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 more 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 of time at a predetermined fixed rate of interest which is usually higher than a savings bank account.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 14 days||5%||5%|
|15 days to 45 days||5.5%||5.5%|
|46 days to 90 days||5.75%||5.75%|
|91 days to 180 days||6%||6%|
|181 days to 270 days||6.25%||6.5%|
|271 days to 364 days||6.5%||6.75%|
|365 days to 443 days||6.75%||7%|
|401 days to 3 years||6.5%||6.75%|
|Above 3 Years upto 10 Years||6.25%||6.5%|
|Note: All interest rates are updated as of 1st Aug 2023|
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.
All the above are eligible to open their fixed deposit accounts with City Union Bank.
Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer:
Investors can open FD with City Union Bank through various modes such as Internet banking, Mobile Apps and Offline:
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
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.
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.
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:
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)
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.
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.
Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover is applicable on City Union Bank FD
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