One of India’s largest public sector banks, Union Bank of India, has been serving customers since 1919. The bank presently has more than 120 million customers overall and almost 76,000 employees. It also has a few branches, subsidiaries and representative offices in foreign locations such as Abu Dhabi, Hong Kong, London, etc.
Union Bank FD interest rate ranges from 3.00% to 7% for the general public and 3.50% to 7.50% for senior citizens for investments up to ₹2 crores. Super senior citizens above the age of 80 years get an additional 0.25% on top of the added 0.50% interest that senior citizens receive on investments up to ₹5 crores.
Continue to read this article to know more about different interest rates applicable to Union Bank FD accounts, eligibility and documents required to open an FD account, and types of FD schemes available to customers.
| Minimum Deposit | ₹1000 |
| Maximum Deposit | No maximum limit |
| Minimum Tenure | 7 Days |
| Maximum Tenure | 10 Years |
| Interest Rates | 3% – 7.75% (including super senior citizens) |
| Lock-in Period | 7 Days (In case of Tax Saver FD – 5 Years) |
| Senior Citizen | 3.50% – 7.50% |
| General Citizen | 3% – 7% |
Union Bank FD Interest Rates
Union Bank FD rates depend on the tenure of the FD account, which can extend up to 10 years and offers multiple benefits to investors.
| Tenure | General Citizen | Senior Citizen |
|---|
Features and Benefits of Union Bank FD Interest Rate
Below are the features and benefits of opening a Union Bank FD account.
- You can open a fixed deposit account with Union Bank and choose an investment tenure at your convenience. The tenure can range between 7 days to 10 years.
- With a Union Bank FD account, you can conveniently renew your investment after the completion of your tenure.
- You can withdraw your money from your fixed deposit account prematurely, except in the case of tax-saving FD.
- Union Bank of India’s interest rate on fixed deposit accounts starts at 3% and goes up to 7% for general citizens.
- The Deposit Insurance Scheme of RBI covers bank deposits up to ₹5,00,000 for all types of fixed deposit accounts.
- Senior and super senior citizens benefit from a higher rate of interest of 0.50% and 0.75%, respectively than the rates applicable to general citizens.
How to Book Union Bank FD?
You can use two methods to book an FD with Union Bank of India. Online and Offline: you can easily do it online if you already have a current or savings account with the bank. However, offline methods are also available for individuals who might not be comfortable with online methods.
Let us discuss both the online and offline steps in detail.
1. Online
If you wish to open an FD account online, there are two processes that you can choose from:
1.1. Using Mobile Application – Union Bank of India App
The steps you need to follow to open an FD account using Union Bank of India’s mobile application are as follows:
- Step 1: Download the Union Bank of India App on your mobile and sign in with your credentials (applicable only if you are already a Union Bank customer).
- Step 2: Select the ‘Fixed Deposit’ option and fill in all the necessary details, including maturity instructions and nominee details.
- Step 3: Click on ‘Submit’ after filling in all the details to complete the deposit opening process. You will get a confirmation message upon successful booking of the FD account.
1.2. Using Internet Banking
You can implement these simple steps to open a Union Bank FD account via its Internet banking platform.
- Step 1: Visit the official website of Union Bank of India and sign in to your Net Banking account by using your credentials.
- Step 2: From the main menu, select the ‘Fixed Deposit’ option.
- Step 3: Input all the key details, such as your personal information, nominee details, maturity instructions and others.
- Step 4: Click on ‘Submit’ to complete the process.
Once all your information and documents are verified, you will receive a confirmation message from the bank regarding the successful booking of the account.
2. Offline
- Step 1: Visit the nearest Union Bank of India branch.
- Step 2: Fill out the FD application form with relevant details and present all the important documents along with the deposit amount.
After the application is processed and the submitted documents have been verified, you will receive an FD receipt from the bank, which acts as proof that your account has been booked.
