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Union Bank of India, founded in Mumbai in 1919, is a leading public sector banks in India. The bank has continuously shown profits during the 93 years of its operation and now operates a network of 4000+ branches in the country. With a large client base of 49 million, the bank has attained business of ₹ 5, 32,007 crore and takes pride in 100% Core Banking Solution implementation. The bank lends to different sectors of the economy such as exports, industry, trading, infrastructure, agriculture, and SME segments to boost economic growth. With its employee strength of 31,000, the bank is poised to provide a customer-centric approach to banking with the aid of cutting-edge technology.
UBI’s fixed deposit schemes are devised to meet the investing needs of different investors. To this end, Union Bank of India offers FD schemes that feature varying tenures, each with interest rates set to maximise returns to the depositor.
Any Resident Individual - Single Accounts, Minors (with co-signing adults), Hindu Undivided Families, Two or more individuals in Joint Accounts, Illiterate Persons, Purdanasheen Ladies, Blind persons, Societies, Associations, Clubs, etc. Trusts, Institutions/Agencies specifically permitted by the RBI are eligible to open a fixed deposit account in the bank in single/joint name/s can open FDs in UBI.
However, certain types of accounts are meant for specific depositors and the rules clearly prohibit others to deposit in them. Tax Saver FDs are meant only for individuals and HUFs with PAN, but not for trusts, societies and companies etc.
Union Bank of India has an array of fixed deposit schemes such as Short Deposit Receipts (SDR), Fixed Deposit Receipt (FDR), Deposit Reinvestment Certificate (DRIC), Monthly Income Scheme, Union Tax Saver and Union Capital Gains Deposits.
The Deposit Re-investment Certificate (DRIC) allows deposits as low as ₹ 100/- in rural/semi-urban centers and ₹ 500/- in urban/metro centers. This minimum amount may differ for other types of FDs.
However, minimum amount requirement does not apply to Govt-sponsored subsidy schemes, margin money, earnest money and court attached/ordered deposits.
Usually the maximum deposit amount allowed under FD is ₹ 10 crores. More about maximum amount to be deposited under FD can be found from the nearest Union Bank of India branch. However, acceptance of high value fixed deposits are subject to regulatory approvals.
Fixed deposits can be held for as short as 7 days under SDR to as long as 10 years.
Union Bank allows accounts to be opened online or at any of its branches. You will have to submit Know Your Customer (KYC) documents as mandated by Reserve Bank of India (RBI) and deposit the amount in cash, cheque or demand draft.
Union Bank of India offers interest at different rate slabs for deposits below ₹ 1 crore and for deposits over Rs 1 crore. Currently the interest rate on FDs below Rs 1 crore is 4- 8.75 % P.A with varying tenures from 7 days to 10 years. For amounts over ₹ 1 crore, this rate varies between 4-8.5 percent p.a.
However, interest rates may change with a change in bank rates as announced by RBI from time to time.
Yes, UBI does offer a tax savings deposit scheme called Union Tax Saver. The deposit can be of opened either in name of single holder or jointly. The amount stays locked-in for a period of five years. An individual with PAN or Karta of the Hindu undivided family may open it in their single name. In a joint holder type of deposit receipt can be held by two adults/ an adult and minor with at least one adult holding a PAN. Either of the holders or the survivor can claim the matured deposit. The deduction from income under section 80C of the Act shall be available only to the first holder of the deposit in a joint FD.
The minimum amount accepted under Union Tax Saver is ₹ 5,000/- and in multiples of ₹ 1,000/- thereof. A maximum limit of ₹ 1,50,000/- can be deposited in a financial year. However, the scheme is subject to announcements regarding tax exemptions. The deposits are accepted for a minimum period of 5 years and maximum period of 10 years.
Interest on UBI Fixed Deposits shall be liable to tax under the Income Tax Act. As per current rules, if the total interest on deposits, per depositor, per financial year, per branch is more than Rs 10,000.
TDS will be applicable under Union Tax Saver as per existing guidelines. PAN is mandatory while opening FD accounts with Union Bank of India. If a depositor does not have PAN, he/she may declare so in the relevant form available with the bank.
UBI FDs offer the following features:
Yes, loans can be availed against Union Bank of India FDs. UBI allows loan amounts up to 90% of the amount held as principal and interest earned thereon under a deposit. But Tax Saver deposits can only be pledged after 5 years.
Yes, senior citizens are entitled to a higher rate of interest on fixed deposits. The bank offers an additional rate component (higher than normal deposits) to senior citizens on any size of deposit on all of its domestic term deposit schemes. This is usually applicable to domestic term deposits of one year and above, and 0.50% over the normal rate.
The bank treats any person who has completed the age of 60 years as a senior citizen for availing the additional interest benefits.
The bank allows senior citizens to open a deposit jointly with other persons below the age of 60, to avail higher interest rates. In such cases the name of the senior citizen is to be given as the first name in the application. However, NRI senior citizens are not eligible for the benefit of additional interest available to residents.
UBI offers credit cards to salaried and self-employed professionals on the basis of their PAN card and IT returns. However, in case the documents are not available, credit cards are also offered against fixed deposits. The credit limit on the cards is linked to the amount of the FD.
Yes, you can withdraw the deposit before its maturity. The interest payable will be at the rate applicable on the date of the deposit and for the period the deposit has remained with the bank. But you won’t be paid any interest for deposits that have remained with the bank for less than 7 days. If you are withdrawing a deposit to renew the deposit, the deposit will be renewed for a period longer than the balance period of the first original deposit.
Yes, NRIs and PIOs can open the account in Indian currency for a minimum of 1 year to a maximum period of 10 years. Income tax is not charged on the depositor. The principal and interest amount are fully repatriable. The depositor can appoint nominees to their accounts. The depositor can open joint accounts along with one or more NRIs or PIOs. In terms of Power of Attorney given to operate the account, the permission is allowed for withdrawals and local payments and for investments on the behalf of the depositor.