Union Bank Fixed Deposit

⋆ Interest Rate 9.99% ⋆

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      Union Bank Fixed Deposit

      When opposed to other investment strategies, investing in a fixed deposit (FD) scheme is often thought to be better. Fixed deposit plans enable people to borrow money for a set period of time, during which they will be paying a fixed amount for the duration of the deposit. The fixed deposit scheme of Union Bank of India provides excellent returns on maturity.

      Union Bank Fixed Deposit Schemes: Different Types

      Non-Callable Term Deposits Scheme of the Union: The scheme is open to deposits of more than Rs.2 crore (single deposits only). Deposits available under the programme include Deposit Reinvest Certificates, Fixed Deposit Receipts, and Short Deposit Receipts. The duration of the deposit ranges from 61 days to three years. Premature withdrawal is only permitted under specific out-of-the-ordinary circumstances.

      MACAD (Motor Accident Claims Annuity Deposit): This arrangement allows you to deposit a one-time lump sum into an account as directed by the court or tribunal. The deposit amount will be distributed to the individual in equated monthly instalments (EMI), which will include a portion of the principal and interest. The period ranges from 36 to 120 months. For the relevant duration, the minimum monthly annuity is Rs.1,000.

      According to the Ministry of Finance, the Capital Gain Account Scheme, 1988, is followed by this scheme. By depositing the sum of capital gains or the net consideration in this account before the due date for filing IT returns, taxpayers will benefit from capital gains exemption.

      Simple Tax Saver Deposit Plan: This tax-saving FD scheme allows you to deposit in monthly instalments, lump sums, or whenever you have extra money to invest. Section 80C allows you to deposit money in small amounts over the course of a fiscal year and receive tax exemptions. This account has a gross deposit limit of Rs.1.5 lakh.

      Union Tax Saver: This is a general tax-saving FD scheme in which the deposit amount is tax-free under Section 80C of the Income Tax Act, 1961. The scheme has a five-year lock-in term, and the tenure can be extended up to ten years, depending on your needs. A minimum deposit of Rs.5,000 is expected, with subsequent deposits in multiples of Rs.1,000. You have the option of depositing up to Rs.1.5 lakh.

      Money Flex Term Deposit (MFTD): The Money Flex Term Deposit scheme provides higher returns as well as the ability to withdraw a portion of the deposited amount at any time before maturity. Accounts may be opened for both individuals and couples. The shortest time is six months, and the longest is ten years. To open the account, you must make a minimum deposit of Rs.25,000.
      DRIC (Deposit Reinvestment Certificate): A DRIC is a form of deposit reinvestment certificate.
      The interest on the money you put into this scheme is compounded quarterly and paid along with the principal. This account needs a minimum deposit of Rs.1,000 to open. The amount of money you can deposit has no upper limit.

      Monthly Income Scheme (MIS): This plan is designed for those who want a monthly fixed income with guaranteed returns at a set rate of interest. The minimum term is 12 months, and the maximum term is 120 months. The minimum sum to deposit is Rs.1,000.
      Fixed Deposit Receipt (FDR): This account functions similarly to a traditional FD, with a minimum deposit of Rs.1,000. However, depositing subsidies from government-sponsored programmes, margin money, earnest money, and court-attached/ordered deposits do not fall under the minimum deposit requirements. The term of the deposit will range from six to 120 months.

      Unique Features and Benefits of Union Bank of India FDs

      • A deposit of Rs 1,000 is needed to open an FD account. This can differ depending on the scheme you choose. All FD schemes are sold at competitive interest rates.
      • The deposit period will last anywhere from seven days to ten years.
      • Liquidity solutions that are simple and fast are available.
      • On such schemes, customers can borrow up to 90% of the value of their FD.
      • Premature account closure is not subject to a penalty if certain conditions are met.Union Bank FD
      • If the account is closed within seven days of opening, no interest is paid.
      • It is possible to nominate anyone.
      • When compared to general customers, senior citizens pay 0.5 per cent more.

      Union Bank Fixed Deposit Basic Eligibility Criteria

      The following is a list of qualified candidates to open an FD account with the Union Bank of India. It can, however, differ 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

      Fixed Deposit with the Union Bank has tax advantages.

      The Union Bank of India has two tax-saving deposit options:

      Simple Tax Savings Account: The bank provides a tax-saving FD scheme that allows you to deposit in monthly instalments (standing instructions), a single lump sum, or as and when you have extra funds to deposit. You can use any payment form you choose and make payments during the year to qualify for an IT exemption under Section 80C of the Income Tax Act of 1961. For the next five years, any deposit made would be locked in and swept out. Individuals and HUFs with a PAN number are eligible to invest in this commodity.

      Union Tax Saver Scheme: This is a general tax-saver FD scheme that allows you to make a lump-sum deposit to qualify for IT benefits under Section 80C of the Income Tax Act. This account can be opened by individuals and HUFs who have a PAN. The account may be held by a single person or a group of people. The minimum term for a deposit is five years, and the maximum term is ten years. This account is subject to a 5-year lock-in clause. The value of the deposit will vary from Rs.5,000 to Rs.1.5 lakh. The rules will deduct TDS.
      The bank deducts 10% tax at source if the interest received on your fixed deposit exceeds Rs 40,000 during the financial year.

      You can even avail yourself of a personal loan from Union Bank at affordable rates.

      FAQs

      How are interest rates for higher-value fixed deposit accounts determined? 

      The interest rates for high-value FD accounts are determined by the total value of deposits made on the same day for the same tenor by a single individual.

      Where will I find interest rates on FDs with deposits exceeding Rs.2 crore?

      The interest rates for FDs with a deposit amount of more than Rs.2 crore have not been published by the bank.

      When is interest credited and how is it calculated?

      Interest is measured on a regular basis for each commodity. Once a fifth, in April, July, October, and January of each year, it is credited.

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