Union Bank Of India Fixed Deposit Interest Rates (as on 2024)
Union Bank of India FD Interest Rates (Below Rs.3 Crores) w.e.f. 02/08/2024
| Tenors | Interest Rate p.a. (%) (General) | Interest Rate p.a.(%) (Senior Citizen) |
|---|---|---|
| 7-14 Days | 3.50 | 4.00 |
| 15-30 Days | 3.50 | 4.00 |
| 31-45 Days | 3.50 | 4.00 |
| 46-90 Days | 4.50 | 5.00 |
| 91-120 Days | 4.80 | 5.30 |
| 121-180 Days | 5.00 | 5.50 |
| 181 Days to < 332 days | 6.35 | 6.85 |
| 333 days | 7.40 | 7.90 |
| 334 days to < 1 year | 6.35 | 6.85 |
| 1 year | 6.80 | 7.30 |
| > 1 year to 398 Days | 6.80 | 7.30 |
| 399 Days | 7.25 | 7.75 |
| 400 Days to 2 year | 6.60 | 7.10 |
| > 2 year to 996 days | 6.60 | 7.10 |
| 997 days | 6.40 | 6.90 |
| > 998 days to less than 3 Years (except for 999 days @ 6.40) | 6.60 | 7.10 |
| 3 years | 6.70 | 7.20 |
| > 3 Year to 5 years | 6.50 | 7.00 |
| > 5 Years to 10 Years | 6.50 | 7.00 |
Union Bank of India FD Interest Rates (Rs.3 Crores & above)
For Fixed Deposit amounting to Rs.3 Crores and above, please contact nearest Union Bank of India Branch.
Union Bank of India Tax Saver FD Interest Rates w.e.f. 02/08/2024
| Tenors | Interest Rate p.a. (%) (General) | Interest Rate p.a.(%) (Senior Citizen) |
|---|---|---|
| 5 years - 10 Years | 6.50 | 7.00 |
Union Bank of India NRO FD Interest Rates (Below Rs.3 Crores) w.e.f. 02/08/2024
| Tenors | Interest Rate p.a.(%) |
|---|---|
| 7-14 Days | 3.50 |
| 15-30 Days | 3.50 |
| 31-45 Days | 3.50 |
| 46-90 Days | 4.50 |
| 91-120 Days | 4.80 |
| 121-180 Days | 5.00 |
| 181 Days to < 332 days | 6.35 |
| 333 days | 7.40 |
| 334 days to < 1 year | 6.35 |
| 1 year | 6.80 |
| > 1 year to 398 Days | 6.80 |
| 399 Days | 7.25 |
| 400 Days to 2 year | 6.60 |
| > 2 year to 996 days | 6.60 |
| 997 days | 6.40 |
| > 998 days to less than 3 Years (except for 999 days @ 6.40) | 6.60 |
| 3 years | 6.70 |
| > 3 Year to 5 years | 6.50 |
| > 5 Years to 10 Years | 6.50 |
Union Bank of India NRE FD Interest Rates (Below Rs.3 Crores) w.e.f. 02/08/2024
| Tenors | Interest Rate p.a. (%) (General) |
|---|---|
| 1 year | 6.80 |
| > 1 year to 398 Days | 6.80 |
| 399 Days | 7.25 |
| 400 Days to 2 year | 6.60 |
| > 2 year to 996 days | 6.60 |
| 997 days | 6.40 |
| > 998 days to less than 3 Years (except for 999 days @ 6.40) | 6.60 |
| 3 years | 6.70 |
| > 3 Year to 5 years | 6.50 |
| > 5 Years to 10 Years | 6.50 |
Union Bank of India Fixed Deposit
Union Bank of India has a range of Fixed Deposits (FDs) products at competitive interest rates with various tenures and lots of other benefits. Union Bank of India offers Fixed Deposit schemes for a short term period and long term period.
It is very easy to open a Union Bank of India FD either online through its website or by visiting its nearby branch.
Features & Benefits: Union Bank of India Fixed Deposit
- Competitive interest rates are offered with flexible FD tenures to suit your investment plan.
- FD account can be opened online or by visiting your nearest Union Bank of India branch.
- Minimum Amount of FD: Rs 1000.
- Maximum Amount of FD: No limit
- FD Tenures: 7 days to 10 years
- Different interest payout options such as monthly, quarterly, etc.
- Loan/ Overdraft against FD facility is available upto 90% of the FD amount.
- Easy and fast liquidity options are available.
- Nomination facility is available.
- Part withdrawal facility and auto-renewal facilities
- Senior citizens can enjoy higher interest rate as compared to regular citizens.
- NRE, NRO and FCNR deposit facility is available.
