• Investment
  • Car
  • Bike
  • Taxi
  • Term Life
  • Health
  • Travel

Union Bank of India FD Rates

Founded on 11th November, 1919, Union Bank of India is headquarters in Mumbai. Throughout its 96 years of operations, it has expanded in leaps and bounds in India. Currently, it makes its presence felt via 4,200+ branches across the country. With a robust product range of Savings and Term Deposits, as well as refinance and borrowings from abroad, it boasts of a customer base of over 5.7 crores. Similarly, Fixed Deposits by the Union Bank of India are designed to cater to an extensive range of investment objectives of interested depositors.

Union Bank of India FD Rates 2019

Note: All following information has been sourced from the official website of Union Bank of India

Union Bank FD Rates: Deposits < Rs. 2 crore

Interest rates w.e.f. 27/02/2019 (percentage p.a.)

Tenures< Rs. 2 cr
7 days – 14 days5.00
15 days – 30 days5.00
31 days – 45 days5.00
46 days – 90 days5.50
91 days - 120 days6.25
121 days to 179 days6.25
180 days6.50
181 days to <10 months6.50
10 months to 14 months6.75
>14 months to 3 years6.60
>3 years - 5 years6.70
>5 years - 10 years6.70
  • Union Bank of India FD rates are subject to change. Hence, depositors have to ascertain the rates applicable on the date of starting a FD from the website.
  • Aggregate value of deposits placed by a depositor on the day for an identical tenor will be taken for deciding applicable interest rate.
  • For Union Bank of India FD rates for deposits of Rs. 2 crore and above, interested individuals have to visit any branch for assistance.
  • Interest is calculated on daily product basis and is credited on quarterly basis in the months of April, July, October and January every financial year. The following are the Saving Bank deposits rates for Union Bank of India FDs w.e.f. 21.08.2017:
  • For balance up to Rs. 25 lakh 3.50% p.a.
  • For balance above Rs. 25 lakh 4.00% p.a.

Motor Accident Claims Annuity (Term) Deposit Account (MACAD)

Scheme Features

Scheme FeaturesParticulars / Details
SchemeScheme Code: MACAD Scheme Name: Motor Accident Claims-Ann.
PurposeOne time lump sum amount, as decided by the Court/Tribunal, deposited to receive the same in Equated Monthly Instalments (EMIs), comprising a part of the principal amount as well as interest.
EligibilityIndividuals including minors through guardian in single name.
Mode of HoldingSingly
Type of accountMotor Accident Claims Annuity (Term) Deposit Account (MACAD)
Deposit AmountMaximum: No Limit Minimum – Based on minimum monthly annuity Rs. 1,000 for the relevant period.
Tenure36 months to 120 months In case the period is less than 36 months, normal FD will be opened. MACAD for longer period (more than 120 months) will be booked as per direction of the Court.
Rate of interestPrevailing rate of interest as per tenure
Annuity PaymentBranches have to compulsorily open MACT Saving Bank account before opening of MACAD annuity deposit account. Annuity payment should be credited in MACT Saving Bank account only.
Receipts/ AdvicesNo Receipts will be issued to depositors. Passbook will be issued for MACAD.
Loan FacilityNo loan or advance shall be allowed.
Nomination facilityAvailable. MACAD shall be duly nominated as directed by the court.
Premature PaymentPremature closure or part lump sum payment of MACAD during the life of the claimant will be made with permission of the court. However, if permitted, the annuity part will be reissued for balance tenure and amount, if any, with change in annuity amount. If balance tenure will remain less than 36 months then MIS (Fixed deposit) account to be opened.
Tax deduction at sourceInterest payment is subject to TDS as per Income Tax Rules. Form 15G/15H can be submitted by the Depositor to get exemption from tax deductions. The annuity amount on monthly basis net of TDS, will be credited to the MACT Savings Bank account.

Features of the Union Bank of India FDs

The features that are applicable to most FD schemes of Union Bank of India are as below:

Minimum amount

Rs. 10,000 for FDR in metro and urban branches and Rs. 5,000 in rural and semi-urban branches, and for senior citizens the minimum amount is Rs. 5,000.

Minimum amount criteria is not applicable to subsidy kept under government-sponsored schemes, margin money, earnest money and court attached/ordered deposits.

Payment of Interest (Subject to applicable TDS)

Interest will be paid on quarterly basis. In case the date of interest payment falls on holidays, the due date for payment is the next working day.

Payment and Renewal of Deposits Before Maturity

Depositors may request repayment of their deposits before maturity. Repayment of term deposits before maturity is permissible. In the event of the FDR being closed before completing the original term of the deposit, interest will be paid at the rate applicable on the date of deposit, for the period for which the deposit has remained with the bank, the contracted rate whichever is lower without charging any penalty for premature closure. No interest will be paid on term deposit which remains with the bank for less than 7 days. In case the depositor desires to renew the deposit by seeking premature renewal, the deposit is renewed for a period longer than the balance period of the original deposit.

Provision for nomination

Nomination facilities are available

Rate of Interest

Rate of interest differs from time to time, depending upon tenure of the deposits and as and when the bank changes the rate.

Senior citizens are offered additional interest of 0.50% for deposits placed for 1 year and above period.

NON-CALLABLE TERM DEPOSIT (DOMESTIC): Deposits of Rs. 1 Cr & Above

The applicable deposit amount for this scheme is Rs. 1 crore and above for single deposits only. This scheme fetches higher rate of interest as compared to other regular deposits of Rs. 1 crore and above.

