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UBI FD Interest Rates 2020-2021

About Union Bank of India

Union Bank of India was founded on 11 November 1919. The bank has its headquarter in Mumbai, India, and has been operating for over 100 years. During that time, the bank has crossed leaps and bounds within the country and in the world.

As of now, the Union Bank of India has over 4200 branches located in India. The bank provides great savings and term deposit schemes. One can also get refinance and borrowings from abroad. The bank also rolled out very competitive UBI FD interest rates 2020 and 2021 recently.

Because of all these reasons, the Union Bank of India has a happy customer base of over 5.7 people. This is why if you are planning to invest in a Union Bank of India fixed deposit, then you are making a great decision. And we are here to help you with everything that you need to know before investing in a Union Bank of India fixed deposit.

Features of Union Bank FD

Union Bank of India provides its customers with amazing features. Let’s look at some of those features before proceeding further.

  • Highly competitive UBI FD interest rates 2020 and 2021
  • Flexible FD tenure ranging from 7 days to 10 years
  • Availability of loans
  • Premature closure
  • Nomination facility
  • Joint accounts access

 

UBI FD Interest Rates 2020 and 2021

One of the biggest factors that you will have to consider before investing in a Union Bank of India fixed deposit is the interest rate. And to make this consideration simpler for you we have mentioned all the UBI FD interest rates 2020 and 2021 for you in this section.

First, we’ll look at the interest rates applicable for deposits less than INR 2 crore.

Tenure Fixed Deposit Interest Rates for General Public
7 days to 14 days 3.00%
15 days to 30 days 3.00%
31 days to 45 days 3.00%
46 days to 90 days 3.75%
91 days to 120 days 4.25%
121 days to 180 days 4.30%
181 days to less than 1 year 4.50%
1 year 5.25%
More than 1 year to 2 years 5.30%
More than 2 years to 3 years 5.50%
More than 3 years to 5 years 5.55%
More than 5 years to 10 years 5.60%

The Union Bank interest rates for tax saving fixed deposits are given below.

Tenure Interest Rate
5 years 5.55%
More than 5 years to 10 years 5.60%

The Union Bank fixed deposit interest rates for NRE deposits are mentioned below.

Tenure Interest Rate
1 year 5.25%
More than 1 year to 2 years 5.30%
More than 2 years to 3 years 5.50%
More than 3 years to 5 years 5.55%
More than 5 years to 10 years 5.60%

The Union Bank of India FCNR interest rates are mentioned in the table below.

Tenure CAD JPY USD AUD EUR
1 year to less than 2 years 0.59% 0.01% 0.81% 0.18% 0.01%
2 years to less than 3 years 0.75% 0.07% 0.74% 0.27% 0.01%
3 years to less than 4 years 1.03% 0.09% 1.00% 0.48% 0.01%
4 years to less than 5 years 1.27% 0.10% 1.17% 0.72% 0.01%
5 years 1.50% 0.11% 1.33% 0.94% 0.08%

Benefits of UBI FD Interest Rates 2020 and 2021

The benefits that you can get by learning about interest rates are:

  • Brings you one step closer to investing in a fixed deposit plan
  • The tenure is flexible and ranges from 7 days to 10 years
  • A loan facility is available
  • Premature closure is allowed
  • Nomination can be added
  • A joint account can be opened

 

Types of UBI FD Interest Rates 2020 and 2021

There are different fixed deposit interest rates for different fixed deposit schemes. These fixed deposit schemes are:

  • DRIC FD scheme
  • Union Bank of India Monthly Income Scheme
  • Union Tax Saver Deposit Scheme
  • Non-Callable FD Scheme
  • Union Monthly Plus Scheme
  • Union Bank Short Deposit Receipt
  • Union Bank Easy Tax Saver Fixed Deposit Scheme
  • Union Bank Fixed Deposit Receipt

 

Eligibility of Union Bank of India FD

You are eligible for a Union Bank of India fixed deposit policy if you follow within one of the categories mentioned below.

  • Resident individuals
  • Illiterate persons
  • Minors
  • Blind persons
  • Clubs
  • Societies
  • Trusts
  • Associations
  • Agencies
  • Institutions

 

How to Calculate UBI FD Interest Rates 2020 and 2021

The interest rate on a fixed deposit can be calculated by using the simple interest method and the compound interest. The simple interest method has a fixed rate of interest for a fixed period of time. This will be calculated by multiplying the rate of interest, the principal amount, and the tenure in years. In the case of compound interest, the interest associated with the bank account, loan, or investment increases exponentially over time.

Factors Affecting UBI FD Interest Rates 2020 and 2021

There are several factors that affect the interest rates of the Union Bank of India. Do you want to learn about these factors? If yes, then go through the list of factors that are mentioned below.

  • Demand for Money: In a growing economy, money is in demand. On the other hand, companies avoid borrowing money if the economy is low. This directly has an effect on the interest rates of the bank.
  • Supply of Money: Just like any other commodity, if the supply of money increases, other things remain the same and the interest rates go down.
  • Fiscal Deficit and Government Borrowing: A fiscal deficit is often a result of government expenditure exceeding the government revenue. To fund this deficit, the government resorts to borrowing. This directly has an effect on the interest rates provided by the bank.
  • Inflation: Inflation refers to a scenario where the prices of all goods and commodities are set by taking into account the general price increase in the economy. Interest rates are no exception to this rule.
  • Global Interest Rates and Foreign Exchange Rates: Integration of the Indian economy with the global economy has increased in comparison to what it was before the acceptance of globalization. This points to the fact that the interest rates in the economy are set in line with the global trends in interest rates.

Further, it should be noted that attractive interest rates bring in capital and support the foreign exchange rate. Hence, changes in interest rates can be used to influence the exchange rates.

FAQs:

What is the maximum tenure for a Union Bank of India short deposit receipt scheme?

The Union Bank of India short deposit receipt scheme comes with a maximum tenure of 179 days.

What is the maximum amount of deposit that can be made under a Union Bank of India fixed deposit scheme?

There is no maximum limit placed on the amount of deposit that can be made under a Union Bank of India fixed deposit scheme.

I have a Union Bank of India fixed deposit scheme. Will there be any penalties if I opt for premature closure?

Yes, a penalty is levied in cases of premature closure of fixed deposits.

What is the highest interest rate for fixed deposits of the Union Bank of India?

As of now, the highest interest rate for the Union Bank of India fixed deposit scheme is 5.60%. This interest rate can change without any prior notice to the customers.

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