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Union Bank of India RD Interest Rates 2020

Union Bank of India offer attractive interest rates on recurring deposits (RDs). The bank which offers the Union Monthly Plus RD scheme to its customers offer a rate of return that ranges between 5.50% to 5.90%p.a. The RD account can opened for a period that ranges between 181 days to 10 years.

Recurring Deposit Period Interest Rates* (p.a.) for General citizens
181 days to less than a year 5.50%
1 year 5.75%
More than 1 year and less than 443 days 5.75%
444 days 5.85%
444 days to 554 days 5.75%
555 days 5.90%
555 days to 3 years 5.75%
More than 3 years to 10 years 5.80%

Note: The mentioned interest rates are for deposits of up to Rs.2 crore as of 31 March 2020.

Union Bank Recurring Deposit Scheme

Union Bank offers the Union Monthly Plus RD scheme to its customers. The scheme offer some unique features and suit the different requirements

Note: The mentioned interest rates are for deposits of up to Rs.2 crore as of 18 February 2020.

Union Bank of India Cumulative Deposit

If you’re looking to invest with small amounts in monthly instalments with a fixed timeline, Union Bank of India offers the Union Cumulative Deposit Scheme. Through this type of Recurring Deposit, the bank wants to cater to lower/lower middle/middle/upper middle and salaried individuals.

If you’re a resident of India and hold a savings account with Union Bank, or two or more individuals with a joint account, visually impaired, illiterate individuals, minors, associations, clubs, societies, purdanasheen ladies, etc., can choose the Union Cumulative Deposit as permitted by the Reserve Bank of India (RBI). Also, institutions/agencies, trusts permitted by the RBI are eligible to take advantage of this scheme.

Features

  • The minimum amount starts from Rs.50 per month as instalments.
  • You can choose tenures between 6 months and 120 months (multiples of 1 month).
  • The number of instalments cannot be changed; however, it can be converted into a Term Deposit prior to maturity, subject to the term deposit tenure is much larger than the cumulative deposit.
  • Interest rates at permissible levels are compounded every quarter.
  • TDS will be applicable on the interest component of the cumulative deposit.
  • Upon maturity of the deposit, the amount will be disbursed a month after the last instalment of the deposit.

Union Bank of India Union Monthly Plus

The Union Monthly Plus RD scheme offers ‘Step-up’ and ‘Step-down' options. Through this option, you can increase the monthly instalment amount or decrease it. The scheme is offered to individuals, corporates, institutions, partnership, proprietorship, trust, etc.

Features

  • You’ll have to choose the core amount (minimum of Rs.100 and a maximum of Rs.1 lakh) when you open the RD account and deposit the chosen amount.
  • The deposit tenure ranges from 6 months to 60 months (multiples of 1 month).
  • Interest rates are like the Term Deposit offered by Union Bank and it’ll be computed on a daily product basis.
  • The option of Step-up or Step-down of the monthly instalment.

Step-up Option

The ‘Step-up’ option lets you increase the monthly instalment amount, during any month, of up to 10 times the core amount. For example, if you’ve chosen the core amount as Rs.1,000, then you can Step-up the instalment of up to Rs.10,000.

Step-down Option

After you have stepped up the instalment amount, you can decrease it; however, it cannot be lesser than the core amount.

Union Bank of India Short Term Recurring Deposit Interest Rates

Short-term recurring deposits from Union Bank ranges from 6 months to 1 year. The interest rate for RDs with deposits of less than Rs.2 crore for short-term RDs is between 5% and 6.75% p.a. For deposits more than Rs.2 crore, you’ll have to check with the bank’s nearest branch.

Union Bank of India Medium- and Long-Term Recurring Deposit Interest Rates

The medium- and long-term RD ranges from more than 14 months to 10 years. The rate of interest for RDs with this type of tenures ranges from 6.60% to 6.70% p.a. for deposits of less than Rs.2 crore. Like short-term RDs, the medium- and long-term RDs of more than Rs.2 crore, you’ll have to contact the nearest Union Bank branch.

Union Bank of India Senior Citizen Recurring Deposit Interest Rates

Any individual who has attained the age of 60 is considered a senior citizen. Union Bank of India offers an additional benefit over and above the regular interest rate offered for RDs. Senior citizens who are looking to deposit less than Rs.1 crore, the rate of interest is 0.50% more than the regular interest rates. For more than Rs.1 crore as deposit, you’ll have to contact the nearest branch of the bank.

Union Bank RD Interest Rates FAQs

  • Is nomination facility available?
  • Yes, the facility of nomination is available.

  • Can I avail a loan on the deposit amount?
  • Yes, you can avail a loan on the deposit amount. The bank permits up to 75% of the deposit amount at the time of availing the loan.

  • Is TDS applicable on the interest earned?
  • Yes, TDS is applicable as per the latest changes in the Income Tax Act.

  • Will there be any penalties in case of premature withdrawal?
  • In the case of premature withdrawal, there shall be no penalty.

  • Does the bank levy any charge for delayed installments?
  • No charge is levied by Union Bank of India on delayed installments.

  • Are any receipts provided for payments in my Cumulative Deposit?
  • No, you will not receive any receipts for payments made in the Cumulative Deposit.

  • Can I add nominees to the Cumulative Deposit account?
  • Yes, you can add nominees to the Cumulative Deposit account.

  • Are senior citizens provided any additional benefits on Cumulative Deposits?
  • An additional 0.50% interest rate is provided for senior citizens.

  • Can I change the nominees to the account?
  • Yes, you can change the nominees on the account. However, the relevant application form must be submitted at the bank.

  • Will there be any penalties in case of premature withdrawal?
  • In the case of premature withdrawal, a penal rate of interest will be levied by the bank.

Union Bank RD Schemes

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