Union Bank FD Rates 2021
About Union Bank
Union Bank of India is one of the country’s largest public sector banks. The Union Bank of India is involved in the following sectors of business. Personal banking, NRI banking, corporate banking, and other services are available. To their corporate clients, the bank provides CMS, E-Tax, trade finance, insurance products, and loans. The Bank is a publicly traded company, with the Government of India owning a portion of the bank’s total share capital. The Bank was established as a limited company on November 11, 1919, with its headquarters in Mumbai, India.
As of March 31, 2020, the bank’s balance sheet was at Rs. 5.5 lakh crores. In FY20, the bank made a loss of Rs 2897 crores. Today it has more than 9,500 domestic branches and more than 13,300 ATMs. It employs more than 75,000 workers who serve more than 120 million users around the country.
Features of Union Bank FD Rates
- With a minimum deposit of Rs 1,000, you can start an FD account with Union Bank. This may differ depending on the FD plan you choose. The low minimum deposit amount encourages people of all income levels to put money down for the future.
- For its fixed deposits, Union Bank offers an auto-renewal option. This means that, unless otherwise specified, the deposit will be automatically renewed for the same time at the applicable Union Bank FD interest rate at maturity.
- Union Bank has a variety of term deposit options from which you can pick. The following are some of them:
1. Short Deposit Receipt (SDR)
2. Fixed Deposit Receipt (FDR)
3. Money Flex Term Deposit (MFTD)
4. Easy Tax Saver Deposit Scheme
5. Union Tax Saver
6. Monthly Income Scheme (MIS)
7. Cumulative Deposit Scheme
8. Union Monthly Plus
9. Capital Gain Scheme
Union Bank FD Interest Rates 2021
|
Tenure |
Normal Citizen FD Rate |
Senior Citizen FD Rate |
|
7 days – 1 month 15 days |
3% | 3% |
| 1 month 16 days – 2 months 29 days | 3.5% |
3.5% |
|
3 months – 3 months 29 days |
3.75% | 3.75% |
| 3 months 30 days – 5 months 27 days | 4.3% |
4.3% |
|
6 months – 11 months 30 days |
4.4% | 4.4% |
| 1 year – 1 year | 5% |
5% |
|
1 year 1 day – 2 years |
5.2% | 5.2% |
| 2 years 1 day – 2 years 11 months 30 days | 5.4% |
5.4% |
|
3 years – 4 years 11 months 30 days |
5.5% | 5.5% |
| 5 years – 9 years 11 months 29 days | 5.6% |
5.6% |
Benefits of Union Bank FD
- There are attractive interest rates available.
- The scheme’s duration varies between 7 and 10 years.
- Loans are available against FD.
- It is possible to close the account early.
- TDS will be charged on the interest that is earned.
- Nominations are accepted.
- It is possible to open a joint account.
Types of Union Bank FD Schemes
- Fixed Deposit Receipt: Six months is the minimum deposit term, and 120 months is the maximum deposit tenure. The minimum deposit amount is INR 1,000, and the maximum deposit amount is unlimited. For a fixed deposit receipt account, interest is paid either half-yearly or quarterly, depending on the instructions. This account includes a nomination feature as well as the ability for the depositor to take out a loan against their deposit.
- Monthly Income Scheme: The shortest deposit term is twelve months, and the longest deposit term is 120 months. The minimum deposit is INR 1,000, with subsequent deposits in multiples of INR 100. Furthermore, the maximum amount is unlimited. The interest is paid monthly at a discounted rate under the monthly income scheme. The nomination facility is provided in accordance with the rules. Depositors can also take out loans against their deposits under the system.
- Tax Saver Deposit: The depositor receives a tax exemption under Section 80C of the Income Tax Act when they make a tax saver deposit. Five years is the minimum deposit term, and 10 years is the maximum deposit tenure. The minimum deposit is NR 5,000, with further deposits in multiples of INR 5,000. In addition, the maximum limit for each financial year is INR 1,50,000. The loan against this deposit scheme is only available after a five-year lock-in term. Premature closure is also only possible in the event of the primary account holder’s death. Furthermore, such closures are not subject to any penalties.
- Short Deposit Receipt: The shortest deposit period is seven days, and the longest deposit period is 179 days. The minimum deposit amount is INR 1,000, and the maximum deposit amount is unlimited. The interest on a short deposit receipt account is calculated quarterly but paid half-yearly. The account allows for nominations and also allows the depositor to take out a loan against his or her deposit. On the maturity date, the deposit account will be auto-renewed for the same time at the applicable interest rate.
Eligibility of Union Bank FD
The eligibility criteria for starting a Union Bank FD are as follows:
- Any resident, including the illiterate, minors, and blind people.
- Joint Accounts with two or more people
- Institutions/Agencies, Trusts, and other entities explicitly authorized by the RBI to open a Fixed Deposit account in single/joint names are entitled to do so.
Documents required for opening a Union Bank FD
- Passport sized-photographs
- Proof of address
- Proof of identity
Factors Affecting Union Bank FD Rates
There are multiple factors that can have an effect on the Union Bank FD rates. Some of these factors are:
- The rate of inflation
- Prevailing liquidity scenario in India
- Demand and Supply
- Anticipation of a lending rate cut
- Falling call rates
- Plummet in the Bank’s fund costs
FAQs:
How long will it take for FD to double?
The 72 rule can be used to determine how many years it will take for a Union Bank FD to double. Divide 72 by the interest rate to get the number of years it will take for the Union Bank FD to double. For example, the Union Bank FD interest rate for older adults is 6.1 percent for a 5- to a 10-year term. By investing in a Union Bank FD for this duration (72/6.1), an investor can double his or her money.
What is Union Bank's highest FD rate?
The highest FD rate offered by Union Bank is 5.6 percent for regular people with a 5-to-10-year term. For a 5- to 10-year term, the highest Union Bank FD rate for senior adults is 6.1 percent.
Is it possible to make a nomination for fixed deposits?
Yes. In the event that you are unable to claim the maturity proceeds of your fixed deposit, you can designate a close family member, such as your parents, children, or spouse.
