Investment in a fixed deposit (FD) scheme is often considered safer as compared to investing in other investment options. Fixed deposit schemes allow people to invest money for a designated period, post which a fixed rate is to be paid for the deposit period. Union Bank of India’s fixed deposit scheme offers great returns upon maturity.
RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.
Highlights for 2025 Fixed Deposit Scheme of Union Bank of India
Tenure | 7 days to 10 years |
Senior Citizen Interest Rates | 5.00% to 8.00% p.a. |
Public Interest Rates | 5.00% to 7.50% p.a. |
Highest Interest Rates for Public | 7.50% p.a. |
Highest Interest Rates for Senior Citizens | 8.00% p.a. |
Premature Withdrawal | In case of Pre-closure of retail term deposits (less than Rs. 2.00 crores), which have run for 7 days or above, interest to be paid at 1.00% less than the applicable rate (as on the date of opening of the deposit) for the period for which it has actually remained with the bank or contracted rate, whichever is lower. |
Minimum Deposit Amount | Rs 1,000 |
FD Interest Rates 2025 of Union Bank of India
Please note that the interest rates provided in the table below are applicable for a deposit amount up to Rs.3 crore and are effective from 2 August 2024.
| Fixed Deposit Tenure | Interest Rate for Regular Customers (% p.a.)* | Interest Rate for Senior Citizens (% p.a.)* |
| 7 to 14 days | 3.50 | 4.00 |
| 15 to 30 days | 3.50 | 4.00 |
| 31 to 45 days | 3.50 | 4.00 |
| 46 to 90 days | 4.50 | 5.00 |
| 91 to 120 days | 4.80 | 5.30 |
| 121 to 180 days | 5.00 | 5.50 |
| 181 days < 332 days | 6.35 | 6.85 |
| 333 days | 7.40 | 7.90 |
| 334 days < 1 year | 6.35 | 6.85 |
| 1 year | 6.80 | 7.30 |
| >1 year to 398 days | 6.80 | 7.30 |
| 399 days | 7.25 | 7.75 |
| 400 days < 2 years | 6.60 | 7.10 |
| >2 years to 996 days | 6.60 | 7.10 |
| 997 days | 6.40 | 6.90 |
| >998 days < 3 years | 6.60 | 7.1 |
| 3 years | 6.70 | 7.2 |
| >3 years to 5 years | 6.50 | 7.00 |
| >5 years to 10 years | 6.50 | 7.00 |
*Interest rates are subject to change.
Types of Union Bank of India FD Schemes
Fixed Deposit Receipt (FDR)
This regular FD account requires a minimum deposit of Rs. 1,000, except for deposits from government subsidies, margin money, earnest money, or court-ordered deposits. Tenure ranges from 6 to 120 months.
Short Deposit Receipt (SDR)
With a minimum deposit of Rs. 1,000, SDR offers tenures from 7 to 179 days. Interest is calculated quarterly and paid half-yearly in March and September, depending on maturity.
Money Flex Term Deposit (MFTD)
This scheme combines high returns with partial withdrawal flexibility. Accounts can be single or joint. Tenure ranges from 6 months to 10 years. A minimum deposit of Rs. 25,000 and a maximum of Rs. 2 crore are required.
Cumulative Deposit Scheme
Ideal for small investors, this scheme allows easy monthly installments starting at Rs. 50. Tenure ranges from 6 to 120 months, catering to lower to upper middle-income groups and salaried individuals.
Deposit Re-Investment Certificate (DRIC)
Interest is compounded quarterly and paid with the principal at maturity. A minimum deposit of Rs. 1,000 is required, with no upper limit. Tenure ranges from 6 to 120 months.
Special Features and Benefits of Union Bank of India FD
- The minimum amount required to open an FD account is Rs 1,000. This may vary based on the scheme you choose.
- Competitive interest rates are offered against all FD schemes.
- The deposit tenure ranges from 7 days up to 10 years.
- Easy and fast liquidity options are available.
- Customers can avail of loan facility up to 90% of the FD amount on certain schemes.
- No penalty is charged for premature closure of the account subject to certain conditions.
- No interest is provided if the account is closed within seven days of opening.
- Senior citizens get 0.5% higher rates as compared to regular customers.
- Nomination facility is available.
- An automatic renewal facility is available. That is the account will be renewed for the same tenure, upon maturity of the first cycle, at the prevailing rates.
Basic Eligibility Criteria for Union Bank of India FD
Here is a list of eligible candidates to open an FD account with Union Bank of India. However, it may vary for certain schemes:
- Individuals
- Joint accounts for two or more individuals
- Partnership firms
- Trusts
- Minors
- Blind persons
- Illiterate persons
- Joint Hindu families
- Limited companies and partnership firms
- Municipalities and panchayats
- Charitable, religious, and educational institutions
- Associations, societies, clubs, etc.
- Sole proprietary concerns
Documents Required
- Proof of Identity
- Passport
- PAN card
- Voter ID
- Driver’s license
- Aadhaar card
- Proof of Address
- Passport
- Aadhaar card
- Bank statement with a cheque
- Proof of Date of Birth
- Service discharge certificate
- PAN card
- Aadhaar card
- Voter ID
Tax Benefits on Union Bank of India Fixed Deposit
Union Bank of India offers the following tax-saver deposit schemes:
Easy Tax Saver Deposit Scheme
The bank offers a flexible tax-saver FD scheme that allows you to make deposits in monthly instalments (standing instructions), single lump sum, or as and when you get surplus funds at hand for depositing. This tax-saver FD scheme allows you to make deposits through monthly instalments, lump sum, or as and when you have surplus funds for investing.
You can deposit money in small bits throughout a financial year and get IT exemptions under Section 80C. The maximum deposit limit for this account is Rs.1.5 lakh. You can choose the payment method you are comfortable with and make payments throughout a financial year and still get IT exemption under Section 80C of the Income Tax Act, 1961.
Any deposit made will be locked in and swept out for five years. All individuals and HUFs who have PAN are eligible to deposit money in this product.
Union Tax Saver Scheme
This is the general tax-saver FD scheme that requires you to deposit a lump sum to avail IT benefits under Section 80C of the Income Tax Act. Individuals and HUFs having PAN can open this account. The account can have a single holder or joint holder.
The minimum deposit tenure is 5 years, and the maximum term can go up to 10 years. A lock-in period of 5 years is applicable to this account. The deposit can be from Rs.5,000 up to Rs.1.5 lakh. TDS will be deducted as per the prescribed guidelines.
If the interest earned on your fixed deposit is more than Rs 40,000 during the financial year, the bank deducts tax at the source @ 10%. Further, the tax levied on the returns is dependent on the tax bracket you fall into irrespective of the interest rate or other factors.
Capital Gain Scheme
This scheme abides by the Capital Gain Account Scheme, 1988, as stated by the Ministry of Finance. Taxpayers can avail the benefit of exemption from capital gains by depositing the amount of capital gains or the net consideration in this account before the due date for filing IT returns.
FD Interest Rate Calculator
Our easy-to-use FD calculator page helps you predict the returns you may receive upon depositing your money in an FD account.