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UBI FD Interest Rates

Union Bank of India is one of the most prominent public sector banks in the country. It is used in the following business areas like Personal banking, NRI Banking, Corporate Banking, etc. Union bank offers special services like CMS, E-Tax, trade finance, insurance products and also provides loans to their customers. It provides many options such as loan facility, nomination facility and premature closure of the account on its fixed deposit. Union Bank FDs interest rates offer great profit interest for every individual. 

Features & Benefits Of Union Bank Of India FD Rates

Here are the features & benefits of Ubi FD Rates-

  • Minimum deposit amount is Rs.1,000 for opening UBI FD account
  • It provides competitive interest rates against all FD schemes.
  • FD tenure- 7 days up to 10 years.
  • Available Easy and fast liquidity options.
  • It provides Loan/ Overdraft FD facility upto 90% of the FD amount
  • No penalty for deposit for premature closure in certain conditions
  • The account is closed within seven days of opening; no interest is provided.
  • Offers high interest rates of 0.5% for senior citizens as compared to regular citizens.
  • Available Nomination facility 
  • Auto-renewal facility

 

Union Bank FDs 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%

Types Of Union Bank Of India FDs

Here are the different types of Union Bank Of India FDs-

  • Union Non-Callable Term Deposits Scheme
  • Motor Accident Claims Annuity Deposit (MACAD)
  • Capital Gain Scheme
  • Easy Tax Saver Deposit Scheme
  • Union Tax Saver
  • Money Flex Term Deposit (MFTD)
  • Deposit Reinvestment Certificate (DRIC)
  • Monthly Income Scheme (MIS)
  • Fixed Deposit Receipt (FDR)
  • Short Deposit Receipt (SDR)
  • Short Term Bank Deposit Scheme (STBD)
  • NRO Fixed Deposit Receipt

 

Eligibility Criteria For Union Bank Of India Fixed Deposits

Mentioned below are the persons who are eligible to invest in Union Bank Of India fixed deposits (FD):

  • Individuals
  • Joint accounts for two or more individuals
  • Partnership firms
  • Trusts
  • Minors
  • Visually Impaired
  • Joint Hindu families
  • Limited companies and partnership firms
  • Municipalities and panchayats
  • Charitable, religious, and educational institutions
  • Associations, societies, clubs, etc.
  • Sole proprietary concerns

 

How To Calculate Union Bank Of India FD Interest Rates

The Union Bank Of India FD Calculator is used to check how much interest you will earn on your principal amount. You need to deposit the tenure (in months), amount, rate of interest, and the kind of fixed deposit scheme you need to apply for – and the calculator will calculate the number present to you with a breakup of the interest earned and the maturity amount. Using Union Bank Of India FD Calculator offers you exact, error-free, and accurate results.

Moreover, there are many online sites that help you to instantly calculate the UBI FDs interest earned on your FD. You can use such online methods to calculate the interest generated on your Union Bank Of India FDs. Many differences can enter as you want, to determine how much amount you want to invest and the interest generated on the deposited principal amount.

Factors Affecting Union Bank Of India FDs Rates

  1. It provides a short-term holding period of one month for the depositor that can avail an interest rate of 5.5% per annum. Moreover, for the tenures of 2-3 months, the rates are increased by 1% to 6.5% per annum. Furthermore, the returns can be pegged at 6.75% per annum for the holding period of four months, and for the holding period of 6-9 months, it is certainly increased by 0.5% to 7.25% per annum.
  2. The rate of interest is calculated at 7.55% per annum for the holding period of one year,, and the returns are pegged at 7.5% per annum when the maturity period increases to 4-5 years. Moreover, the returns are calculated at 7.25% per annum for the holding period exceeding five years and up to ten years,. Under the mid and long-term deposits, these are the highest rates offered by the bank, and for the deposit period between 2-3 years, the rates remain the same at 7.55% per annum.
  3. UBI Fds provide an additional 0.5% of interest per annum for senior citizens on the given rates. Therefore, the senior citizens can avail 8% per annum for the deposit period of one year, and for the holding period of 2-3 years, it eventually gets increased to 8.05% per annum. Moreover, for the tenure of 4-5 years, it remains the same at 8% per annum, and for the tenures above five years, it becomes 7.75% per annum.

 

FAQs:

What is the Union Bank of India minimum amount required to open an FD?

In UBI Fixed Deposit a minimum amount of Rs. 10,000 is required for open FDs and Rs. 5,000 in Rural and Semi-urban branches., the minimum amount of Rs. 5000 for senior citizens.

What is the Union Bank of India’s minimum and maximum period for a fixed deposit?

Union Bank Of India FDs minimum period is 7 days and the maximum period is 10 years.

What is the Union Bank’s highest FD rate?

For regular citizens, the highest FD interest rate in Union Bank is 5.6% for a tenure of 5-10 years. For a tenure of 5-10 years, the highest Union Bank FD interest rate is 6.1%. for senior citizens.

Can a customer open an online Union Bank FD account?

Yes, the Union Bank Of India provides an internet banking facility for investors to open a Union Bank FD account online.

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