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Union Bank FD Interest Rates

Union Bank FD Rates 2020

Last Updated 17th Sep 2020

Union Bank of India is one of most reliable FD providers amongst a number of FD providers in the market. Union Bank of India FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on Union Bank of India FD is 5.45%. Latest Union Bank of India FD interest rate for senior citizens, on the other hand ranges between 4.00% to 5.95%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 14 days 3.50% 4.00%
15 days to 30 days 3.50% 4.00%
31 days to 45 days 3.75% 4.25%
46 days to 90 days 4.00% 4.50%
91 days to 120 days 4.50% 5.00%

Union Bank Fixed Deposit (FD)

Union Bank of India FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of Union Bank of India Fixed Deposit are:

  • Deposit Amount: Union Bank of India FD can be opened with an amount as a low to up to .
  • FD Tenure: Ranges between 7 days to 10 years.
  • Interest Rate Range: 3.50% p.a. to 5.45% p.a.
  • Senior Citizens FD Rate: 4.00% to 5.95% p.a.
  • Highest Interest Rate: As per today’s rate, Union Bank of India’s highest interest rate on FD is 5.45% offered for a tenure of 10 years.
  • Safety of Union Bank of India Deposits: Union Bank of India deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: Union Bank of India provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes: Union Flexi Savings Deposit Scheme

Union Bank of India Best FD Plan

We need to compare tenure wise latest FD rate of Union Bank of India to choose the tenure at which it provides the highest interest rate. Union Bank of India FD rates are best for the deposits with a tenure of 3 years 1 day to 10 years, wherein the current FD rate of interest is 5.45% p.a

If one is looking to invest in short term deposits with Union Bank of India, FD interest rates range from 3.50% p.a. to 5.00% p.a for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Union Bank of India FD rates for senior citizens range from 4.00% to 5.50% p.a.

If one is looking to invest in long term deposits, Union Bank of India FD interest rates with tenure of 5 years to 10 years are a good choice with interest rates on deposits with a tenure of 10 years at 5.45%. Senior citizens are offered special rates from bank with highest deposit rates of 5.95% p.a. on long term FDs.

Fixed Deposits of Union Bank of India have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Union Bank of India are:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

FD in Union Bank of India – Premature Withdrawal

Premature closure of Term Deposit with Union Bank of India is along with the lower interest rate of pays applicable ROI for actual duration of deposit than the contracted rate. The penal provisions for premature closure on Union Bank of India FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit Union Bank of India

Union Bank of India offers loan up to 90% against its own deposit. Note that Union Bank of India will not give you loan against FD of any other bank. Union Bank of India offers Loan against FD at the rate of 4.5% to 6.45%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 for 2 years in Union Bank of India. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws ₹ 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on ₹ 90,000 availed for 1 month only. The amount he repays after 1 month is ₹ 90,744. So, the interest charged on the loan taken is ₹ 744.

FD Account Opening Process at Union Bank of India

To open a Fixed Deposit account in Union Bank of India, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the Union Bank of India FD after reading the terms and conditions.

Nomination Facility on Union Bank of India FD

Union Bank of India offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a Union Bank of India fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

Union Bank of India Fixed Deposit Scheme

Union Flexi Savings Deposit Scheme

Description:

FAQs

What is the highest FD rate for Union Bank of India?

You can earn a maximum interest of 5.45% on Union Bank of India fixed deposit.

Are there any special rates for senior citizens FD of Union Bank of India?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 3.50% to 5.45%. Compared to this, the rate of senior citizens FD are in the range of 4.00% to 5.95%.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in Union Bank of India?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

Is it possible to change the tenure of my existing fixed deposit account with Union Bank of India?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with Union Bank of India without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

What is the current interest rate on FD in Union Bank of India?

Current interest for FD in Union Bank of India ranges between 3.50% - 5.45%.

Can a customer open a FD account online in Union Bank of India?

Yes, you can submit your application for opening a FD account on the website of Union Bank of India. After submitting the application, you will be contacted by the bank’s representative for further process which includes filling an application process and submitting KYC documents.

In how many years FD will double in Union Bank of India?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.45%. For Union Bank of India FD the number of years in which your FD will get doubled is; 72/5.45 = 13


Union Bank News - Sep 2020
  • 2020-06-17 : New FD rates for Union Bank
    With effect from 16 June 2020, Union Bank of India revised its FD rates. FD rate for 7 to 30 days is 3.50%, for 31 to 45 days it is 3.75%, for 46 to 90 days it is 4% and it is 4.50% for 91 to 120 days. Fixed deposit rate for 120 days to 120 to 180 days is 4.75%, for 181 days to less than one year is 5%, for one year to 443 days it is 5.40 and for 3 to 10 years it is 5.45%.
  • 2020-02-18 : Revised FD rates for Union Bank of India
    With effect from February 18, 2020, Union Bank of India revised its FD rates. FD rate for 7 to 45 days is 4.50%, for 46 to 90 days it is 5% and it is 5.50% for 91 to 120 days. Fixed deposit rate for 181 days to less than one year is 5.90%, for one year to 554 days it is 6.10% and 556 days to 10 years it is 6.20%.In addition to this, the FD rate for the special tenor of 444 days is 6.15% and it is 6.25% for 555 days.
  • 2019-12-06 : New Fixed Deposit rates for Union Bank of India
    Union Bank of India revised interest rates on fixed deposits for December month. New rates for 7-45 days are 5.00%, the rate for 46-90 days is 5.50%, for 91-120 days it is 6.00%, and the rate for 121 to 180 days is 6.10%. In addition to that, from 181 days to less than one year, the new FD rate is 6.15%, and from 1 year and above up to 10 years, the FD rate is revised to 6.30%. The new rates are in effect from December 1, 2019.
  • 2019-10-07 : Revised fixed deposit rates for Union Bank of India
    Union Bank of India revised interest rates on fixed deposits with effect from October 1, 2019. The revised interest rates for 7 days to 45 days is 5.00%, for 46-90 days the rate is 5.50%, the rate for 91 to 120 days is 6.00%, and for 121 days to 1 year the rate is 6.25%, For longer tenure of 1 year the rate is 6.60%, for 1 to 3 years it is 6.40% and for 3-10 years the rate is 6.45%.
  • 2018-07-27 : Union Bank of India hikes interest rate on FD by up to 25bps
    Union Bank of India has increased its interest rate on retail fixed deposits or FDs below Rs. 1 crore, by up to 25 basis points in select maturities. The Interest rate on Union Bank of India FD with a maturity of More than fourteen months to three years is increased to 6.70%, which was 6.50% earlier. More than three years to ten years will fetch an interest rate of 6.75%, which was 6.50% earlier. The new rates are effective from july 25, 2018.
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