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.
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.
|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|
|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|
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|
|181 days to less than 1 year||7.60|
|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.
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.
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.
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.
The minimum maturity period of a Monthly Income Deposit will be 6 months and the maximum would be 10 years.
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