Union Bank of India is a leading public sector bank established in 1919 in Mumbai with a majority shareholding of the Government of India. Recently, Andhra Bank & Corporation Bank have been amalgamated into Union Bank. Post amalgamation, the bank has more than 8700 branches all over India along with an international presence. This article provides more insight about fixed deposit schemes of Union bank.
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||3%||3.5%|
|15 days to 30 days||3%||3.5%|
|31 days to 45 days||3%||3.5%|
|46 days to 90 days||4.05%||4.55%|
|91 days to 120 days||4.3%||4.8%|
|121 days to 180 days||4.4%||4.9%|
|181 days to less than 1 year||5.25%||5.75%|
|>1 year to 398 Days||6.3%||6.8%|
|Note: All interest rates are updated as of 1st Aug 2023|
Are eligible to open their fixed deposit accounts with Union bank.
One can start a fixed deposit with a minimum investment of Rs. 1000/-, in cumulative deposit scheme it is as low as Rs 50 also.
Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer
Note- The above requirements are waived if the customer is already an account holder of the Bank
1. If you already hold a Savings or Current Account with Union bank, a Fixed Deposit can be opened using the below procedure.
Step 1: Log in to the Union ‘vyom’ mobile application
Step 2: Click on ‘Open FD’ in the Quick Task section. By this, you will get an online form in which you will be required to
Step 3: Select the FD tenure and insert the deposit amount. After filling the form once can submit the details and create an FD.
Step 1: Login to the Union Internet Banking website
Step 2: Navigate to the “Online Deposit” tab.
Step 3: From the menu, select “Fixed Deposits opening”. This will generate an online form in which you will be required to select the FD tenure and insert the deposit amount.
Step 4: After filling the form one can submit the details and create an FD.
Step 1: Visit nearest 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 would process the form and create an FD.
2. If you are a new customer of Union bank and do not hold any account, you can visit the nearest Union bank with the Original PAN & Aadhar as well as the soft copy of the same. The bank official will help you to directly open an FD without having any savings / current account.
3. Also, there is an option to create a savings/ current account with the bank and then open an FD using a Mobile application or Internet Banking Facility.
The Tax applications remain the same irrespective of the bank in which you open the fixed deposit.
TDS is deducted as per IT rules on interest earned more than ₹ 40,000/- per annum (₹ 50,000 for resident senior citizens) during the financial year @ 10% as per Section 194A of the Income-tax Act,1961..
However, if your total income is below the taxable limit, you can submit Form 15G or Form 15H (For senior citizens) to the bank and request them not to deduct any TDS.
One can invest in Fixed Deposits when interest rates are high or when someone has retired and aims to have a safe investment.
Investing in a Fixed Deposit is a liquid asset and can be beneficial in emergency situations. For example, in a bear market when equity investments are down and you are in the need of money, premature FD withdrawal can be more beneficial than withdrawing investments by incurring losses.
It is also a good investment to have post-retirement so that the money can be used in case there is a medical emergency.
Yes, for such extreme situations, each depositor is insured up to a maximum of ₹5 lakh (for both principal and interest). In case you have multiple fixed deposits with several banks, the insurance coverage cap is separately applied to the amount in every bank.
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 the choice of an individual and they are eligible for premature withdrawals
Offline: Place a request at your nearest 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 open the FD that you want to break, click on Premature Withdrawal and the amount will be credited within the same day.
Yes, Union bank has a sweep facility. Any balance in excess of the minimum specified balance (in multiples of ₹ 10,000) in the ‘Savings Flexi Deposit Scheme’ will be swept out to form an FD with no premature-penalty clause.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.