Documents Required to Book Union Bank FD
There are several documents that you need to furnish to establish your identity while opening an FD account with Union Bank of India. Take a look at the list of documents below that you need to produce for the bank.
- PAN card
- Proof of Identity – Driving licence, Passport, Voter ID card, Aadhaar card, Ration card with your photograph, Identification of senior citizen (if applicable)
- Proof of Address – Telephone bill, Bank statement as well as cheque, Electricity bill, Certificate issued by the Post Office, and Aadhaar card.
- Proof of Age – Birth certificate, school passing/graduation certificate
- 2 passport-size photographs of the depositor
- Bank account details – account number, IFSC code, and branch name
Eligibility to Open Union Bank FD
Below is the list of eligibility criteria that you need to check before applying for a Union Bank fixed deposit account.
- Applicant type: Residential Indian with either individual or joint account, Members of Hindu Undivided Family (HUF), Minors with co-signed adults, Non-Resident Indians (NRIs), Clubs, associations and societies, Private and public limited companies, Institutions and agencies.
- Age (in case of individual applicants): More than 18 years of age.
Types of Union Bank FD Schemes
You need to understand here that the Union Bank of India fixed deposit interest rate varies as per the scheme you choose, as the tenure is different for each type. Discussed below are the different types of fixed deposit accounts available for customers to choose from based on their financial goals and needs.
1. Fixed Deposit Receipt
This is an investment instrument provided by the Union Bank of India, allowing you to earn a fixed rate of interest on the amount you deposit for a fixed tenure. The interest rates for FDR get revised as per interest rate announcements in the market.
- Minimum Deposit: ₹1000
- Maximum Deposit: No maximum limit
- Tenure: 6 months – 120 months
- Interest Rate: 4.40% to 7.00%
- Eligibility Criteria: Indian residents
2. Short Deposit Receipt (SDR)
SDR by Union Bank is a type of fixed deposit account that any institution or individual is eligible to book. The bank fixes the interest rates in this case and generally reviews it quarterly. After the bank books your Short Deposit Receipt account, your account will start earning interest from the very next day.
- Minimum Deposit: ₹1000
- Maximum Deposit: No maximum limit
- Tenure: 7 days – 179 days
- Interest Rate: 3.00% to 4.40%
- Eligibility Criteria: Indian Residents
3. Monthly Income Scheme (MIS)
This fixed deposit scheme by Union Bank allows its depositors to earn regular fixed income, along with guaranteed returns at a specific interest rate. Union Bank fixed deposit rates for MIS are set as per the repo rates announced by RBI. In case of premature closure of such an account, you have to pay 1% less than the interest rate applicable as a penalty.
- Minimum Deposit: ₹1000
- Maximum Deposit: No maximum limit
- Tenure: 12 months – 120 months
- Interest Rate: 6.30% to 7.00%
- Eligibility Criteria: Indian residents
4. Deposit Reinvestment Certificate (DRIC)
DRIC is a suitable fixed deposit account for investors intending to invest a lump sum amount and earn compound interest quarterly. Here, the interest earned gets paid with the principal amount on maturity. This compounded amount can be reinvested if you wish to.
- Minimum Deposit: ₹1000
- Maximum Deposit: No Limit
- Tenure: 6 months – 120 months
- Interest Rate: 5.25% to 7.00%
- Eligibility Criteria: Indian residents
5. Cumulative Deposit
The Cumulative fixed deposit account guarantees the investor a good return on investment. Here, the interest is compounded annually, signifying that you will earn interest on interest. This scheme helps to deposit money on a monthly basis and grow it faster over the investment tenure. It should be noted that there is no penalty applicable as well on premature closure of this type of FD account.
- Minimum Deposit: ₹50 per month
- Maximum Deposit: No limit
- Tenure: 6 months – 120 months
- Interest Rate: 5.25% to 7.00%
- Eligibility Criteria: Indian residents
6. Union Tax Saver Deposit
This fixed deposit scheme by Union Bank helps you to save tax on the interest earned under Section 80C of the Income Tax Act 1961. This FD scheme has a 5-year lock-in period, which means that you cannot withdraw the money before the tenure ends.
