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The Union Bank of India is a trusted public sector bank with over 120 million customers and branches all across the country. Among its many customer-centric retail banking products are fixed deposits that offer guaranteed and competitive returns. Union Bank FD rates are among the best in the country. Apart from high interest rates, the fixed deposit plans offered by the Union Bank of India also offer many other benefits. 

 

If you are an investor seeking low-risk and stable returns on your investment, Union Bank FDs are among the best options to choose from. If you wish to know more about the Union Bank of India FD rates, benefits, investment tenors and more, this article will give you all the details you need.

 

Union Bank FD rates start from 3.00% and go up to 7.00% for deposits less than ₹2 Crore. The Union Bank FD rates for senior citizens are higher by an additional 0.50%. Overall, the rates vary depending on the tenor of the FD, which can range from 7 days to 10 years. You can choose the option that best suits your financial requirements.

 

The latest applicable interest rates on a Union Bank fixed deposit are as follows:

Maturity Period

Interest rates (per annum) on single deposits less than ₹2 Crore

Non-Senior Citizens

Senior Citizens

7 to 14 days

3.00%

3.50%

15 to 30 days

3.00%

3.50%

31 to 45 days

3.00%

3.50%

46 to 90 days

4.05%

4.55%

91 to 120 days

4.30%

4.80%

121 to 180 days

4.40%

4.90%

181 days to less than 1 year

5.25%

5.75%

1 year

6.30%

6.80%

More than 1 year to 443 days

6.60%

7.10%

444 days

6.70%

7.20%

445 to 598 days

6.60%

7.10%

599 days

7.00%

7.50%

600 days to 2 years

6.60%

7.10%

More than 2 years to 3 years

6.70%

7.20%

More than 3 years to 5 years

6.70%

7.20%

More than 5 years to 10 years

6.70%

7.20%

Note: The above interest rates are valued w.e.f October 17, 2022 and are applicable for retail domestic fixed deposits. They are subject to change from time to time depending on the bank’s policies.

Union Bank Fixed Deposit Calculator

Before investing in a fixed deposit, you may want to get a better idea of the interest you will earn and the maturity amount. With the help of a Union Bank FD calculator, you can check the returns you will earn and how much your investment will grow. 

Deposit Amount
Tenure
Months
Interest Rate
%
Interest Payout
Your Total Maturity Amount is
Your Total Maturity Amount is
Total Investment
Total Interest Earned

Features and Benefits of Union Bank Fixed Deposit

The competitive Union Bank FD rates are only one of the benefits and features offered by this investment option. In addition to this, there are other key features of the Union Bank fixed deposit that you should be aware of. Knowing these additional advantages and features can help you make an informed investment decision.

 

Here is a closer look at the major features and benefits of a Union Bank of India FD.

 

  • Flexible Investment Tenor

You can choose an investment tenor that is convenient for you. The tenor options range from 7 days to 10 years. 

 

  • Loans Against your FD

With the Union Bank of India’s fixed deposit plan, you also get the advantage of getting a loan against your FD account balance in case of emergencies. 

 

  • Low Minimum Deposit Amount

The minimum deposit amount permitted is ₹1,000, while there is no limit on the maximum amount you can deposit. This means you do not need a huge sum to start investing. 

 

  • Automatic and Convenient Renewal

Union Bank of India also offers the facility of automatic renewal at maturity, so your investment will be renewed for the same period as the original tenor chosen by you.

 

  • Choice of Interest Payout Frequency

You can choose to have your interest reinvested and paid out only at maturity. Alternatively, you can also opt for regular interest payouts on a quarterly or half-yearly basis.

 

  • Attractive Interest Rates

The Union Bank of India fixed deposit interest rates are highly competitive. You can get safe and decent returns on your FD investments. Furthermore, the Union Bank of India interest rates for senior citizens are higher by 0.50%.

Union Bank FD Interest Rates for Senior Citizens and Others for up to 5 Years

Whether you are aged below 60 years or are a senior citizen, it helps if you know what the Union Bank fixed deposit rates are and how they will help your deposit grow. The table below gives you more clarity on the Union Bank FD rates applicable on investments of ₹1 Lakh for senior citizens and non-senior citizens. You can also see how much interest you will earn at these Union Bank FD interest rates and what the maturity amount will be. 

