Overview of United Bank of India
United Bank of India (UBI) was nationalised on 19th of July, 1969. Currently, the bank is 100% CBS enabled with a wide network of 1999 branches. UBI boasts of a ‘three-tier’ organisational set-up, one Head Office and 35 Regional Offices. The bank has three fully equipped overseas branches, one each in Kolkata, New Delhi and Mumbai, respectively.
Recurring Deposit from United Bank of India
A Recurring Deposit is a very practical method of saving. It gives you the option of investing a small amount every month at attractive rates of interest. Recurring Deposit is ideal for those with a steady monthly income since the depositor doesn’t face the burden of investing a lump sum, it becomes very feasible.
To help its customers achieve their financial goals, United Bank of India offers Regular Recurring Deposit and Untied Flexi Deposit schemes. These schemes are available at competitive rates of interest along with other benefits.
Features and Benefits of United Bank of India’s Recurring Deposit
Regular Recurring Deposit
- A fixed sum is saved every month, for the entire deposit tenure. On maturity, the depositor gets back the principal along with the interest earned.
- A Regular RD account can be opened by an individual alone or jointly with another individual.
- If the RD account is in the name of a minor, then it needs to be operated by the child’s legal guardian on his/her behalf.
- The minimum deposit tenure is 6 months and maximum is 120 months.
- The minimum monthly instalment amount is Rs. 50.
- The interest earned on RD is free of TDS deductions, as per the current income tax rules.
United Flexi Deposit Scheme
- This kind of Recurring Deposit offered by UBI, gives the depositor flexibility in deciding the monthly instalment amount.
- United Flexi Deposit account can be opened in the name of an individual alone, jointly with another individual, or a set of individuals.
- The minimum core monthly instalment amount is Rs. 50/-
- It is mandatory that the core amount is deposited every month. The depositor also has an option of depositing more than the core amount.
- The maximum limit of a monthly instalment is ten times of the core deposit amount.
- The deposit tenure ranges between 3 years to 10 years, in multiples of complete quarter.
- In case of premature closure of United Flexi Deposit account, a penalty will be charged as per the bank policies.
- The interest earned is free of TDS deductions, as per the current income tax rules.
- You can also get the benefit of availing a loan against deposit, as per the prevailing rules of the bank. Contact the nearest branch or visit the bank’s website for more details on the same.
Interest earned on United Bank of India’s Recurring Deposit
UBI offers Recurring Deposit schemes at competitive rates of interest. The rate of interest depends on the period of deposit.
For United Flexi Deposit, customers enjoy similar rates of interest to that of term deposits. This is payable half-yearly in September and March (every year) on the monthly product of the minimum balance, is maintained between 10th and last day of each month. For more details on the interest rates offered on Recurring Deposit schemes, interested customers can contact the nearest branch.