Investor Education
Union Bank Fixed Deposit Interest Rates
Think of ‘safe ways to earn decent returns through your savings’ and fixed deposits swiftly come to mind! There is no denying that fixed deposits with banks are one of the most popular ways to use your savings to earn interest. And while there are many NBFCs (non-bank financial companies) offering fixed tenure deposit services to customers, most opt for fixed deposits with banks for their credibility and reliability. Union Bank of India, simply referred to as Union Bank or UBI, offers numerous deposit services, including fixed deposits. If you want to know about the latest Union Bank fixed deposit interest rates, then this page is for you. Here you will know about the latest interest rates as well as other critical information about Union Bank fixed deposits.
Union Bank Fixed Deposit Interest Rates 2022
Union Bank recently revised its FD interest rates in light of the evolving economic landscape in India. Take a look at the latest Union Bank fixed deposit interest rates below.
Please note that these interest rates are applicable on deposits below Rs. two crores and applicable on all deposits created or renewed after 14th September 2022.
| Period | Per Annum Interest Rate (w.e.f. 14th September 2022) |
| 7 - 14 Days | 3.00 |
| 15 - 30 Days | 3.00 |
| 31 - 45 Days | 3.00 |
| 46 - 90 Days | 4.05 |
| 91 - 120 Days | 4.10 |
| 121 - 180 Days | 4.10 |
| 181 Days to < 1 Year | 4.60 |
| 1 Year | 5.35 |
| > 1 Year to 2 Year | 5.45 |
| > 2 Year to 749 Days | 5.50 |
| 750 Days | 6.15 |
| >750 Days to 3 Year | 5.50 |
| > 3 Year to 5 Years | 5.75 |
| 5 Years 1 Day | 6.20 |
| >5 Years 1 Day to 10 Years | 5.80 |
Please note that these Union Bank fixed deposit interest rates are subject to change at any time. The applicable rate of interest also varies depending on the aggregate amount deposited by the depositor for a similar period of time. You can contact the nearest Union Bank branch to know about the applicable FD interest rates of deposits of over Rs. two crores.
Also Read : What is Fixed Deposit
Union Bank Senior Citizen Fixed Deposit Interest Rates 2022
Similar to most other banks in India, Union Bank of India offers additional rate of interest on fixed deposits to senior citizens. This additional interest rate is over and above the rate applicable on deposits by regular citizens. The current additional Union Bank FD interest rate for senior citizens is 0.50 percent. This is applicable on all deposits of up to Rs. two crores. For senior citizen FD interest rates on deposits above Rs. two crores, please contact your nearest Union Bank of India branch. Any individual who has completed the age of 60 years is regarded as a senior citizen and is eligible for the Union Bank senior citizen fixed deposit interest rates. NRI senior citizens are not eligible for the additional FD interest rates under the scheme.
Here are the latest Union Bank of India fixed deposit interest rates for senior citizens.
| Period | Per Annum Interest Rate (w.e.f. 14th September 2022) |
| 7 - 14 Days | 3.50 |
| 15 - 30 Days | 3.50 |
| 31 - 45 Days | 3.50 |
| 46 - 90 Days | 4.55 |
| 91 - 120 Days | 4.60 |
| 121 - 180 Days | 4.60 |
| 181 Days to < 1 Year | 5.10 |
| 1 Year | 5.85 |
| > 1 Year to 2 Year | 5.95 |
| > 2 Year to 749 Days | 6.00 |
| 750 Days | 6.65 |
| >750 Days to 3 Year | 6.00 |
| > 3 Year to 5 Years | 6.25 |
| 5 Years 1 Day | 6.70 |
| >5 Years 1 Day to 10 Years | 6.30 |
Joint account rules for FDs by senior citizens: Union Bank of India, under the special fixed deposit scheme, allows senior citizens to create joint deposits with other individuals below the age of 60 years. In such scenarios, the first name in the application must be the name of the senior citizen to enjoy the benefits of the scheme.