Tenor

Non-Senior Citizen

Senior Citizen

Interest Rate

Interest Earned

Maturity Amount

Interest Rate

Interest Earned

Maturity Amount

1 year

6.30%

₹6,450

₹1,06,450

6.80%

₹6,975

₹1,06,975

2 years

6.60%

₹13,988

₹1,13,988

7.10%

₹15,114

₹1,15,114

3 years

6.70%

₹22,059

₹1,22,059

7.20%

₹23,872

₹1,23,872

4 years

6.70%

₹30,445

₹1,30,445

7.20%

₹33,035

₹1,33,035

5 years

6.70%

₹39,407

₹1,39,407

7.20%

₹42,875

₹1,42,875

Eligibility Criteria and Documents Required for Opening FD in Union Bank

Every bank has a certain set of eligibility criteria to determine who can invest in the fixed deposit plans it offers. The Union Bank of India also has some eligibility requirements. If you qualify for this investment option, you can apply and book an FD with the bank, provided you submit the required documents needed to invest in a fixed deposit. Check out all these details in the section below.

1. Eligibility Criteria

The following categories of persons can invest in a fixed deposit with the Union Bank of India. 

 

  • Any resident individual (for single accounts)

  • Two or more individuals (for joint accounts)

  • Illiterate persons, blind persons, and pardanashin ladies

  • Minors

  • Associations

  • Clubs

  • Societies

  • Trusts

  • Institutions/Agencies specifically permitted by the RBI

2. Documents Required

You will need certain documents to be able to invest in the Union Bank FD. Given below is a list of the necessary documents.

 

  • Passport size photographs

  • Proof of your identity, such as Aadhar card, PAN card, driving licence etc.

  • Proof of your address, such as ration card, electricity bill, water bill, etc.

  • Proof of your age such as birth certificate, matriculation passing certificate, etc.

  • Bank account details, if needed

How to Open FD in Union Bank

You can book a Union Bank FD online as well as offline, depending on whatever is most convenient for you. Check out the details of how you can do this.

1. Booking a Union Bank FD Online

To open a fixed deposit with the bank online, you need to follow the steps outlined below. 

 

  • Step 1: Visit the internet banking portal offered by the Union Bank of India website. 

  • Step 2: Log into your account by entering your user ID and password.

  • Step 3: Click on the ‘Fixed Deposit’ option. 

  • Step 4: Enter the details of your deposit such as the amount, the account from which the sum will be deposited, the investment tenor and other such details required. 

  • Step 5: You will receive a confirmation message once your deposit has been made.

2. Booking a Union Bank FD Offline

The steps to book a Union Bank FD offline are listed below. You can do this to invest in a fixed deposit with the Union Bank of India in person.

 

  • Step 1: Visit the branch of Union Bank of India that is nearest to you.

  • Step 2: Ask for an FD application form. 

  • Step 3: Fill in the form and ask for assistance with this if you need it. 

  • Step 4: Once you have filled in the application form, submit it along with the required documents.

  • Step 5: You will receive a receipt when the account opening process is successfully completed.

How to Use the Union Bank Fixed Deposit Calculator? 

Using a Union Bank FD calculator is extremely easy. Even beginners find it simple and hassle-free. As an added advantage, you can also use the Union Bank FD calculator online as many times as you want to, so you can compare how different investment amounts, investment tenors and interest rates affect the returns. With the help of the Union Bank of India FD calculator, you can check the interest you will earn as well as the maturity amount of your FD. 

 

Here is what you need to do to use the FD calculator by UBI.

  • Step 1: Input the Principal Amount

In the Union Bank FD calculator, enter the amount that you wish to invest. This is the principal that you will deposit in your FD account. It is on this sum that the Union Bank FD rates will be applied initially. 

  • Step 2: Select the Investment Tenor

The next detail that you need to provide in the Union Bank FD calculator is the period for which you wish to invest. This is the investment tenor, and it can range from 7 days to 10 years. 

  • Step 3: Choose the Type of Deposit

After you have chosen the investment tenor and input the details into the Union Bank FD calculator, you need to choose the type of deposit. This can be reinvestment or non-cumulative deposits that pay interest on a quarterly or monthly basis.

