Overview of Union Bank of India
Founded in November 1919 as a limited company in Mumbai, this BSE listed bank has come a long way in terms of the stable growth and strategic acquisitions. Today, UBI is one of the largest public sector banks in the country with a strong network of 4,000 branches supported by a little over 6,400 ATMs.
Union Bank has a massive customer base of over 49 million, efficiently serviced by a strong employee base of 31,000 staffers. This Mumbai headquartered banking and financial services institution extends services to individuals, firms and corporates along with government agencies and departments across India. In its deposits portfolio, Union bank offers savings & salary accounts, current account and a variety of term deposit schemes.
Recurring Deposit (RD) From Union Bank of India
Akin to other public sector banks, Union bank offers RD schemes with attractive interest rates and flexible features. Two schemes form the core of the term deposit portfolio. These options help investors to steadily build corpus over a period of time by way of monthly remittances under this scheme. Recurring Deposits are also known as Cumulative Deposits. The RD scheme is open to all categories of customers which includes salaried individuals and corporates.
Recurring Deposit schemes from Union Bank of India
The traditional RD scheme with appealing features and benefits. Monthly installment amount can be as low as Rs.50 with a deposit period ranging from 6 months to 120 months. A unique feature exclusive to this scheme is that any interim discontinuation of monthly installments, owing to a genuine reason, will result in the existing amount converted into a fixed deposit account for rest of the term.
Union Monthly Plus
An RD scheme that offers flexibility to invest an amount as per your convenience on the basis of “Core Amount”. The depositor can step up monthly remittances in multiples of this amount. An added benefit is that no penalty is levied on premature withdrawals and delay in monthly payments.
Features and Benefits of Union Bank of India Recurring Deposits
- Resident Indians which includes individuals, minors, firms, associations, corporates, clubs, societies etc. are eligible to open the CD account. Two or more individuals can operate the account jointly.
- Monthly installment amount starts as low as Rs.50 and in multiples of Rs.10 thereafter.
- The depositor can choose a period that best suits investment needs from a term option ranging from 6 to 120 months in multiples of 1 month.
- Once the term of deposit is selected at the time of initiation, it cannot be altered. However, in case of discontinuation of payment of monthly installments, owing to a valid reason, the amount parked in the CD account can be converted into a fixed deposit for rest of the term.
- Interest rates are applied on a quarterly basis. The maturity amount will be payable one month after the last installment payment.
Union Monthly Plus
- Open for investment to a large category of customers such as individuals, institutions, corporates, HUF etc.
- The depositor can choose a “core amount” which acts as base amount for stepping up future monthly installments, paving way for flexibility. Future installments cannot fall below the chosen core amount.
- The period of deposit starts at 6 months with an upper cap of 60 months. The customer can choose a term between this range in multiples of 1 month.
- No penalty is levied for delay in monthly payments or premature closure. This feature is one of its kind in the banking segment.
- Interest rates will be computed on daily product basis.
- Depositors also qualify for loan facility of up to 75% of the outstanding amount in the RD account.
Interest Rates Offered on Union Bank’s Recurring Deposit
Based on the RD scheme & deposit period chosen, interest earnings varies widely. For all deposits ranging from Rs. 1 to Rs. 10 crores, the interest rate ranges from 8.25 to 8.50%. The rates are subjected to periodic changes. Do inquire with the nearest branch or check on the bank’s web portal for latest rates on deposits.
Senior citizens are eligible for an additional rate of 0.50% over the prevailing rates.
Process For Opening an Recurring Deposit with Union Bank of India
Existing customers of Union bank can log onto to their internet banking account and open a CD account online directly linked to the savings/current account. New customers can approach the nearest banking branch for instructions on opening an account. You will be required to produce documents below to facilitate the initiation.
- ID and address proof
- Passport sized photograph
- Introduction as per bank rules
- PAN and contact details
Know the Current Recurring Deposit Rates
- Union Bank of India RD Rates Comparison with Other Banks and Institutions
- Union Bank of India Recurring Deposit Interest Rates