Union Bank offers Fixed Deposit (FD) options with a maturity period of 7 to 10 years and interest rates ranging from 2.75% to 6.00%. Under Union Bank of India's new FD rate structure, the interest rates for these specific tenures vary for senior citizens, general citizens, and super senior citizens. For senior citizens, the additional interest rate applicable to their deposits is 0.50% higher than the general rates mentioned above. Super senior citizens receive an interest rate that is 0.25% higher than the rates applicable to Union Bank's senior citizen FD rates. Under Union Bank's current FD rates, the bank offers a maximum interest rate of 6.60% to general citizens. Continue reading for more information regarding Union Bank's new Fixed Deposit rates.

Summary

Term Wise Union Bank Fixed Deposit Interest Rates

Here are the term-wise Union Bank fixed deposit rates:

Short-term: Short-term fixed deposit at Union Bank ranges between 7 days and 1 year with an interest rate of 2.75% to 6.30% for deposits below ₹3 crore under the current Union Bank of india FD rates.

Medium-term: Medium-term fixed deposits have a tenure greater than 1 to 5 years with Union Bank fixed deposit rates offering an interest rate of 6.00% to 6.60%. This term offers the highest interest rate of 6.60% for above 3 years under the latest Union Bank  FD rates.

Long-term: Union Bank offers an interest rate of 6.00% for long-term fixed deposits with a tenure ranging from more than 5 years to 10 years as per updated Union Bank  of India FD rates.

Benefits of Union Bank Fixed Deposits

The benefits of Union Bank  fixed deposit rates and Union Bank  FD rates are as follows:

• Assured and Stable Returns: Union Bank FDs offer guaranteed and predictable returns under stable Union Bank of India FD rates, ensuring your money grows steadily without any impact from market volatility.

• Attractive Interest Rates: With competitive Union Bank FD rates across different tenures, Union Bank provides rewarding returns for both short-term and long-term deposits. The Union Bank senior citizen FD rates also offer additional benefits for older investors.

• High Safety and Trust: As a leading public sector bank backed by the Government of India, Union Bank ensures maximum safety for your deposits while offering reliable Union Bank FD rates.

• Flexible Tenure Options: You can choose from a wide tenure range, from as short as 7 days to as long as 10 years, while benefiting from flexible Union Bank  FD Interest rates aligned with your financial goals.

• Suitable for Every Investor: Union Bank FDs cater to a diverse set of customers, including residents, senior citizens, NRIs, and businesses, with dependable Union Bank fixed deposit interest rates and special Union Bank senior citizen FD rates.

Eligibility to Avail Union Bank FD Interest Rates

The following entities can open a fixed deposit with Union Bank to benefit from Union Bank  FD rates and Union Bank  fixed deposit rates:

• Resident Indians holding a single or joint account
• Minors under guardianship
• Hindu Undivided Families (HUF)
• Associations, societies and clubs
• Institutions and agencies
• Non-resident Indians
• Private and public limited companies

Documents Required to Avail Union Bank Fixed Deposit  interest Rates

You need the documents mentioned below to get Union Bank  FD rates and Union Bank  of India FD rates:

• Proof of identity including PAN card and Aadhar card
• Address Proof includes passport/driving license/voter ID card
• Passport-sized Photograph

Premature Withdrawal of Union Bank Fixed Deposit

Union Bank charges a 1% penalty on the effective interest rate for a principal below ₹3 crore if withdrawn after 7 days and before maturity under applicable Union Bank fixed deposit rates. However, if you prematurely liquidate your FD 7 days before the bank levies any penalty under Union Bank  FD rates. The interest rate will be the effective interest rate for the tenure you keep the fixed deposit.

Tax on Union Bank Fixed Deposit Interest

You can book a tax-saving fixed deposit with Union Bank under the available Union Bank of India FD rates to save up to ₹1.5 lakh in a financial year under Section 80C. Notably, interest on fixed deposits is subject to taxation under the Income Tax Act, 1961, including interest earned through Union Bank fixed deposit rates.

If the total interest earned in a financial year exceeds ₹50000 for regular and ₹1,00,000 for senior citizens, a 10% TDS is applied when PAN details are provided. Without PAN, a 20% TDS applies. To avoid TDS, submit Form 15G (or Form 15H for senior and super senior citizens benefiting from Union Bank senior citizen FD rates).

Union Bank FD Calculator

Calculate your returns from Union Bank fixed deposit by using the Union Bank  FD rates and Union Bank  fixed deposit rates in the Union Bank  FD Calculator given below:

Why Should You Book an FD with Stable Money?

Stable Money’s partnered banks and NBFCs offer interest rates up to 8.30%, among the highest in the market for FDs. Booking through Stable Money eliminates the need for a savings account. After booking, you will receive a fixed deposit certificate from the bank. Moreover, you can access your FD investment 24/7, and all deposits are insured under DICGC (Deposit Insurance Credit Guarantee Corporation) up to ₹5 lakh, in line with RBI guidelines while comparing different Union Bank  FD rates and other bank FD options.

Download the Stable Money App now!