Name of the ProductUnion Non-callable Term Deposit (Domestic)
Amount of DepositsRs. 1 crore & above
Type of Depositsa. Deposit Reinvestment Certificate b. Fixed Deposit Receipt c. Short Term Deposit Receipt
Tenor of Deposits61 days to 3 years
Auto-RenewalNot allowed
ROIDecided by bank
Premature ClosureNot allowed
Availability of Loan/OverdraftPermitted as per existing rules of bank The deposits may be accepted as security for fund based & non fund based loans as per prevailing guidelines of the bank.

UNION MONTHLY PLUS: Deposits between Rs. 100 and Rs. 1 lakh

Recurring Deposit Scheme, with flexibility of Step Up and Step Down options, with monthly instalment.

Salient features

  • The Scheme is available to Individuals/Institutions/Corporates/Proprietorship/Partnership/Trust/HUF etc.
  • The customer will have to select the "Core Amount", at the time of opening the account and deposit the same initially.
  • Minimum core amount is Rs. 100 and maximum is Rs. 1 lakh.
  • The period of deposit will be from 6 month to 60 months, in multiple of one month.
  • Rate of interest on this scheme will be as per the term deposit rate applicable for the period.
  • Interest will be calculated on daily product basis.
  • It offers flexibility of depositing monthly installment amount, by way of Step Up and Step Down options.

Step Up option

  • Depositor can increase (Step Up) the monthly installment amount up to 10 times the core amount during any month. The installment can also be deposited one or more times during a month, subject to maximum ceiling of 10 times core amount.

Example: Core amount Rs.1,000

Customer can deposit maximum up to Rs. 10,000 per month

  • For accounts opened on or after 01.05.2009, maximum amount that can be remitted during a month including step up is limited to Rs. 1 lakh.

Step Down Option

  • After stepping up the installment amount, a customer can also reduce the same (Step Down), in any subsequent month/s, but the same should not be less than the core amount.
  • Premature closure is allowed.
  • No penalty will be charged in case of premature closure.
  • Similarly, no penalty will be levied on delayed installment.
  • Nomination facility is available, like other Deposit Scheme.
  • Loan facility is permitted up to 75% of the deposit amount at the time of availing loan at 2% ODR.

As per the latest changes in the Income Tax Act, 1961, TDS will be applicable on the interest on Union Monthly Plus Deposit Account.

Deposit RE-Investment Certificate

Salient Features

  • This is an ideal scheme for investing a lump sum amount where interest is compounded quarterly, and paid along
  • with the principal amount invested.
  • Deposits can be accepted for any period from 6 months to 120 months.
  • Minimum amount of deposit will be Rs. 100 in rural/semi-urban centers and Rs. 500 in urban/metro Centers.
  • Interest at applicable rate for the period for which the deposit is kept, is automatically reinvested at quarterly intervals.
  • As the interest is compounded, the amount invested multiplies and matures into an attractive lump sum, thus, doubling over a period of time. (Please check with the nearest branch for the latest table available on maturity values).

Provision for nomination

Nomination facilities are available

FAQs on Union Bank of India FD Rates

What is the interest rate that Union Bank of India Fixed Deposit offers on senior citizens FDs?

Senior citizens are offered an additional interest of 0.50 % over and above the interest rates for Union Bank of India FDs for a tenure of 1 year and above.

Can I make alterations to the tenure of my ongoing Union Bank of India Fixed Deposit?

Once you have chosen your tenure at the time of starting a FD at the Union Bank of India, you cannot alter it.

How to open a Union Bank of India Fixed Deposit account without a PAN card?

Yes, you can open a FD with the Union Bank of India by submitting a filled up Form 16 as a substitute for a PAN card.

What is the highest interest rate that is offered by the Union Bank of India Fixed Deposit?

The highest FD rate offered by the Union Bank of India is 6.75% for a tenure between 10 months to 14 months.

FD tenure options with Union Bank of India Fixed Deposit?

The tenure options for Union Bank of India Fixed Deposits are:

  • 7 days – 14 days
  • 15 days – 30 days
  • 31 days – 45 days
  • 46 days – 90 days
  • 91 days - 120 days
  • 121 days to 179 days
  • 180 days
  • 181 days to 10 months
  • 10 months to 14 months
  • 14 months to 3 years
  • 3 years - 5 years
  • 5 years - 10 years

What is the minimum amount required to start a Union Bank of India Fixed Deposit account?

The minimum amount required to start a Fixed Deposit at the Union Bank of India is Rs. 50, as applicable for the Cumulative Deposit Scheme offered by the Union Bank of India.

What is the eligibility criteria to open a Union Bank of India Fixed Deposit account?

A resident of India belonging to the following categories is eligible for opening a Fixed Deposit at the Union Bank of India, as per RBI guidelines:

  • Single accountholder
  • Individuals who are joint accountholders
  • Illiterate or blind individuals
  • Purdanasheen ladies
  • Minors
  • Associations
  • Trusts
  • Clubs
  • Societies

Can I open my Union Bank of India Fixed Deposit without a PAN card?

Instead of submitting a PAN card, you can submit a filled up Form 16 while starting a Fixed Deposit account with the Union Bank of India.

Leave a rating!
5.0 (1 votes)