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Union Bank Fixed Deposit (FD) Interest Rates

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Features of Union Bank FD

ET Money commission
Interest rates (p.a)5.25% - 5.90%
aum fund
Minimum deposit ₹1,000
aum fund
Maximum deposit ₹1 Cr
lock in
Lock-in lock12 months
age
Tenure 1 yr - 10 yrs
senior citizen
Senior citizen help icon Extra up to 0.5% p.a.

Why Union Bank FD is the right choice

high returns
Higher Returns

Get more returns than bank FD; assured returns up to 5.9% p.a.

high credit rating
Strong Financials

CRISIL AAA (Stable) and ICRA AAA (Stable)

flexible payout options
Flexible Payout Options

Get interest amount at regular intervals or lumpsum at maturity

FD Calculator

Who can invest in Union Bank FD?

Individual investor

Individuals investing as single FD holders

Above 18

Investors who are above 18 years of age. Senior citizens earn additional up to 0.5% p.a. interest

Indian resident

Investors who are resident Indian citizens

About Union Bank

Headquartered in Mumbai, Union Bank of India is one of the leading public sector banks of our country. It was registered on 11th November 1919, and today has over 9,500 domestic branches and 13,300+ ATMs. It has a wide employee base of more than 75,000 people serving over 120 million customers nationwide. The bank offers multiple banking and financial services to its customers including fixed deposits, loans, locker services, debt restructuring, and more. The Government of India holds 89.07% of Union Bank's total share capital. Union Bank amalgamated with Corporation Bank and Andhra Bank on 1st April 2020, making the entity the fourth largest in terms of the branch network.

Benefits of Union Bank Fixed Deposit

  • 1. Multiple Schemes - There are multiple term deposit products offered by Union Bank that you can choose from. These include the following:
    • Short Deposit Receipt (SDR)
    • Fixed Deposit Receipt (FDR)
    • Money Flex Term Deposit (MFTD)
    • Easy Tax Saver Deposit Scheme
    • Union Tax Saver
    • Monthly Income Scheme (MIS)
    • Cumulative Deposit Scheme
    • Deposit Re-investment Certificate (DRIC)
    • Union Monthly Plus
    • Capital Gain Scheme
    • Non-callable Term Deposit Scheme
    • Motor Accident Claims Annuity Deposit (MACAD)
    • Gold Monetisation Scheme
  • 2. Low Minimum Deposit - You can open an FD account with Union Bank with a minimum amount of ₹1,000. This may vary based on the FD scheme you choose. The low minimum deposit amount serves as an encouragement for individuals belonging to different income categories to save for the future.
  • 3. Automatic Renewal - Union Bank offers an auto-renewal facility for its fixed deposits. This means in the absence of specific instruction, the deposit will automatically be renewed for the same period at the applicable Union Bank FD interest rate on maturity.

Frequently Asked Questions

Who can open a fixed deposit account with Union Bank of India?

The following individuals or groups can open a fixed deposit account with Union Bank:

  • Residential Indians
  • Non-Residential Indians (NRIs)
  • Minors with co-signing adults
  • Hindu Undivided Family (HUF)
  • Agencies and institutions
  • Societies, clubs, and associations
  • Private and public limited companies

The following is the list of documents you require to open an FD account with Union Bank:

  • Identity Proof:
  • Voter ID
  • Passport
  • Driving License
  • PAN Card
  • Aadhaar Card
  • Ration Card with photo
  • Senior Citizen identification, where applicable
  • Any Government ID
  • Address Proof:
  • Passport
  • Telephone Bill
  • Electricity Bill
  • Bank Statement including cheque
  • Post Office issued certificates
  • Aadhaar Card

Depending on the FD’s tenure, the UBI FD Interest rates start from 3.00% p.a. and go up to 5.40% p.a. Senior citizens can enjoy an additional 0.50% over and above the normal UBI FD rate.

The FD tenure ranges from 7 days to 10 years.

Yes, you can take a loan up to 90% of the principal amount and accrued interest. The tenure of the loan is restricted to the tenure of the fixed deposit.

There is no maximum deposit limit for opening FDs with Union Bank.

Based on the instructions of the customers, interest can be paid on a quarterly or half-yearly basis. In case the date of interest falls on a bank holiday it will be paid on the next working day.

Yes. Union Bank offers tax saver FD schemes with a minimum lock-in period of 5 years and a maximum tenure of 10 years.

The minimum deposit amount for a tax saver FD is ₹5,000 and you can deposit in multiples of 1,000 thereof. Please note: The maximum amount that can be claimed under Section 80C of the Income Tax Act is ₹1,50,000 in a financial year.

Yes. You can nominate a close family member including your parents, children, or spouse to claim the maturity proceeds of your fixed deposit in case of your absence.

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ET Money does not offer investment options with Union Bank fixed deposit,