  • Step 4: Submit the Details

After you have entered all the required details in the Union Bank FD calculator, simply click on the ‘Calculate’ button to have the maturity amount and the interest amount displayed.

How is the Union Bank FD Maturity Amount Calculated?

The maturity amount of a fixed deposit is the sum total of the original amount invested as well as any accumulated interest earned on this investment. Since the interest earned is compounded, you can use the formula shown below to compute the maturity amount of your Union Bank fixed deposit. 

Maturity amount = P (1 + r/n)nt 

Here, P is the amount you invest initially in the FD, r is the Union Bank FD rate, n is the number of times the interest will be compounded in a year and t is the investment tenor in years.

 

Let’s look at a quick example to understand how this formula works. 

 

Say you invest ₹5 Lakh in a fixed deposit plan offered by the Union Bank of India for a period of 5 years. The Union Bank FD rate applicable in this case will be 6.70% per annum if you are not a senior citizen. Also, the interest in a Union Bank FD is compounded and credited on a quarterly basis. So, using this formula, here is how you can calculate the maturity amount of the FD.

 

Maturity amount:

 

= P (1 + r/n)nt

= ₹5,00,000 x (1 + 0.0670/4)4X5

= ₹5,00,000 x (1 + 0.01675)20

= ₹5,00,000 x (1.01675)20

= ₹5,00,000 x 1.39406691886

= ₹6,97,033

 

Investing in a fixed deposit with the Union Bank of India is a suitable course of action for you whether you are a conservative investor who wants stable returns or an aggressive investor looking to bring down the overall risk in your investment portfolio. If you decide to invest in this product, make sure you check the latest Union Bank FD rates, so you know exactly how much you can earn from your investment. A Union Bank FD calculator can help you with this. 

 

FAQs

  • ✔️Is there a penalty for premature withdrawal of Union Bank FD?

    Yes, there will be a penalty on premature withdrawal of a Union Bank FD. The penalty levied is at the rate of 1% less than the rate applicable on the deposit.

  • ✔️How to extend the tenor of a Union Bank FD?

    You can submit an application for the extension of your Union Bank FD at your nearest Union Bank branch. Alternatively, if you choose the automatic renewal option, the deposit will automatically be renewed at maturity for the same period as the original investment tenor. 

  • ✔️Is it possible to take a loan on a Union Bank FD?

    Yes, you can get a loan against your Union Bank FD.

  • ✔️What types of forms should I use for booking a Union Bank FD account?

    You can use an online application form if you wish to open an FD account via internet banking. On the other hand, an offline form may be more suitable if you wish to book your FD in person at the bank branch.

  • ✔️Are there any Union Bank FD plans that offer tax exemption?

    Yes, there is a Union Bank tax-saving deposit plan with a lock-in period of 5 years. The amount invested in this deposit is eligible for tax deductions up to ₹1.5 Lakh under section 80C of the Income Tax Act, 1961.

  • ✔️How can I apply for the tax saving deposit plan at Union Bank of India?

    You can apply for a tax saving FD plan on the Union Bank of India’s internet banking portal or at a physical branch.

  • ✔️Is TDS deducted on Union Bank FD?

    Yes, tax will be deducted on the interest earned from your Union Bank FD, provided the total interest earned during the year exceeds ₹40,000 (or ₹50,000 in case you are a senior citizen).

  • ✔️Is there a loan facility under the Union Bank FD account?

    Yes. The Union Bank FD account comes with a loan facility. 

  • ✔️What is the highest interest rate available on Union Bank FD?

    The highest Union Bank FD rate for non-senior citizens is 7.00% per annum, applicable on deposits less than ₹2 Crore for a tenor of 599 days.

  • ✔️What is the duration of the Union Bank of India fixed deposit account?

    The duration of fixed deposits in the Union Bank of India can range from 7 days to 120 months or 10 years. 

  • ✔️What is the senior citizen FD interest rate at Union Bank of India?

    The Union Bank fixed deposit rates for senior citizens range from 3.50% per annum to 7.50% per annum, depending on the investment tenor chosen.