Union Bank FD rates effective from May 23rd, 2023 (expressed as annual percentage rates)
| Period | General Customers | Senior Citizens | Super Senior Citizens |
|---|---|---|---|
| 7-14 Days | 3.00% | 3.50% | 3.75% |
| 15-30 Days | 3.00% | 3.50% | 3.75% |
| 31-45 Days | 3.00% | 3.50% | 3.75% |
| 46-90 Days | 4.05% | 4.55% | 4.80% |
| 91-120 Days | 4.30% | 4.80% | 5.05% |
| 121-180 Days | 4.40% | 4.90% | 5.15% |
| 181 Days to <1 Year | 5.25% | 5.75% | 6.00% |
| 1 Year | 6.75% | 7.25% | 7.5% |
| 1 Year to 398 days | 6.75% | 7.25% | 7.5% |
| 399 days | 7.25% | 7.75% | 8% |
| >400 days to 2 Years | 6.30% | 6.80% | 7.05% |
| > 2 years to < 3 Years | 6.50% | 7% | 7.75% |
| 3 years | 6.5% | 7% | 7.25% |
| >3 Years to 5 Years | 6.5% | 7% | 7.25% |
| >5 Years to 10 Years | 6.5% | 7% | 7.25% |
Union Bank of India offers various fixed deposit schemes tailored to meet different financial needs and goals. To help you choose the best scheme and estimate potential returns, you can use the Union Bank FD Calculator.
Types of Union Bank FD Schemes
- Short Deposit Receipt (SDR): This deposit scheme allows customers to invest for short periods ranging from 7 days to less than a year, making it suitable for those who want to park their surplus funds for short durations.
- Fixed Deposit Receipt (FDR): This is a traditional fixed deposit scheme where customers can deposit a lump sum for a predetermined period at a fixed rate of interest. The interest earned can either be paid out periodically or reinvested, depending on the customer’s preference.
- Monthly Income Scheme (MIS): This deposit scheme is designed to provide a regular monthly income to customers by paying out the interest earned on the deposit every month. It is ideal for those who require a stable monthly income, such as retirees.
- Deposit Re-Investment Certificate (DRIC): In this scheme, the interest earned on the deposit is reinvested in the deposit, allowing customers to benefit from the power of compounding. This scheme is suitable for those looking for long-term wealth creation.
- Cumulative Deposit Scheme: Similar to DRIC, this scheme also reinvests the interest earned, allowing the deposit to grow at a compounded rate. The primary difference is that the interest is compounded quarterly, resulting in higher returns over time.
- Union Monthly Plus: This scheme is designed to provide a higher interest rate to customers who commit to a monthly deposit for a predetermined period. It is an excellent option for those looking to save consistently while earning attractive returns.
- Money Flex Term Deposit (MFTD): This is a flexible deposit scheme that allows customers to withdraw a portion of the deposit without affecting the interest earned on the remaining balance. This scheme offers a combination of liquidity and higher returns.
- Union Tax Saver: This fixed deposit scheme is designed to help customers save on taxes under Section 80C of the Income Tax Act. Investments made in this scheme have a lock-in period of 5 years and offer tax benefits.
- Easy Tax Saver Deposit Scheme: Similar to Union Tax Saver, this scheme also offers tax benefits under Section 80C. The unique feature of this scheme is that customers can make deposits in installments, making it more accessible for those with limited funds.
- Capital Gain Scheme: This scheme helps customers invest the proceeds from the sale of capital assets, such as property or shares, in a tax-efficient manner. By investing in this scheme, customers can defer or save on capital gains tax.
- Motor Accident Claims Annuity Deposit (MACAD): This deposit scheme is designed for claimants who have received compensation from motor accident claims. It provides a regular income to claimants by investing the compensation amount in an annuity deposit.
- Non-Callable Term Deposit Scheme: This scheme offers a higher interest rate compared to regular fixed deposits but does not allow premature withdrawal. It is suitable for those who can commit their funds for a predetermined period without the need for liquidity.
Now that you’re familiar with the different fixed deposit schemes offered by Union Bank of India, you can make an informed decision about the best option for your financial goals. To compare the returns on various schemes and calculate the maturity amount, total interest earned, and payout frequency, use the Union Bank FD Calculator.
Before choosing a fixed deposit scheme, it’s essential to understand the features and benefits of each scheme and select the one that best aligns with your financial goals and requirements.
FAQ Question: How can I determine if I am eligible for the senior citizen benefits offered by Union Bank of India for fixed deposit schemes?
Union Bank of India provides additional interest rate benefits for senior citizens (aged 60 years and above) and super senior citizens (aged 80 years and above). To check if you are eligible for these benefits, you can use our Age Calculator to determine your age accurately. Simply enter your birth date, and the calculator will display your current age, allowing you to confirm your eligibility for the senior or super senior citizen benefits on fixed deposit schemes.
What are the current FD rates offered by Union Bank?
The current FD rates offered by Union Bank vary from 3% to 7.30% p.a. depending on the deposit amount and tenure.
What is the minimum and maximum deposit amount for Union Bank FDs?
The minimum deposit amount for Union Bank FDs is Rs. 1,000 and there is no maximum limit for deposit.
What is the minimum and maximum tenure for Union Bank FDs?
The minimum tenure for Union Bank FDs is 7 days and the maximum tenure is 10 years.
What is the eligibility criteria for opening an FD account with Union Bank?
Any individual or entity, including minors, HUFs, trusts, and companies, can open an FD account with Union Bank.
What is the penalty for premature withdrawal of Union Bank FDs?
What is the penalty for premature withdrawal of Union Bank FDs?
Are the interest rates on Union Bank FDs fixed or floating?
The interest rates on Union Bank FDs are fixed and remain the same throughout the tenure of the deposit.
Does Union Bank offer any tax-saving FD scheme?
Yes, Union Bank offers a tax-saving FD scheme under Section 80C of the Income Tax Act, 1961, with a lock-in period of 5 years and an interest rate of up to 5.30% p.a.
Can the interest earned on Union Bank FDs be reinvested?
Yes, Union Bank offers an option to reinvest the interest earned on FDs, which helps in increasing the overall returns on the deposit.