|Recurring Deposit Period||Interest Rates* (p.a.)|
|7 day – 14 day||5%|
|15 day – 30 day||5%|
|31 day – 45 day||5%|
|46 day – 90 day||5.50%|
|91 day – 120 day||6.25%|
|121 day – 179 day||6.25%|
|181 day to less than 10 months||6.50%|
|10 months to 14 months||6.75%|
|More than 14 months to 3 years||6.60%|
|More than 3 years to 5 years||6.70%|
|More than 5 years to 10 years||6.70%|
*Less than Rs.2 crore.
Union Bank Recurring Deposit Schemes
Union Bank offers different types of RD schemes to suit the different requirements of its customers. These schemes are offered with unique features and are known as Cumulative Deposit and Union Monthly Plus.
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 RD, 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.
- 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.
- 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.
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.
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.
More you need to know about Recurring Deposit
- Compare Interest Rates on RD of Union Bank of India with Other Banks and Institutions
- Check Features and Schemes of Union Bank of India Recurring Deposit