Union Bank of India FD Interest Rates
About Union Bank of India
Union Bank of India was founded on 11 November 1919. It is headquartered in Mumbai. And in the 96 years of its operations, the bank has been successful in expanding across India. As of now, the Union Bank of India has over 4,200 branches all around the country.
Union Bank of India FD interest rates have always been a topic of interest for customers. The bank also offers a range of other robust product ranges of savings and term deposits along with refinancing and borrowings from abroad. Because of all this, Union Bank of India can boast of having a customer base of over 5.7 crores.
The Union Bank of India FD interest rates have been designed to cater to a wide range of their customers. These interest rates are ideal for customers who have an investment objective in their minds.
Features of Union Bank of India FD Interest Rates
Beyond the competitive Union Bank of India FD interest rates, there are many other features that customers can get by investing in an FD scheme. These features are:
- For metro and urban branches, the minimum amount for opening an FD account is INR 10,000 and in rural and semi-urban branches, the minimum amount for opening an FD account is INR 5,000
- Interest is paid on a quarterly basis. If the date of interest payment falls on a holiday, then the due date for payment is on the next working day
- Depositors have the option of requesting repayment of their deposits before maturity. In this case, the interest will only be paid for the period for which the deposit was maintained with the bank. No penalty is charged for premature closure
- Provision for nomination is available
- The Union Bank of India FD interest rates are changing with time. This means that if you don’t like these rates now, then all you need to do is wait around for a bit
Union Bank of India FD Interest Rates 2021
If you want to open an FD account with the Union Bank of India, then you need to be familiar with the Union Bank of India FD interest rates 2021. We will help you with that in this section. The Union Bank of India FD interest rates 2021 for deposits less than INR 2 crore are given below.
|Tenure||Union Bank of India FD Interest Rates 2021|
|7 days – 14 days||5.00%|
|15 days – 30 days||5.00%|
|31 days – 45 days||5.00%|
|46 days – 90 days||5.50%|
|91 days – 120 days||6.25%|
|121 days – 179 days||6.25%|
|180 days to less than 10 months||6.50%|
|10 months to 14 months||6.75%|
|Less than 14 months to 3 years||6.60%|
|Less than 3 years to 5 years||6.70%|
|Less than 5 years to 10 years||6.70%|
Benefits of Union Bank of India FD
Now that you are familiar with the Union Bank of India FD interest rates 2021, then you might also be wondering about the benefits of opening up an FD with the Union Bank of India. If that is true for you, then get rid of your doubts by going through the list given below.
- Get guaranteed returns as the rate of interest offered to customers at the time of opening of the FD remains constant throughout the tenure of the FD
- If a customer already has a Union Bank of India savings account, then he or she can open an FD account without any hassle! All you need to do is perform a few clicks or visit your nearest Union Bank of India branch
- You can benefit from compound interest if you choose an FD with reinvestment options
- Customers have the option to get a regular income with their FD account. You can get monthly or quarterly interest payout options
- A Fixed Deposit (FD) at Union Bank of India is a very flexible product. This means that you are free to choose from several Union Bank of India FD interest rates 2021, tenure, and even payout options. The tenure options also range from 7 days to 10 years
- You can also get a five years tax saving FD to save tax. This expansion is valid under Section 80C of the Income Tax Act
Types of Union Bank of India FD Interest Rates
There are different types of Union Bank of India fixed deposit accounts. These accounts have different Union Bank of India FD interest rates 2021. A list of the different types of FD accounts is given below.
- DRIC FD scheme
- Union Bank of India Monthly Income Scheme
- Union Tax Saver Deposit Scheme
- Union Monthly Plus Scheme
- Non-Callable FD Scheme
- Union Bank Easy Tax Saver Fixed Deposit Scheme
- Union Bank Short Deposit Receipt
- Union Bank Fixed Deposit Receipt
Eligibility of Union Bank of India FD
Individuals and entities falling into the categories mentioned below are eligible for applying for a Union Bank of India fixed deposit account.
- Resident individuals
- Illiterate individuals
- Blind people
- Pursanasheen ladies
How to Calculate Union Bank of India FD Interest Rates
You might think that calculating the Union Bank of India FD interest rate is a complicated task. However, you couldn’t be more wrong. To calculate the interest rates for a fixed deposit account, all you need to do is simply use the Union Bank of India FD interest rate calculator.
The calculator can help you calculate both simple interest and compound interest. What could be more simple than this? On top of this, the calculator can help make sure that you are able to make the highest amount of profit from your investment.
Factors Affecting Union Bank of India FD Interest Rates
If you want to invest in a fixed deposit account, then you should also know that FD interest rates can fluctuate due to several factors. These factors are:
- Rate of Inflation: A bank is more likely to provide a positive return to depositors if there is low inflation. In case of high inflation, the interest rates provided by the bank will take a hit
- Liquidity Conditions of the Country: Banks will not have to focus on retail fixed deposits for their needs if there is adequate liquidity in the country. This works in the favor of both the bank and the customer.
- Demand and Supply: A decrease in fixed deposit rates can be experienced if there is less demand for credit. On the other hand, banks will increase the fixed deposit rates if there is a high demand for credit
What is the maximum amount of tenure for a short deposit receipt scheme in the Union Bank of India?
In the Union Bank of India, the maximum tenure for a short deposit receipt scheme is 179 days.
What is the maximum deposit that I can make under the short deposit receipt scheme at the Union Bank of India?
There is no maximum limit to the amount of deposit that can be made under the short deposit receipt scheme at the Union Bank of India.
Are there any penalties imposed by the Union Bank of India for the premature closure of FD?
Yes, a penalty is levied in case of premature closure of FD at Union Bank of India.
What is the current highest rate that Union Bank of India is offering on its FDs?
The current highest rate of interest offered by the Union Bank of India on its FDs is 6.75%. This rate can be changed without any prior notice from the bank.