Also Read : Shriram Finance FD Interest Rates
Benefits and Features of Union Bank Fixed Deposits
- You can create a Union Bank of India fixed deposit for a minimum period of seven days to a maximum tenure of 10 years.
- As per the current interest rates that came into effect on 14th September 2022, the lowest fixed deposit interest rates for regular citizens is 3.00 percent, whereas the highest interest rate is 6.20 percent.
- Senior citizens enjoy an additional interest rate of 0.50 percent, over and above the interest rate applicable on deposits by regular citizens.
- Depositors can also avail loan against their Union Bank fixed deposits in case of urgent need for funds.
Union Bank of India allows any individual belonging to any of the following groups to open a fixed deposit:
- Residential Indians
- Members of HUF or Hindu Undivided Family
- Societies, clubs and associations
- Minors with co-signing adults
- Agencies and institutions
- Public and private limited companies
- NRIs
Also Read : Mahindra Finance FD Interest Rates
Premature Closure of Union Bank Fixed Deposits
Apart from Union Bank tax saver fixed deposits, any other deposit can be withdrawn prematurely by the depositor. However, a penalty of 1 percent is levied on deposits of up to Rs. two crores in case the FD is withdrawn after seven days of creating the FD. Moreover, no penalty is levied on the depositor in case the Union Bank fixed deposit is withdrawn prematurely within seven days of its creation.
Union Bank Tax Saver FDs
Depositors can claim tax exemption under Section 80C of the Income Tax Act. The minimum deposit period for Union Bank tax saver fixed deposit is five years, during which the amount remains locked in with the bank. The maximum deposit period for Union Bank FDs for tax benefit is 10 years.
Under this scheme, the minimum deposit amount is Rs. 5000, and in multiples of 1000, thereafter. A depositor can claim a maximum tax exemption of Rs. 150000 in a financial year. It is important to note that premature closure of tax saver Union Bank of India fixed deposits is only available in case of the death of the primary account holder. In no other scenario is the premature closure of these fixed deposits allowed.
Loan Against Union Bank of India Fixed Deposits
Union Bank of India allows its depositors to avail loans against their existing fixed deposits with the bank. One can take loans of up to 90 percent of the fixed deposit amount.
Frequently Asked Questions about Union Bank of India Fixed Deposits and Interest RatesQ. What are the minimum and maximum amounts for a Union Bank FD ?
A. The minimum amount for opening a Union Bank fixed deposit is Rs. 1000. There is no limit on the maximum amount for FD.
Q. What are the Union Bank FD interest rates ?
A. Union Bank of India fixed deposit interest rates for regular citizens vary from 3.00 percent to 6.20 percent, depending on the tenure of the deposit. The interest rates for senior citizens are 0.50 percent higher, and hence range from 3.50 percent to 6.70 percent. Please note that these interest rates are for deposits of up to Rs. two crores. Interest rates for a higher deposit amount are different.
Q. What is the tenure of Union Bank FDs ?
A. Union Bank fixed deposits have a minimum and maximum tenure of 7 days and 10 years, respectively.
Q. How to open a Union Bank fixed deposit ?
A. Various modes are available for opening a Union Bank of India fixed deposit? For instance, you can open one through the official Union Bank mobile app, internet banking as well as offline.
Q. What are the documents required to open a Union Bank fixed deposit ?
A. Anyone interested in opening a Union Bank fixed deposit account must have a valid identity and address proof. Any of the following documents are sufficient to open a Union Bank FD:
Proof of Identity:
- Aadhaar Card
- PAN Card
- Passport
- Driver’s License
- Voter ID
- Ration Card with Photo
- Senior Citizen identification, when applicable
Address Proof:
- Telephone Bill
- Electricity Bill
- Aadhaar Card
- Post Office Issued Certificate
- Bank Statement, including cheque
Also Read :
Bank of Baroda FD Interest Rate for Senior Citizen