City Union Bank FD Interest Rate
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 pro...Read More
City Union Bank Fixed Deposit Interest RatesNote: All interest rates are updated as of 30 Jan 2024
|For General Citizen (p.a)
|For Senior Citizen (p.a)
|7 days to 14 days
|15 days to 45 days
|46 days to 90 days
|91 days to 180 days
|181 days to 270 days
|271 days to 364 days
|365 days to 443 days
|401 days to 3 years
|Above 3 Years upto 10 Years
Types of City Union Bank’s fixed deposits
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 and there is no upper limit for investment. 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 on a monthly/quarterly/half yearly/annual basis. 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.
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 the schemes, 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.
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 The amount can be withdrawn in the multiple of ₹5,000 with interest on a pro-rata basis and continued interest is earned on the balance amount.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 on a monthly/quarterly/half yearly/annual basis. No loan facility is available however overdraft facility is available under this scheme. For senior citizens (60 years and above) additional interest rate applicable from 1st year. Auto renewal and nomination facility is also available.
Pros and cons 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 online application of City Union Bank, 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.
- Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation.
- Fixed-rate: Fixed deposits offer a fixed rate on the investment. Hence, no benefit can be availed for higher returns in cases of an increase in market interest rates.
City Union Bank’s FD eligibility criteria
- Any person in his individual capacity
- more than one person in their joint names,
- any minor jointly with a major
- Sole Proprietary concern
- Members of charitable trusts
- Educational institutions
- Private Traders
- 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):
Step 1: Download CUB mobile App, Log in to the mobile application
Step 2: Choose the type of deposit account in the E- Deposit section.
Step 3: Select the FD tenure and insert the deposit amount, interest payout instructions, nominee details etc.
Step 4: After filling out the form one can submit the details and create an FD, investor will be notified when FD is created
- Using City Union Bank’s internet banking website:
Step 1: Log in to the City Union Bank Internet Banking website
Step 2: Navigate to the “Personal” tab.
Step 3: From the menu, select “Deposits”. FD page will display on the screen.
Step 4: Click on ‘Apply Now’. This will generate an online form in which you will be required to select the FD tenure and insert the deposit amount and interest payout instructions.
Step 5: After filling out the form one can submit the details and create an FD.
- Offline by visiting the nearest branch:
Step 1: Visit the nearest City Union Bank branch
Step 2: Obtain and fill up the form to create a fixed deposit indicating the period, amount and other preferences
Step 3: Submit the form along with a copy of your Aadhar and Pan card; the bank officials will process the form and create an FD.
Step 4: On successfully processing the application, CUB Bank will provide an FD receipt.
Tax implications on City Union Bank FD
As per the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
- Taxpayers can invest in FD either through public or private sector banks.
- Individuals and HUFs can avail tax deductions by investing in tax savings FDs.
- Bank's five year tax saving FD offers exemptions under Section 80C.
- Investors cannot get loans against these FDs.
- In case of joint holders, only the first holder can get tax benefits.
How to claim tax benefits?
At the time of filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
- TDS will be deducted on the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year.
- For Resident customers, If you have submitted your PAN card details then the deduction will be at 10% per year on the interest. Without a PAN card, the bank will deduct 20% TDS per year.
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. With this method, the amount will be credited 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 is applicable on City Union Bank FD
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