The Monthly Plus Scheme of Union Bank of India is a unique recurring deposit scheme which allows customers to manage their investments within the scheme tenure. Under this scheme, the interest rates range from 5.25% to 7.00%, while senior and super-senior citizens get additional interest over the applicable rates.
Here is a comprehensive guide on Union Bank RD interest rate and other relevant details that you need to know before investing in this scheme. Keep reading to learn more.
| Minimum Investment | ₹100 (and in multiples of ₹100) |
| Tenure | 6 months to 60 months (in multiples of 1 month) |
| Union Bank RD Rates for General Citizens | 5.25% to 7.00% |
| RD Rates for Senior Citizens | 5.75% to 7.50% |
| RD Rates for Super Senior Citizens | 6% to 7.75% |
| Loan Against Union Bank RD | Available |
| TDS on RD | Available |
Union Bank RD Interest Rates 2024
Find the latest Union Bank RD interest rates for general, senior and super-senior citizens in the table given below.
| Tenure | General Citizens | Senior Citizens | Super Senior Citizens |
| 6 months to less than 12 months | 5.25% | 5.75% | 6.00% |
| 12 months | 6.30% | 6.80% | 7.05% |
| More than 1 year to less than 398 days | 6.30% | 6.80% | 7.05% |
| 399 days | 7.00% | 7.50% | 7.75% |
| 400 days to 2 years | 6.30% | 6.80% | 7.05% |
| More than 2 years to less than 3 years | 6.30% | 6.80% | 7.05% |
| 3 years | 6.50% | 7.00% | 7.25% |
| More than 3 years to 5 years | 6.70% | 7.20% | 7.45% |
| More than 5 years to 10 years | 6.70% | 7.20% | 7.45% |
Features of Union Bank Recurring Deposit Interest Rates
Besides attractive Union Bank RD rates, the Monthly Plus recurring deposit scheme comes with the following features and benefits.
- Investors can set a core amount while starting the scheme and deposit it as their initial instalment.
- An individual can make multiple deposits in a month.
- Investors can change their monthly instalments as per their wish.
- Investment in this RD scheme can be done with an amount as low as ₹100.
- The maximum deposit amount in a month can be ₹1,00,000 or 10 times that of the core amount, whichever is lower.
- No penalties for delayed instalments.
How to Open Union Bank RD Account Online?
To open an RD account with Union Bank online, follow the steps given below.
- Step 1 – Visit the online net banking portal of Union Bank of India and log in using your registered credentials. If you are not a registered customer, visit the nearest branch and submit the net banking activation form.
- Step 2 – Click on the ‘E-Recurring Deposit’ option from the main page. An RD account opening form will be displayed on the screen.
- Step 3 – Enter all the required details such as your particulars, bank account details, RD amount and tenure.
- Step 4 – Tap on the box if you are applying for senior citizen Union Bank RD interest rates.
- Step 5 – Click on ‘Proceed’.
The bank will deduct the first instalment from your savings account and notify you upon successful account opening.
How to Open Union Bank RD Account Offline?
If you wish to open a Union Bank RD account offline, follow the given below step-by-step guide.
- Step 1 – Visit your nearest Union Bank of India branch.
- Step 2 – Ask for an RD form and fill out all the details.
- Step 3: Attach the required documents with the form and submit it to a bank representative.
- Step 4: Deposit the first instalment of your RD investment, either by cash or cheque.
The bank will process your application and activate your RD account.
How to Calculate Union Bank RD Interest Rates?
You can easily find out the maturity amount of your recurring deposit by choosing a tenure, its applicable Union Bank RD interest rate and your desired investment amount. Here are two ways of calculating it.
Using the Recurring Deposit Calculation Formula
A = P*(1+R/N)^(Nt)
Here:
- A is the maturity amount.
- P is the monthly RD instalment.
- N is the number of compoundings within a year.
- R is the applicable rate of interest.
- t is the tenure.
Let’s take an example to help you understand better.
You decide to start an RD account with a monthly instalment of ₹15,000 for 3 years at 6.50% per annum.
In that case,
P = ₹15,000
R = 6.50%
N = 4 (as there are 4 compoundings in a year)
T = 36 months (3 years)
By using the formula,
A = 15000 x (1 + 6.50/4)^4×36 = ₹5,97,367.
