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    Union Bank of India Monthly Income Scheme

    Fixed deposits are great investment options for the ones with a traditional point of view of saving, but then there’s a constraint of not having liquidity options when financial needs suddenly crop up. Union Bank of India offers its customers an option to open a fixed deposit account that allows them to benefit from preferential interest rates and also a monthly pay out of interest as per the contracted rate. This specific scheme is known as Union Bank of India Monthly Income.

    Eligibility Criteria for applying for Union Bank of India Monthly Income

    The basic eligibility criteria for opening a Monthly Income Deposit with Union Bank of India are as follows –

    1. Customer must be above 18 years of age 2. Customer must be either salaried, self-employed or retired and an Indian citizen 3. Customer must have existing banking relationship with Union Bank of India or must come with proper introductions

    Apart from the above mentioned basic criteria, the bank might require additional conditions to be fulfilled, based on its discretion.

    Features of Union Bank of India Monthly Income

    Account Type Both individuals and non-individuals can apply. Hindu Undivided Families allowed. Accounts can be jointly held
    Deposit Amount Minimum starting deposit is INR 10000 for urban areas, INR 5000 for semi-urban and rural areas, as well as senior citizens

    Minimum subsequent deposit is in multiples of INR 1000 No maximum limit for deposits

    Rate of Interest Anywhere between 4.00% per annum to 8.10% per annum
    Period Minimum duration – 6 months

    Maximum duration – 10 years

    TDS TDS Certificate will be issued by the Bank
    Lock-in Period N/A
    Tax Rebate Applicability N/A
    Loan against Union Bank of India Monthly Income Scheme N/A (subject to change based on bank’s discretion)
    Nomination Nomination facility is available
    Auto Renewals The scheme is valid only for the period selected at initiation. Renewal for another year happens only if the deposit is continued

    Union Bank of India Monthly Income Scheme Interest Rates

    The interest rates offered on Union Bank of India Monthly Incomes are linked to the base rate of the bank. As of December 2015, the rates could be anywhere from 4.00% per annum to 7.60% per annum for the general populace. Senior citizens might get an additional rate over and above the advertised rates.

    Interest on the deposit made is payable at a discounted monthly value. The interest to be paid will be credit to the Savings, Current or Cumulative account of the depositor during the last week of every month. The interest rates as of December 2015 are as follows –

    Period of Deposit Rate of Interest (Deposits < INR 1 crore)
    7 days to 14 days 4.00
    15 days to 30 days 5.25
    31 days to 45 days 5.60
    46 days to 90 days 6.50
    91 days to 120 days 6.75
    121 days to 179 days 7.00
    180 days 7.00
    181 days to less than 1 year 7.60
    1 year 7.75
    Above 1 year to 3 years 7.70
    Above 3 years to 5 years 7.50
    Above 5 years to 10 years 7.50

    All the above mentioned rates are dependent on the bank’s discretion and are liable to change anytime.

    Union Bank of India MIS FAQs

    1. How to apply for a Monthly Income Deposit in Union Bank of India?

      One can apply for a Monthly Income Deposit with Union Bank of India through any of its official branches by furnishing the required documents and the minimum deposit amount.

    2. What are the documents required for opening a Monthly Income Deposit?

      One would require an introduction to the bank or should be an existing customer. Apart from that, two recent passport size photographs of the person(s) opening the account will be required. Government attested ID proof and declaration through Form 60 or 61 or PAN (Permanent Account Number) or GIR (General Index Register) needs to be provided.

    3. What is the interest rate applicable for a Monthly Income Deposit account?

      The interest rate could range from 4.00% per annum to 8.00% per annum. That would include any additional interest provided for senior citizens too.

    4. What is the maturity period of a Monthly Income Deposit?

      The minimum maturity period of a Monthly Income Deposit will be 6 months and the maximum would be 10 years.

    5. What is the lock-in period for a Monthly Income Deposit account?

      There are no applicable lock-in periods for this deposit and it can be prematurely cancelled at any time to obtain the principal and accrued interest.

    Useful Information on Union Bank Fixed Deposit

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