- Minimum Deposit: ₹5000 (in multiples of 1000 thereof)
- Maximum Deposit: ₹1,50,000 in a financial year
- Tenure: 5 years – 10 years
- Interest Rate: 6.70%
- Eligibility Criteria: Indian residents
7. Money Flex Deposit Scheme
This is a form of term deposit plan which allows the investor to withdraw a portion of the investment at any time before maturity without having to close the fixed deposit account prematurely. It is a good choice for depositors who wish to receive a high rate of return on their savings while still having the freedom to retrieve the cash when needed.
- Minimum Deposit: ₹25,000
- Maximum Deposit: ₹2 crores
- Tenure: 6 months – 120 months
- Interest Rate: 5.25% to 7.00%
- Eligibility Criteria: Indian residents
8. Easy Tax Saver Deposit
With this fixed deposit scheme, Union Bank allows you to invest in different tax-saving fixed deposits via SIP or standing instructions (monthly instalments). This account remains in a continuous deposit form. Union Bank of India’s FD rate applicable in this scheme is 6.70%, and the interest is paid annually on the date of maturity.
- Minimum Deposit: ₹1000
- Maximum Deposit: ₹1,50,000 in a financial year
- Tenure: 5 years
- Interest Rate: 6.70%
- Eligibility Criteria: Indian residents
9. Non-Callable Term Deposit Scheme
The Union Bank Non-Callable Term Deposit scheme offers customers a higher interest rate on the deposit than the regular scheme. You cannot prematurely close this account except in the case of the death of the depositor, court order or depositor being declared as bankrupt. Moreover, this scheme doesn’t come with an auto-renewal facility.
- Minimum Deposit: ₹2 crores
- Maximum Deposit: No limit
- Tenure: 61 days – 3 years
- Interest Rate: 4.05% to 6.50%
- Eligibility Criteria: Indian residents
10. NRE Fixed Deposit
This FD plan is available for non-resident Indians who wish to deposit their foreign earnings in an India FD account. Once deposited, the amount gets converted to INR. Interest is paid on a quarterly basis; however, no interest would be paid if the account is closed before one year.
- Minimum Deposit: ₹10,000 (for FDR in urban and metro branches), ₹5,000 (in semi-urban and rural branches) and ₹5000 (for senior citizens)
- Maximum Deposit: No limit
- Tenure: 1 year – 10 years
- Interest Rate: 6.30% to 7%
- Eligibility Criteria: Non-Resident Indian (NRI)
11. NRE Flexi Fixed Deposit
The NRE flexi deposit scheme integrates features of a fixed deposit and a savings account. You can avail different benefits with this FD plan, such as liquidity and high returns on surplus funds. Please note that this account cannot be booked jointly, and you get the facility of daily sweep-out from the bank.
- Minimum Deposit: ₹50,000 (in savings account)
- Maximum Deposit: No limit
- Tenure: 1 year
- Interest Rate: 6.30%
- Eligibility Criteria: NRI/ OCIs/ PIOs
12. NRE Cumulative
With this type of NRE FD account, an NRI can deposit an amount on a monthly basis. This scheme helps to grow your fixed deposit faster. You must have an NRE account with Union Bank to book this scheme. Moreover, no penalty is charged for non-deposit or delayed deposit of a monthly instalment.
- Minimum Deposit: No data found
- Maximum Deposit: No limit
- Tenure: 1 year to 10 years
- Interest Rate: 6.30% to 7.00%
- Eligibility Criteria: NRI/ OCIs/ PIOs
13. NRO Fixed Deposit
An NRO FD scheme is suitable for NRIs who wish to earn interest on income generated from sources in India. This plan offers flexible tenure, along with the facility of premature withdrawal of the deposit, but with a penalty. The interest earned on such deposits is taxable in India, and a TDS deduction is applicable at the source.
