Fixed deposits are great investment options for the ones with a traditional point of view of saving, but at times, one needs to have a greater stable return on an investment over a shorter period, rather than a traditionally longer period. 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 deposit periods of as low as 7 days. This specific scheme is known as Union Bank of India Short Deposit Receipt.
Eligibility Criteria for applying for Union Bank of India Short Deposit Receipt
The basic eligibility criteria for opening a Short Deposit Receipt with Union Bank of India are as follows –
- Customer must be above 18 years of age
- Customer must be either salaried, self-employed or retired and an Indian citizen
- 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 Short Deposit Receipt
| Account Type |
Both individuals and non-individuals can apply. Hindu Undivided Families allowed. Accounts can be jointly held |
| Deposit Amount |
Minimum deposit is INR 500000 (for a duration of 7 days to 14 days) No maximum limit for deposits |
| Rate of Interest |
Anywhere between 4.00% per annum to 8.10% per annum |
| Period |
Minimum duration – 7 days Maximum duration – 10 years (Short Deposit criteria ends at 179 days) |
| TDS |
TDS Certificate will be issued by the Bank |
| Lock-in Period |
7 days |
| Tax Rebate Applicability |
N/A |
| Loan against Union Bank of India Short Deposit Receipt |
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 change of terms is allowed by the bank |
Union Bank of India Short Deposit Receipt 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.
The interest to be paid will be credit to the Savings, Current or Cumulative account of the depositor after the maturity. 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 Short Deposit Receipt FAQs
- How to apply for a Short Deposit Receipt Deposit in Union Bank of India?
One can apply for a Short Deposit Receipt with Union Bank of India through any of its official branches by furnishing the required documents and the minimum deposit amount.
- What are the documents required for opening a Short Deposit Receipt 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.
- What is the interest rate applicable for a Short Deposit Receipt Deposit account?
The interest rate could range from 4.00% per annum to 8.10% per annum. That would include any additional interest provided for senior citizens too.
- What is the maturity period of a Short Deposit Receipt Deposit?
The minimum maturity period of a Short Deposit Receipt will be 7 days and the maximum would be 10 years, though the classification of a Short Deposit is valid only till a maximum time of 179 days.
- What is the lock-in period for a Short Deposit Receipt Deposit account?
Though there are no applicable lock-in periods for this deposit, the minimum time the deposit has to be retained is 7 days.
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