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Union Bank FD - Scheme, Eligibility, Documents

Union Bank of India Fixed Deposit Highlights

Last Updated 16th Jul 2021

Union Bank of India fixed deposit is a reliable, secure and beneficial investment option that offers various benefits such as guaranteed returns, Government insurance, loan borrowing facility and flexible fixed deposit tenure.

Interest Rate 3.00% to 5.60%
Minimum Tenure 7 Days
Maximum Tenure 10 years
Deposit Amount Rs 1000
Maximum Deposit No Limit
    Earn upto 6.95% on FD APPLY NOW

    Union Bank of India FD

    Union Bank of India is one of the leading fixed deposit providers in the country. The Bank offers FD with flexible tenures ranging between 7 Days to 10 years. Apart from that, Union Bank of India FD offers regular returns on fixed deposits ranging between 3.00% to 5.60%. For senior citizens, the interest rates on fixed deposits range between 3.50% to 6.10%. In addition to that, Union Bank of India fixed deposit plans offer tailor-made fixed deposit products for different kinds of fixed deposit investors.

    Types of Union Bank of India Fixed Deposit Schemes

    Different type of Union Bank of India term deposit products offered to the investors are listed as follows:

    Union Flexi Savings Deposit Scheme

    Description:

    Standard Fixed Deposit

    Description:

    Benefits of Union Bank of India FD

    Union Bank of India fixed deposit is a popular investment option due to a number of benefits it provides to the FD investors. Some of these are mentioned below:

    • Guaranteed returns: The best thing about Union Bank of India FD is that it offers guaranteed and assured returns to the investors. The return offered on a fixed deposits is regulated by the Bank on a monthly, or quarterly basis, as per the Bank’s choice. Currently, Union Bank of India offers FD rates up to 5.60%. The interest rates offered on Union Bank of India FD is not only assured but also way higher than a savings account.
    • Insured by the Government: The Deposit Insurance and Credit Guarantee Corporation offers deposit insurance of ₹ 5 Lakh to fixed deposits across all banks. Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option.Thus, Union Bank of India term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.
    • Loan against FD: The investment made in an FD scheme is not only a reliable investment option but can also act as an asset. This is because Union Bank of India fixed deposit allows one to borrow a secured loan against Union Bank of India FD. Benefits of Loan Against FD of Union Bank of India are as follow:
      • Loan against FD of Union Bank of India offers the loan amount upto 90%-95% of the FD amount.
      • The interest charged on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
      • Loan against FD of the Union Bank of Indias flexible repayment options.
      • The processing fee of Loan Against FD in the Union Bank of India is nil.
      • It is a hassle-free loan and does not require the depositor to break the FD.
    • Flexible tenures: Union Bank of India FD offers the investors the flexibility to choose the investment tenure as per their convenience. Union Bank of India offers fixed deposit for a minimum tenure of 7 Days up to a maximum tenure of 10 years. Union Bank of India offers different interest rates across FD tenures.
    • Flexible investment: Apart from the flexibility of tenure, Union Bank of India fixed deposit offers the flexibility of funds to FD investors as funds can be invested with a minimum amount of Rs 1000. Apart from that, one can invest in the Union Bank of India FD up to a maximum of No Limit.

    Premature Withdrawal Terms and Conditions

    Though a fixed deposit with Union Bank of India means depositing funds for a fixed period of time in expectation of a regular return. However, keeping in view the instability in the markets, the Bank allows premature withdrawals of funds from a fixed deposit. This means that investors can withdraw their funds before the date of maturity to fulfil their urgent financial conditions.

    Withdrawing funds prematurely from Union Bank of India will attract an interest rate lowered by Allowed below the effective rate on the date of booking the FD. The penalty charged on fixed deposits is valid only on fixed deposits with a tenure greater than seven days. In case of premature withdrawal of Union Bank of India fixed deposits with tenure less than seven days, the bank does not pay any interest.

    Eligibility Criteria for Union Bank of India FD

    Union Bank of India FD facility can be availed by the following type of investors:

    • Indian Citizens
    • Members of HUFs or the Hindu Undivided Family
    • Business firms
    • Local governing bodies
    • Government departments
    • Employees of private limited companies
    • Trust accounts

    Documents for Union Bank of India FD

    Union Bank of India fixed deposit requires one to submit the following documents:

    • Passport size photographs
    • Identity proofs such as Aadhar card, passport, PAN card, and driving license.
    • Address proofs such as passport, ration card, utility bills such as water, gas or electricity bill.
    • Age proof such as birth certificate, matriculation passing certificate, and Voter ID card.
    • Bank account details such as passbook and account number.