Using an Online RD Calculator
Here’s how you can use an online RD calculator to determine the maturity value of your RD investment.
- Step 1 – Enter your monthly investment amount.
- Step 2 – Choose your desired tenure.
- Step 3 – Look up the latest Union Bank RD interest rates and set the rate of interest.
The calculator will display your total interest income, total deposit amount and maturity value.
Eligibility Criteria for Union Bank RD Account
As per the regulations of Union Bank, the following entities are eligible to open an RD account.
- Resident Individual (single or joint account)
- Minors under their natural guardians or by guardians appointed by a court of law
- Hindu Undivided Families (HUFs)
- Trusts
- Corporates
- Institutions
- Partnerships
- Proprietorships
Documents Required for Union Bank RD Account
If you already have a savings account at Union Bank, you do not need to submit any documents for opening an RD account with the bank. In case you do not have one and wish to benefit from the Union Bank RD interest rates, here are the documents which you need to submit.
- Proof of Identity
- Aadhaar Card
- Voter ID
- PAN Card
- Driving Licence
- Proof of Address
- Lease or Rent Agreement
- Electricity/Telephone Bill
- Bank Statement
- Passport
Types of Union Bank RD Accounts
Union Bank provides two types of recurring deposit schemes.
1. Regular Monthly Plus
The Regular Monthly Plus is the most popular type of RD scheme offered by Union Bank of India to resident Indians. This RD scheme allows existing and new customers of the bank to invest and manage their savings by making monthly contributions as per their financial objectives.
- Minimum Deposit: ₹100
- Maximum Deposit: ₹1,00,000
- Tenure: 6 months to 60 months
- Interest Rate: 5.25% to 7.75%
- Eligibility: Indian residents
2. Union Monthly Plus NRO
For Non-Resdient Indians (NRIs), the Union Monthly Plus NRO RD scheme is a golden opportunity to invest their foreign earnings in India and gain interest income. Apart from the high-yielding income, this scheme comes with nomination, joint account opening and loan facilities. However, it does not provide any additional interest to senior citizen NRI applicants.
- Minimum Deposit: ₹100
- Maximum Deposit: ₹1,00,000
- Tenure: 6 months to 60 months
- Interest Rate: 5.25% to 7.00%
- Eligibility: NRIs
Union Bank RD Premature Withdrawal Rules
For premature withdrawal of RD accounts, the applicable interest rate will be based on the tenure for which the deposit has remained with the bank.
Union Bank RD Penalty
A key interesting feature of the RD schemes offered by Union Bank of India is that these come with zero penalty upon closing the RD account prematurely. Moreover, the bank charges no penalty in case of delayed instalment.
How to Close Union Bank RD Account Offline?
Here is a stepwise process you need to follow if you want to close your Union Bank of India recurring deposit account offline.
- Step 1 – Visit your nearest Union Bank of India branch and ask for an RD account closure form.
- Step 2 – Fill in all the details and attach the required documents.
- Step 3 – Submit your RD receipt.
The bank will process your application, close your RD account and transfer the funds to your savings account.
TDS on Union Bank RD
The recurring deposit in Union Bank of India attracts a 10% Tax Deducted at Source (TDS) if the interest income exceeds ₹10,000 within a financial year.
Loan Against Union Bank Recurring Deposit
Union Bank of India allows its customers to apply for loans against their recurring deposits. Thus, if you are in urgent need of cash, you can avail this facility instead of going for premature withdrawal of your RD investment.
Final Word
With Union Bank’s Union Monthly Plus scheme, building your savings has been easier than ever before. Moreover, the attractive and competitive Union Bank RD interest rate makes it a worthwhile investment for the short and medium term.
However, keep in mind that interest rates are dynamic and can change without prior notice. Thus, make sure to always verify the latest rates and other terms and conditions before opening an RD account.
FAQs
No, deposits in the Union Bank RD accounts can be only made in multiples of ₹100.
For each Union Bank RD account, there can be only one nominee. Resident account holders can nominate NRIs as their nominees but the repatriation of funds will occur after RBI’s consent. In the case of minor RD account holders, their guardians can file a nomination on their behalf.
No, Union Bank does not provide auto renewal facilities for its RD accounts. After the scheme matures, the bank will transfer the entire RD investment to the customer’s savings account.
The interest calculation of Union Bank RDs occurs on a daily product basis, while it is credited to customers’s accounts quarterly.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
