The Union Bank of India is one of the largest government-owned banks in the country which offers its customers a wide range of financial products. The bank also offers ease in accessing these products through a digital banking platform. The Union Bank of India offers the facility of fixed deposit to its customers along with an interest rate for the FD which ranges from 3.00% to 5.40%.
Types of Fixed Deposits by Union Bank of India
- Fixed Deposit Scheme
- Monthly Income Scheme
- Union Tax-Saver Deposit
- Easy Tax-Saver Deposit Scheme
- Short-Deposit Receipt
Features of Deposit Re-Investment Scheme
- Minimum deposit period is 6 months.
- High rate of interest with interest compounded quarterly.
- Loan against DRIC deposit available.
- Facility of nomination will be available.
- Minimum amount to be deposited is Rs.100 for rural or Semi-urban areas and Rs.500 for Urban/Metro cities.
- The tenure of deposit ranges from 6 months to 120 months.
Features of Fixed Deposit Scheme
- The deposit tenure ranges from 7 days to 10 years.
- The minimum amount to be invested is Rs.5,000 for rural/semi-urban areas and Rs.10,000 for Urban/Metro cities.
- Higher interest rate for senior citizens.
- A loan facility up to 90% of the principal amount and accrued interest is available.
Features of the Monthly Income Scheme
- With this scheme, interest is payable at the contracted rate every month.
- The tenure of the FD ranges from 6 months to 10 years.
- The interest is paid at a discounted value.
Features of Union Tax-Saver Fixed Deposit
- Lock-in period of 5 years.
- Minimum amount to be invested is Rs.5,000 and maximum is Rs.1.5 lakhs.
- The period of investment ranges from 5 years to 10 years.
- Tax exemption under Section 80C of the Income Tax Act.
- Senior citizens will receive an additional rate of interest.
- Interest can be paid every quarter, every month or as a lump sum at the time of maturity.
Features of Easy Tax-Saver Deposit Scheme
- The amount can be invested on a monthly basis through regular instalments per month.
- Customers can also invest a lump sum amount when they have surplus cash.
- The amount invested is eligible for tax exemption.
Features of Short-Deposit Receipt
- Deposits can be made for a tenure between 7 days and 10 years.
- A minimum deposit of Rs.5 lakh can be made the tenure of 7 days to 14 days.
- Tenure of 7 days to less than 6 months are termed as Short-term deposits.
Union Bank Fixed Deposit Interest Rates for deposits below Rs.2 crore
|Tenure||Rate of Interest (%)|
|7 - 14 days||3.00%|
|15 – 30 days||3.00%|
|More than 1 month – 45 days||3.00%|
|46 days – 3 months||3.75%|
|91 days – 4 months||4.25%|
|121 days to – 6 months||4.30%|
|More than 6 months – less than 1 year||4.50%|
|1 year – 3 years||5.25%|
|3 years – 5 years||5.30%|
|5 years – 10 years||5.40%|
Note: It is advised to contact the nearest branch for the interest rate applicable for fixed deposits of more than Rs.2 crore.
Eligibility Criteria for the Union Bank Fixed Deposit
The eligibility criteria for opening the fixed deposit in Union Bank would be any resident individual for single accounts and two or more individuals for joint accounts will be required. Apart from this, Illiterate persons, Blind persons, Purdanasheen women, minors, associations, clubs, societies, etc. and Trusts, Institutions specifically permitted by the RBI can open an FD account.
Documents Required for the Union Bank Fixed Deposit for Individuals
The documents which are required for opening an fixed deposit account with the Union Bank of India are:
For Proof of Identification
- Aadhaar Card
- Voter ID
- Driving License
- Recent passport-sized photographs
For Proof of Address (if Aadhaar card does not contain updated address)
- Utility bill – Less than 2 months old
- Property or Municipal tax receipt
- Pension payment orders
FAQs on Union Bank FD
- What is the range of interest rate on the Union Bank fixed deposit?
The rate of interest depends on the tenure of the FD and ranges between 3.50% per annum to 5.45% per annum.
- How can I break my Union Bank FD?
You can withdraw your fixed deposit account through the process of premature withdrawal. You will have to visit the branch of the bank and fill the form for premature withdrawal along with producing the receipt for your fixed deposit account. It is important to know that most banks charge a nominal fee for premature withdrawal which need to be paid. The bank will then process the application and the amount will be credited to the desired account.
- Will TDS be applicable for the fixed deposits at Union Bank?
Yes, TDS will be deducted on the interest accrued on your fixed deposit as per the Income Tax Act. However, if you choose to deposit your money in a Tax-Saver FD, you will receive a tax exemption of up to Rs.1.5 lakh as per Section 80C of the Income Tax Act.
- What is the interest rate offered to senior citizens on the fixed deposit?
Senior citizens will receive an additional interest rate as decided by the Union Bank of India.
- How can I open a FD account with the Union Bank of India?
To open a fixed deposit account with the bank, you can either visit your nearest branch of the bank or apply online through the website of the Union Bank of India. Apart from this, you can also call the 24/7 customer care number of the bank and open your account with the help of a bank representative.