Union Bank of India FD Calculator
Fixed Deposit Calculator
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Eligibility for Union Bank of India Fixed Deposit
Any of the following persons can invest in fixed deposits (FD):
- Individual
- Minor
- HUF
- Proprietary Firm
- Partnership Firm
- Limited Liability Partnership (LLP)
- Company
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Local Authority
- Trust
- Non-Resident Indian (NRI)
- Registered Society
Documents Required for Union Bank of India Fixed Deposit
Following Documents are required for opening a Fixed Deposit Account
| Category | Documents Required |
|---|---|
| Individual, HUF, Proprietor |
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| Partnership Firm |
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| Trust |
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| Associations, Clubs |
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| Company |
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Types of Union Bank of India Fixed Deposit
- UNION SHORT DEPOSIT RECEIPT: Deposits for a period of 7 days and above but not exceeding 179 days are classified as Short Deposits. Minimum amount that can be deposited under this scheme is Rs.5 lacs for a period of 7-14 days.
- UNION FIXED DEPOSIT RECEIPT: 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 will be Rs. 5,000.
- UNION MONTHLY INCOME SCHEME: This scheme features interest payable at the contracted rate every month, on the fixed deposit which is accepted for any period from one year to ten years. Interest is paid monthly at the discounted value. The deposit can be placed for 6 months to 120 months.
- UNION DEPOSIT RE-INVESTMENT CERTIFICATE (DRIC): This is an ideal scheme for investing a lump sum amount where interest is compounded quarterly and paid along with the principal amount invested. Interest at applicable rate, for the period for which the deposit is kept, is automatically reinvested at quarterly intervals. Minimum amount of deposit will be Rs.100 in Rural/ Semi-urban centres and Rs.500 in Urban/ Metro centres. Deposits can be accepted for any period from 6 months to 120 months.
- UNION TAX SAVER: Exemption under section 80 C of Income Tax Act can be claimed by the depositor in case of single depositor or the first holder in case of joint depositors, within eligible investments. FD amount is minimum of Rs.5,000 and in multiples of Rs.1,000 thereof and maximum limited to Rs.1,50,000 in a financial year. Deposit will be accepted for a minimum period of 5 years and maximum period of 10 years. It cannot be encashed before the expiry of 5 years from the date of its receipt.
- UNION CAPITAL GAINS EXEMPTION DEPOSIT SCHEME: This FD offers saving tax on capital gains, if such capital gains are submitted in the account before filing tax returns and are then utilized within a specified time period. Two types of deposit accounts can be opened under this Scheme.
- UNION EASY TAX SAVER DEPOSIT SCHEME: This scheme gives you the flexibility to invest in Tax Saver Fixed Deposits through monthly instalments (Standing Instruction/SIP), in lump-sum, or as and when you have surplus funds for investing. The amount so invested is eligible for exemption under 80C. This scheme enables you to invest any number of times upto Rs.1,50,000 in the F.Y.
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.
Penalty on Premature Withdrawal of Union Bank of India FD
- Union Bank of India allows partial or complete withdrawal of the deposit amount before its maturity.
- Bank charges a penalty which is communicated to you at the time of opening of FD Deposit.
- Penalty Details
- For Term Deposit of below Rs. 1 crore: No Penalty
- For Term Deposit of Rs. 1 crore and above: 1% on interest rate applicable for the period the deposit has remained with the Bank.
NRI Fixed Deposit accounts offered by Union Bank of India
Union Bank of India offers many fixed deposit schemes specially designed for its NRI customers. In these schemes, NRI customers can deposit money either in Indian currency or in foreign currency depending on their status and preference. The bank also offers different interest rates for NRI fixed deposits. Following types of NRI fixed deposits are offered by Union Bank of India:
| NRI Account Type | Details |
|---|---|
| NRE Account (Non Resident External Account) | Account is maintained in Indian currency |
| NRO Account (Non Resident Ordinary Account) | This either be funded by conventional payment or through traveller's cheques |
| FCNR Account (Foreign Currency Non Resident Account) | It is maintained in foreign currency |
| RFC Account (Resident Foreign Currency Account) | In this, customer to maintain the account in foreign currency even after returning to India permanently |
How and When to Apply for Exemption on TDS?
- If your total taxable income during the financial year is not likely to exceed the maximum amount which is not chargeable to income tax, then you can submit self declaration in Form 15G or 15H (for senior citizens only) to the bank to ensure non deduction of tax at source.
- The declaration has to be given in prescribed format only wherein the valid 10 digit PAN is also required.
- It may be noted that if the interest payable by the bank during the financial year on time deposits is likely to exceed the maximum amount which is not chargeable to income tax, then the Form 15G submitted will be treated as invalid.
- In case of Senior Citizens, if the interest payable by the bank during the financial year on time deposits is likely to exceed the maximum amount which is not chargeable to tax and deduction(s) under chapter VIA, if any, for which declarant is eligible, then the Form 15H submitted will be treated as invalid.
