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  • Union Bank Cumulative Deposit Scheme

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    Union Bank of India offers the Union Cumulative Deposit Scheme targeting the middle, lower, lower middle, salaried and the upper middle segments of the society. This scheme helps small-time investors to save for their future by depositing funds as monthly installments for a fixed tenure. Customers can open a Cumulative account as a single applicant or make joint applications. Deposit holders can start their accounts with minimum deposit amounts and can choose any tenure option meeting their financial requirements. Union Cumulative Deposits can be opened by approaching any Union Bank branch or calling the 24/7 customer care centre.

    Eligibility for Union Cumulative Deposit Scheme

    Resident Indians, visually impaired persons, Purdanasheen Ladies, illiterate persons, associations, minors, societies, clubs, trusts, agencies, institutions, etc., are eligible to open a Union Cumulative Deposit account.

    Features of the Union Cumulative Deposit Scheme

    The Union Cumulative Deposit Scheme carries the following features as put down by Union Bank of India.

    Installment Amount

    Customers can start their recurring deposit accounts with a minimum balance of Rs. 50 and can be incremented in multiples of Rs.5. The installment amount that the customer has chosen when the account was opened has to be paid on a monthly basis. Once the number of installments has been chosen, the same cannot be changed by the customer. However, Union Bank does give account holders the option of changing their Cumulative deposits into Term deposits before the maturity date. The maturity amount earned on the recurring deposit account will be paid to the customer a month after the last installments has been given. When a new Union Cumulative Deposit account is opened a passbook will be given to track the payment of installments.

    Mode of Deposit

    Monthly installment payments can be done in form of standing instructions set from the customer’s savings account.

    Tenure of deposit

    The tenure chosen for the Union Cumulative Deposit Scheme can range from 6 months to up to 120 months, in multiples of three months. Tenures can range from 6 months to 1 year, 1 year to 3 years, 3 years to 5 years and from 5 years to 10 years.

    Account Operation

    Joint accounts can be operated with two or more account holders. Funds in a joint recurring deposit account will be disbursed on the maturity date or if one of the account holders expires before the completion of the tenure.

    Interest rates

    Union bank of India offers competitive interest rates for Union Cumulative Deposit accounts. The interest rate given for the Union Cumulative Deposit Scheme is compounded on a quarterly basis. For recurring deposit amounts below Rs. 1 crore, the interest rate offered ranges between 4.00% to up to 7.25%, depending on the tenure. For recurring deposit amounts between Rs. 1 crore and Rs. 10 crore, the interest rate offered ranges between 4.00% to up to 6.75%, depending on the tenure.


    TDS will not be applied on the interest earned on the Union Cumulative Deposit Scheme.


    Union Bank of India does offer the nomination facility for Union Cumulative Deposit Scheme holders. Relatives can be nominated and the name of the nominees can be changed by submitting a declaration to Union Bank. Only one nominee can be selected and customers can also select NRIs as nominees.


    Account holders can get loans against the outstanding balance in their recurring deposit accounts.

    Premature Closures

    If a Union Cumulative Deposit is closed before the completion of the stipulated tenure then the interest that will be paid will be as per the rate on the deposit date, depending on the tenure that the deposit has remained open. If premature withdrawals are done then a penal interest rate will be applicable.

    Benefits for Senior Citizens

    Senior citizens can get an additional interest rate of 0.50% on recurring deposits placed with tenures of one year and above. Joint applications can be made by senior citizens along with individuals below the age of 60. Union Bank will verify the age of the senior citizen while availing the special interest rate benefit. Senior citizen account holders have to submit the following documents while opening the recurring deposit account - Senior School Leaving Certificate with date or birth, LIC policy, Pension payment order, Voter’s ID, birth certificate, passport, etc.

    Documents Required

    Customers have to submit certain KYC documents as requested by Union Bank of India while opening a Union Cumulative Deposit account.

    ID Proof

    • PAN card
    • Passport
    • Voter's ID card
    • Driving License
    • NREGA Job Card
    • Aadhaar Card

    Address Proof

    • Passport
    • Voter's ID card
    • Driving License
    • Aadhaar Card
    • Letter given by Unique Identification Authority of India (UIDAI)

    Corporations/ Companies

    • Certification of Incorporation
    • Memorandum and Articles of Association
    • List of directors with bio-datas
    • A resolution from the Board of Directors
    • Central Government License

    Trusts/ Foundations

    • Trust Deed
    • Certificate of Registration
    • List of Trustees.
    • Settlers Declaration
    • Resolution from the trust’s managing committee for opening the account.
    • Officially valid Document - Power of Attorney

    Societies/ NGOs/ Associations/ Clubs, etc.

    • Photographs of members
    • Certificate of Registration
    • Managing Committee Members’ list with bio-data
    • Bye laws
    • Resolution from the organization’s managing committee for opening the account.

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