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Union Bank FD Rates: Features, Schemes and Document Required

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Gaurav Seth
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Union Bank FD Rates

Union Bank of India, one of the leading public sector banks of the country, is a listed entity, and the Government of India is currently holding 83.50% of the bank’s total share capital. Today, the Union bank has a vast network of 9300+ domestic branches, 11800+ ATMs, and 8216 BC Points which serves over 120 million customers and 77000+ employees.

The Bank’s total assets as of 31st March 2021 was at Rs.15,77,489 crores, comprising Rs. 6,53,684 crore of advances and Rs. 9,23,805 crore of deposits. The Union Bank of India’s Board members include eminent individuals with a wealth of experience in the economy, rural and agriculture sector, commerce & accountancy, strategy, banking, financial services, business development, risk management, analytics, central banking, etc.

What is a Fixed Deposit (FD)?

Any fixed deposit (FD) is an investment instrument/tool offered by multiple banks and non-banking financial companies (NBFC) to their customers. People may invest a specific amount for a fixed term at a predetermined interest rate through an FD. The interest rate may vary from one financial organization to another, although it is generally higher than the interest offered on the savings accounts of the same organization.

What are the features of Union Bank Fixed Deposit Receipt (FDR)?

Union Bank Fixed Deposit Receipt (FDR) offers you multiple features, including:

Scheme CodeTD002
EligibilityAny Resident Individual - Single Accounts, Two or more individuals in Joint Accounts, Blind persons, Minors, Associations, Clubs, Societies, etc. Trusts, Institutions/Agencies permitted by the RBI eligible to open a FDR Account" in single/joint names.
Minimum Investment  Period6 Months
Maximum Investment Period120 months
Minimum Deposit AmountRs.1000
Maximum Deposit AmountNo Limit
TDSTDS will be deducted as per the guidelines.

What are the benefits of Fixed Deposit schemes?

Fixed Deposit scheme comes with multiple benefits and advantages over any other investment option, making it one of the safest investment choices which you can opt for to save and park your money. When you select to invest in a Fixed Deposit investment option, you bag many benefits, including:

·  An assured return 

· You may also have the option of availing an Overdraft facility against Fixed Deposit Flexible tenure options, which depends on the tenure of your Fixed Deposit investment scheme.

· Hassle-free and convenient online application procedure enable you to get started with your Fixed Deposit account in no time.

· High Liquidity option providing you a choice of premature withdrawal of your fixed Deposit with an applicable penalty, which is subjected to applicable terms and conditions

FDR Interest Rates: for less than 2 crores (Investment amount)

Investment tenure/periodInterest Rate (per annum) : Regular customersInterest Rate (per annum) : Senior citizens
7 – 14 Days3.00%3.50%
15 – 30 Days3.00%3.50%
31 – 45 Days3.00%3.50%
46 – 90 Days3.50%4.00%
91 - 120 Days3.75%4.15%
121 to 180 Days4.30%4.80%
181 Days to <1 Year4.40%4.90%
1 Year5.00%5.50%
More than 1 Year to 2 Years5.10%5.60%
More than 2 Year to 3 Years5.30%5.80%
More than 3 Years to 5 Years5.40%5.90%
More than 5 Years to 10 Years5.50%6.00%

Interest Rates: NRE Term Deposits: Less than Rs 2 Crore

Investment PeriodInterest Rate (per annum)
1 year5.00%
>1 Year to 2 Years5.10%
>2 Year to 3 Years5.30%
>3 Years to 5 years5.40%
> 5 Years to 10 Years5.50%

Senior Citizens Benefit in FDR of Union Bank

Union Bank also offers an additional rate component only to Resident Senior Citizens on FDR up to Rs. 5 crores in all of its domestic term deposit investment schemes. This additional rate component is only applicable to domestic term deposits and is more than 0.50% over the standard rate. NRI Senior Citizens are not eligible for this additional benefit interest available to resident senior citizens.

Documentation required for opening FDR (Senior citizens)

· Senior School Leaving Certificate which indicated date of birth

· LIC policy

· Voters Identity Card

· Pension Payment Order

· Birth Certificate issued by the competent authority

· Passport

· Any other document acceptable to the bank

Frequently Asked Questions (FAQs)

1. What are fixed deposit accounts?

Fixed deposit is an investment option offered by several banks and NBFCs (Non-Banking Financial companies) in which you can save your money securely for a determined period of time. Once your investment is locked at a predetermined interest rate, it remains unaffected by any further change or fluctuation in the market. Thus, FD provides a safe and secure investment option to save your money with no risk associated.

2. What are the interest rates of Union bank for FDRs for senior citizens?

Union bank offers additional rate component to domestic term deposits which is 0.50% additional over the standard rate for senior

citizens.

Investment tenure/periodInterest Rate (per annum) : Senior citizens
7 – 14 Days3.50%
15 – 30 Days3.50%
31 – 45 Days3.50%
46 – 90 Days4.00%
91 - 120 Days4.15%
121 to 180 Days4.80%
181 Days to <1 Year4.90%
1 Year5.50%
More than 1 Year to 2 Years5.60%
More than 2 Year to 3 Years5.80%
More than 3 Years to 5 Years5.90%
More than 5 Years to 10 Years6.00%

3. What are the required documents to open FDR in Union Bank of India?

Following are essential documents to open FDR:

For Identity proof:

·        Passport

·        Aadhaar card

·        PAN card

·        Voter ID card

·        Driving licence

·        Government ID card

·        Photo ration card

·        Senior citizen ID card

For Address proof:

·        Passport

·        Telephone bill

·        Electricity bill

·        Bank Statement with Cheque

·        Certificate/ ID card issued by Post office

4. Is there any fee or additional charges which is to be paid for opening an FD account in Union Bank of India?

No fee or additional charges is payable for opening an FD account in Union Bank of India.

5. What is the minimum investment amount and tenure for FDRs?

Following are the minimum and maximum limits of investment amount and period:

Minimum Investment  Period6 Months
Maximum Investment Period120 months
Minimum Deposit AmountRs.1000
Maximum Deposit AmountNo Limit

 

Get Highest FD Returns, Earn up to 8.90 % Interest