Union Bank Fixed Deposit Scheme
For a beginner investor or an investor who likes his investment to be risk-free, fixed deposits are often the first preference. And why not, this tried-and-tested investment product has been a favourite because of the benefits that it offers. Though all Indian banks offer fixed deposit accounts, Union Bank is often a popular choice. One of the leading public sector banks, Union Bank was registered on 11 November 1919. Having been around for over a hundred years, Union Bank today has over 9200 branches all over the country.
If you are planning to open a fixed deposit account, Union Bank is worth your consideration. Let us take a look at the various aspects of a Union Bank fixed deposit account.
Benefits of Union Bank Fixed Deposit Account
As an investor in Union Bank, you get to enjoy certain benefits offered by the bank. These include:
- Flexible term
You can start with as low as 6 months of FD to a maximum of 120 months. Depending upon your preference and requirement, you can choose your tenure.
- Flexible amount
With a minimum investment of INR 1000, it becomes possible for a lot of investors to begin with their FD investment. If you are also new to this investment option, you can also start with any amount you wish to.
- Invest as much as you wish
There is no maximum deposit limit. So, you have complete freedom to choose an amount of your preference.
- Select the interest payout
You get the benefit of quarterly and half-yearly interest payout features.
- Eligibility for a loan
You can also take a loan against your FD in Union Bank. So, it also acts as a strong financial asset for you.
You can choose to automatically renew your FD upon maturity for the same interest rate and tenure. If not, you can transfer your money to your savings account. For auto-renew, you have the choice to renew both principal amount and interests accumulated or renew only the principal amount and keep with you the interest earned.
Eligibility Criteria to apply for a Union Bank fixed deposit account
Let us take a quick look at the eligibility you need to fulfill in order to open a Union Bank fixed deposit account:
|Who can Apply||
Minimum: INR 1,000
Maximum: No limit
|Tenure of the FD||
Minimum: 6 months
Maximum: 120 months
Union Bank fixed deposit interest rates
Let us take a look at the interest rates for deposits less than INR 2 crore as on 30-November, 2021:
|Maturity Period||Interest Rate|
|7 days to 14 days||3.00%|
|15 days to 30 days||3.00%|
|46 days to 90 days||3.50%|
|181 days 1 year||4.40%|
|1 year to 2 years||5.10%|
|2 years to 3 years||5.30%|
|3 years to 5 years||5.40%|
|5 years to 10 years||5.50%|
Please bear in mind that these interest rates are subject to change at the sole discretion of the Bank. So, when you opt for a Union Bank Fixed Deposit Scheme, please check the current rates of interest from the official website of the bank.
Things to keep in mind when opening a Union Bank fixed deposit account
There are a few points that you must keep in mind, as an investor, before creating your fixed deposit account. These include-
- Chalk out your plan
It is important to understand your financial needs and choose an interest payout accordingly. If you wish to have a regular flow of income, you may go for a monthly or quarterly payout or you can also choose a half-yearly or yearly payout. Apart from these options, you can also choose to receive your payout along with the principal amount at the time of maturity.
- Choose the right tenure
The tenure for your FD must not be chosen in a rush. You must analyze your needs in the near future so that you don’t go for premature withdrawal of the FD as the bank may charge a penalty causing a loss to you.
- Option of Auto-Renewal
Make sure to mention your auto-renewal choice if you wish to renew your FD upon maturity. You can either withdraw all the money, keep the interests and renew the principal amount, or renew the principal amount along with FD.
Fixed deposits, being a safe and secure investment, attract a lot of customers which is why Union Bank offers high-interest rates along with the assurance of efficient customer care. Secure your future investments and receive regular income for a comfortable lifestyle through your Union Bank fixed deposit account.