You may refer to following table for more details:
| Category | Name of Form | Exemption limit (Male) | Exemption limit (Female) |
| Individuals(upto age of 60) | Form 15G | Rs.2,50,000 | Rs.2,50,000 |
| HUFs, Associations, Trusts | Form 15G | Rs.2,50,000 | Rs.2,50,000 |
| Individual (age 60 years and above but less than 80 years) | Form 15H | Rs.3,00,000 | Rs.3,00,000 |
| Individual (age 80 years and above) | Form 15H | Rs.5,00,000 | Rs.5,00,000 |
| Others | Exemption certificate issued by Income Tax Officer | As per Exemption Certificate | As per Exemption Certificate |
Union Bank of India Fixed Deposit FAQ
What interest payment options are available under Term Deposit with Union Bank of India?
Interest payment on Monthly (discounted), Quarterly and Annual rest is available under Union Bank of India Term Deposit.
Does the Union Bank of India offer any special interest rate for Senior Citizen on its Term Deposits?
Yes, an additional interest rate for Senior Citizen is 0.50% for deposits from 1 year and above for FD amount less than Rs. 1 crore.Yes, an additional interest rate for Senior Citizen is 0.50% for deposits from 1 year and above for FD amount less than Rs. 1 crore.
When is TDS deducted?
TDS is done at the time of credit of interest to account, if the total interest payable to the customer during the financial year is likely to exceed the limit of Rs.10,000.
At what rate is TDS deducted?
TDS is deducted at rates as required by section 194A (Resident) and section 195 (NRO) of IT Act 1961 for the following category of account holders:
- Resident Indians (Individuals, Trusts, Associations, HUFs, Firms Indian Companies): 10% plus applicable surcharge and education cess
- Non-Resident Indians: 30% plus applicable surcharge and education cess
Can I apply for exemption on TDS?
Yes, you can apply for exemption on TDS, in case your total taxable income during the financial year is not likely to exceed the maximum amount which is not chargeable to income tax. For this, you need to submit self declaration in Form 15G or 15H (for senior citizens only) to the Bank to ensure non deduction of tax at source, in the beginning of respective financial year.
Tax Implications and TDS in FD
- An amount invested in fixed deposits in a scheduled bank is eligible for tax deduction under section 80C. Only the interest earned on the deposit is taxable.
- Tax will be deducted at source (TDS), if the interest income on a fixed deposit per annum exceeds Rs.10,000
- A person can exempt from TDS, if he/ she submits Form 15G/ Form 15H in the beginning of each financial year
Factors affecting Fixed Deposit Interest Rates
- Change in Policies Rates by RBI: If there is a change in Cash Reserve Ratio (CRR) and/ or Repo Rate, it affects the fixed deposit interest rate.
- Inflation: As FD interest rate has to be kept higher than inflation by the banks, hence if inflation increases then FD interest rates also go higher. When inflation decreases, banks offer lower interest rates so that people can borrow and spend more.
- Demand and Supply of Credit: With the increase in demand of the credit/ loan, interest rates of fixed deposit also go higher. When the supply is more than the demand of credit, banks offer lower interest rates on fixed deposit.
- Growth Uncertainty: If there is any uncertainty of future economic growth, the banks need to offer higher interest rates on FD as a compensation for higher default risks.
- State of Economy: If a country's economic state is very good then the banks of that country offer higher interest rate on fixed deposits in order to attract more investments to extend more credits/ loans.
- Recession: Whenever there is a situation of recession in an economy, it always results into a decrease in the fixed deposit interest rate, as in case of situation of recession, the RBI needs to increase the liquidity in the market by releasing the funds i.e. by lowering CRR and hence, banks reduce the FD interest rates.
- Global Liquidity: Higher global liquidity results into higher domestic liquidity. In such cases banks will offer lower interest rates on FD.
Union Bank FD News Dec 2024
- August 02, 2024: Union Bank of India has revised FD interest rates w.e.f. August 02, 2024
- May 23, 2023: Union Bank of India has revised FD interest rates w.e.f. 23/05/2023
- April 1, 2021: Union Bank of India (UBI) allotted new IFSC and MICR codes after merger of Andhra Bank and Corporation Bank with Union Bank of India w.e.f. April 1, 2021
- August 3, 2020: Union Bank of India (UBI) cuts home loan interest rate to 6.7%
- January 21, 2020: Union Bank of India (UBI) would emerge as the number one bank in Telangana after the merger of Andhra Bank and Corporation Bank with it
- January 16, 2020: Union Bank decides to sell its entire stake in credit information bureau Equifax Credit Information Services (ECIS)
- January 1, 2020: Union Bank to sell bad loans worth over Rs. 1,200 crore to asset reconstruction companies (ARCs) in order to clean up its balance sheet ahead of its merger with Andhra Bank and Corporation Bank