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City Union Bank Fixed Deposit

Updated 06 Dec 2023

City Union Bank of India is a private-sector bank established in Kumbakonam, Tamil Nadu. Initially, the bank was named Kumbakonam Bank Limited and was incorporated on October 31, 1904.

 

The bank provides various services such as current accounts, saving accounts, fixed deposits, loan facilities, MSME accounts, and NRI accounts. The bank is one of the oldest banks in India and has more than 700 branches.

 

This article provides insight into the City Union Bank (CUB) fixed deposit. Fixed Deposits (FDs) are a secured way of investing wherein money can be deposited for a fixed period at a predetermined fixed rate of interest, usually higher than a savings bank account.

Types of City Union Bank’s fixed deposits

  • Standard FD
  • CUB Income Tax Saver Deposit
  • CUB Flexifix Deposit Scheme

Benefits of Investing in City Union Bank’s FD

One can make investments of very small amounts, hence promoting savings.

  • One can save tax by investing in tax-saving fixed deposits.
  • Using the City Union Bank online application, one can easily deposit in a fixed deposit account by opening an account with the bank.
  • The senior citizen fixed deposit interest rates in City Union Bank range between 5% to 7.5% p.a. for an available minimum and maximum investment duration.
  • The amount invested with the Bank is covered by DICGC insurance for the total sum of ₹ 5 lakhs.
  • Auto renewal facility is available.
     

Features of CUB Fixed Deposits

Standard FD

  • A standard FD can be started with a minimum investment of ₹100 and multiples thereof for individuals, ₹1,000 and multiples thereof for MSMEs, and ₹10,000 and multiples thereof for corporates. 
    There is no upper limit for investment. 
  • A bulk deposit of ₹1 crore and above is accepted. 
    It can be for a period ranging from 7 Days to 10 years.
  • The interest is payable monthly/quarterly/half yearly/annual.
  • This is usually the preferred FD option chosen by investors.
  • Investors can also avail of loans or overdraft facilities against their FDs. Pre-closure and auto-renewal facility is available.
  • Based on the tenor, the interest rate ranges from 5.00% to 7.00% for the general public and 5.00% to 7.50% for senior citizens.

CUB Income Tax Saver Deposit

  • Unlike standard FDs, investors can not withdraw their deposits before 5 years but can avail of tax deduction under section 80C up to a maximum of ₹1.5 lakhs in a given financial year.
  • Resident individuals can open the FD in single as well as joint format. 
  • Even Hindu Undivided Family (HUF) can open this FD. Under this scheme, the bank provides two categories, Silver and Gold. 
    In the Tax Saver Silver scheme, investors can start depositing from ₹100, while the Tax Saver Gold scheme accepts deposits of ₹1,000. 
  • In both schemes, the maximum deposit amount cannot exceed ₹1.5 lakhs in a given financial year.
  • In the Tax Saver Silver scheme, the interest is paid monthly/quarterly, while in the Tax Saver Gold scheme, cumulative interest is paid on maturity.
  • Loans against this scheme are not available. Premature closure is not available. Nomination facility is available.Based on the tenor, the interest rate ranges from 5.00% to 7.00% for the general public and 5.00% to 7.50% for senior citizens.

CUB Flexifix Deposit Scheme

  • This scheme is a combination of the benefits of fixed deposit and flexible withdrawal.
  • This scheme accepts investments from ₹10,000 and then in multiple of ₹5,000 with a minimum period of 30 days up to 5 years.
  • The amount can be withdrawn in the multiple of ₹5,000 with interest on a pro-rata basis, and continued interest is earned on the balance amount.
  • Simple interest is payable monthly/quarterly/half-yearly/annually. No loan facility is available; however overdraft facility is available under this scheme.
  • For senior citizens (60 years and above) additional interest rate is applicable from 1st year. Auto-renewal and nomination facility is also available.
  • Based on the tenor, the interest rate ranges from 5.00% to 7.00% for the general public and 5.00% to 7.50% for senior citizens.

City Union Bank’s FD Eligibility Criteria

  • Any person in his capacity
  • More than one person in their joint names,
  • Any minor jointly with a major
  • Sole Proprietary concern
  • Members of charitable trusts
  • Educational institutions
  • HUF
  • Clubs
  • Private Traders 
  • Merchants
  • Agents
  • Professionals
  • Partnerships Firms
  • Societies & Corporates

All the above are eligible to open their fixed deposit accounts with City Union Bank. 

Documents Required for City Union Bank’s FD Account

Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer:

  • FD Application form
  • Government ID proof such as (Aadhar Card, PAN card voter ID card, driving license, ID issued by postal authorities, NREGA Job Card, letter from recognised public authority or public servant etc)
  • Address Proof (Passport, voter ID card, Bank account statement, letter from employer, ID issued by postal authorities, NREGA Job Card, Consumer passbook issued by Gas agency, rent agreement Utility bills such as phone bills, electricity bills, driving licenses, Aadhar card etc)

How to open an FD with City Union Bank?

Investors can open FD with City Union Bank through various modes such as Internet banking, Mobile Apps and Offline:

 

Using City Union Bank’s mobile application (App)

  • Download CUB mobile App, Log in to the mobile application 
  • Choose the type of deposit account in the E- Deposit section.
  • Select the FD tenure and insert the deposit amount, interest payout instructions, nominee details etc. 
  • After filling out the form, one can submit the details and create an FD; the investor will be notified when FD is created 

Using City Union Bank’s Internet banking website

  • Log in to the City Union Bank Internet Banking website
  • Navigate to the “Personal” tab. 
  • From the menu, select “Deposits”. FD page will display on the screen. 
  • Click on ‘Apply Now’. This will generate an online form in which you must select the FD tenure and insert the deposit amount and interest payout instructions.
  • After filling out the form, one can submit the details and create an FD.

Offline by visiting the nearest branch

  • Visit the nearest City Union Bank branch
  • Obtain and fill up the form to create a fixed deposit indicating the period, amount and other preferences
  • Submit the form along with a copy of your Aadhar and Pan card; the bank officials will process the form and create an FD.
  • CUB Bank will provide an FD receipt on successfully processing the application.  

Breaking an FD Account at City Union Bank

Closing an FD Account

  • Navigate to the Union Bank's official website.
  • Tap on 'General Services'.
  • From the dropdown, choose 'Services'.
  • Opt for 'FD Closure Requests'.
  • The FD will be processed for closure on the next business day.

Premature Withdrawal of FD Account

  • Head over to the Union Bank's main site.
  • Select 'General Services'.
  • From the available options, pick 'Services'.
  • Click on 'FD Premature Withdrawal'.
  • Your FD will be scheduled for early withdrawal during the working day.

FAQs

How is a tax-saver FD different from a regular FD?

A tax-saving FD has a lock-in period of 5 years. No premature withdrawals, overdrafts, or loan facilities are available under a tax-saving FD. Whereas one can have a regular FD for any tenure as per individual’s choice, and they are eligible for premature withdrawals, loans and overdraft facilities.

How can I break my City Union Bank FD?

Offline: Place a request at your nearest City Union Bank Branch. This method will credit the amount to your account within 24-48 hours.
Online: Log in to the app or website and select the FD that you want to break, click on Premature Withdrawal, and the amount will be credited on the same day.

Is the ₹5 lakhs DICGC insurance cover applicable on City Union Bank FD?

Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover applies to City Union Bank FD.

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City Union Bank

Calculate City Union Bank FD Returns

₹1,00,000
6%
365
days
daysmonthsyears
Maturity Amount₹1,06,000

Understanding Fixed Deposit

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