    Credit Card Against Union Bank of India FD

    Credit Cards againstUnion Bank of India FD are secured credit cards. They are availed against the amount deposited in the term deposits. They are an ideal option for individuals with low CIBIL score and salary. Below mentioned are the important features of Credit Cards against Union Bank of India FD:

    • The limit offered on the credit card depends upon the amount deposited in the fixed deposits. Generally, banks offer around 80% of the deposit amount as the total credit limit on the card.
    • Credit Cards against the fixed deposits require minimum documentation.
    • The minimum tenure of the term deposits should be 6 months to avail credit card against it.
    • Secured Credit cards also offer discounts, cashback and rewards.
    • The cardholder continues to earn the same applicable interest rate on FD.

    FAQs

    What is the loan against FD repayment tenure in Union Bank of India?

    Loan against FD is the  facility which allows the investor to avail the loan against the amount deposited in the term deposit. Union Bank of India offers the loan against FD facility to the FD investors with a repayment tenure of up to 10 years.

    What is the minimum investment for FDs under Union Bank of India?

    Union Bank of India Fixed Deposit is one of the safest investment avenues and it can be availed with a minimum deposit of Rs 1000.

    What is the minimum amount for a fixed deposit in Union Bank of India?

    The minimum amount required for a fixed deposit investment in Union Bank of India fixed deposit is Rs 1000.

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

    Currently, Union Bank of India offers an interest rate ranging between 3.00% to 5.60% on its fixed deposits.

    What is the penalty for early withdrawal in Union Bank of India?

    Bank charges penalty on premature withdrawal of fixed deposits. The penalty for early withdrawal ranges between 0.5% to 1% in most cases, based on the loan amount and tenure.

    What is the minimum FD tenure for which a fixed Deposit account can be opened in Union Bank of India?

    Union Bank of India fixed deposit can be opened with a minimum tenure of 7 Days. The tenure of the Union Bank of India fixed deposits ranges from 7 Days to 10 years.

    Can I deposit additional amount in my Union Bank of India 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.

    What documents are required to open an FD account in Union Bank of India?

    The documents required to open an FD account in Union Bank of India includes KYC documents and Passport size photos.

    In how many years FD doubled in the Union Bank of India?

    The time Union Bank of India fixed deposits will take to double the initial amount will depend upon the rate of interest offered on the FD. You can calculate the maturity amount of the Union Bank of India FD at MyLoanCare by entering the amount you want to deposit and the interest offered on FD.

    Can an NRI open a Union Bank of India fixed deposit account?

    No, Non-Resident Individuals are not allowed to invest in Union Bank of India schemes. It means that they are not eligible to invest in fixed deposits.

    Is the Union Bank of India safe for FD?

    Yes, the Union Bank of India is one of the safest avenues for any investments. Union Bank of India is backed by the Government of India and the returns on any investment including fixed deposits are guaranteed.

    Is it wise to take a loan against FD from the Union Bank of India?

    Yes, opting for a Loan Against FD is an excellent decision. The reasons to take loan from Union Bank of India are:

    • It offers the loan upto 90%-95% of the FD amount.
    • The interest levied on the loan against FDs are generally low and are 2% to 3% higher than the FD interest rate.
    • Loan against FD offers flexible repayment options.
    • The processing fee of Loan Against FD is Nil.
    • It is a hassle-free loan and requires minimum documentation.
    • Loan against FD helps the depositors to avoid the option of premature withdrawal.

    However, there might be a chance that the alternative credit option is offering lower rates with better facilities. In that case, individuals must compare and decide on the credit option.


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    Union Bank News - Jul 2021
    • 2021-07-16 : UBI update on change in IFSC code for merged banks - Andhra Bank and Corporation Bank
      Union Bank of India (UBI) on Friday said the IFSC codes of the erstwhile e-Andhra Bank and e-Corporation Bank branches will change with effect from July 1, 2021. Customers of the erstwhile banks will have to get new cheque books with changed IFSC and MICR codes
    • 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%.
    *Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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