- Minimum Deposit: ₹10,000 (for FDR in urban and metro branches), ₹5,000 (in semi-urban and rural branches) and ₹5000 (for senior citizens)
- Maximum Deposit: No limit
- Tenure: 7 days – 10 Years
- Interest Rate: 3.00% to 7.00%
- Eligibility Criteria: NRI
14. NRO Flexi Fixed Deposit
A non-resident individual may open this flexible Union Bank FD account if they wish to get the dual benefits of a savings account and an FD. You can avail the sweep-in/sweep-out facility with this account, that too, on a daily basis. However, you are not permitted to take a loan, lien or overdraft in this scheme. TDS would be applicable to the deposit in the linked FD Flexi account.
- Minimum Deposit: ₹50,000 (in savings account)
- Maximum Deposit: No limit
- Tenure: 46 days – 1 year
- Interest Rate: 4.05% to 6.30%
- Eligibility Criteria: NRI/ OCIs/ PIOs
15. NRO Cumulative
With this fixed deposit scheme of Union Bank, your deposit grows faster due to compound interest calculation. Your accrued interest is paid with the principal deposit on maturity or one month after depositing the last instalment, whichever is later. Your monthly minimum instalment amount is ₹50, and there is no maximum limit.
- Minimum Deposit: No data found
- Maximum Deposit: No limit
- Tenure: 6 months – 10 years
- Interest Rate: 5.25% to 7.00%
- Eligibility Criteria: NRI/ OCIs/ PIOs
16. Foreign Currency Non-Resident (FCNR) Fixed Deposit
Individuals who want to keep their deposits in their preferred foreign currency can open an FCNR FD account. FCNR(B) deposits are now accepted in six different currencies: USD, GBP, JPY, EURO, AUD, and CAD.
One significant advantage of this account type is that it alleviates concerns about currency volatility. Both the principal and interest sums are completely and unrestrictedly repatriable. This account can also be held jointly with a non-resident or resident individual.
- Minimum Deposit: No data found
- Maximum Deposit: No limit
- Tenure: 1 year – 5 years
- Interest Rate: 3.80% – 5.25% (applicable to USD)
- Eligibility Criteria: NRI/ OCIs/ PIOs
17. Resident Foreign Currency (RFC) Fixed Deposit
This Union Bank of India FD scheme applies to Indian nationals who have lived abroad for not less than a year and became Indian residents on or after April 18, 1992. Foreign currencies considered in this plan are USD, GBP and EURO. Both joint and individual account opening facilities are available, and TDS is applicable on the interest earned.
- Minimum Deposit: No data found
- Maximum Deposit: No limit
- Tenure: 6 months – 3 years
- Interest Rate: 4.05% – 5.25% (applicable on USD)
- Eligibility Criteria: NRI
Fixed Deposit is a lucrative investment scheme that you can choose to invest your money in. Union Bank FDs come with a low minimum balance and flexible tenure, which gives you a great opportunity to save your money on a monthly, quarterly or annual basis.
Union Bank of India’s fixed deposit rates are quite attractive, enabling you to earn significant returns on lump sum deposits. Facilities available for senior citizens also make the fixed deposit schemes attractive. However, premature closure of an FD account can attract penalties. Hence, it is always advised to assess your investment objective before opening an FD account.
FAQs
For retail term deposits (less than Rs. 2 crores) with a tenure of 7 days or above, a penalty of 1% is charged on the interest paid for the tenure of the deposit stayed in the bank or the contracted date, whichever is lower.
The FD interest rate ranges between 3.50% – 7.50% for senior citizens.
The maximum interest rate applicable for a general citizen FD account of Union Bank of India is 7.00%.
Yes, Union Bank FD accounts are subject to a nomination policy. A nomination can only be made in support of one person. Also, a resident can nominate an NRI for the FD.
Yes, you can take out a loan against your fixed deposit account. However, if you have a tax savings FD account scheme, you cannot take a loan against it.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
