Union Bank of India Fixed Deposit Rates and Schemes Explained

Union Bank of India offers a range of fixed deposit schemes to cater to various customer needs.

The bank's fixed deposit rates vary depending on the tenure of the deposit, with rates increasing as the tenure lengthens. For example, the interest rate for a 1-year fixed deposit is 5.50% per annum.

Union Bank of India also offers special schemes for senior citizens, which provide higher interest rates compared to regular fixed deposits. The interest rate for senior citizens is 0.50% higher than the regular rate.

To open a fixed deposit account, customers can visit any Union Bank of India branch or use the bank's online banking platform.

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Union Bank of India offers a range of fixed deposit rates for both general citizens and senior citizens.

The interest rates vary depending on the tenure of the deposit, with senior citizens receiving a higher rate than general citizens for the same tenure.

For deposits ranging from 7 days to 14 days, the interest rates are 3% for general citizens and 3.5% for senior citizens.

The rates remain the same for deposits between 15 days to 30 days and 31 days to 45 days, at 3% for general citizens and 3.5% for senior citizens.

Deposits between 46 days to 90 days earn higher interest rates, with 4.05% for general citizens and 4.55% for senior citizens.

Here's a breakdown of the interest rates for different tenures:

For deposits of 1 year or more, the interest rates are 6.75% for general citizens and 7.25% for senior citizens.

Fixed Deposit Features are designed to help you grow your savings over time.

The minimum deposit amount for a Union Bank of India fixed deposit is ₹1,000.

You can choose from a variety of tenures, ranging from 7 days to 10 years, to suit your needs.

Fixed deposits are a great way to earn a higher interest rate compared to a regular savings account.

The interest rate on Union Bank of India fixed deposits varies depending on the tenure, with longer tenures offering higher rates.

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As a senior citizen, you're eligible for special FD rates that are marginally higher than those offered to regular citizens.

Union Bank of India offers an additional 0.50% interest rate for senior citizens, making their FD rates more attractive.

To qualify for this higher rate, you must have completed 60 years of age, and the FD must be for a term of one year or more.

You can even open a joint account with someone under 60, but make sure the senior citizen's name is listed as the first name on the FD application.

This means you can still enjoy the benefits of a joint account while getting the higher interest rate on your FD.

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If you need to break your fixed deposit, Union Bank of India allows partial or complete withdrawal, but be aware that a penalty may apply.

The bank charges no penalty for premature closure of Term Deposits below Rs. 1 crore.

However, for Term Deposits of Rs. 1 crore and above, a penalty of 1% on the interest rate applicable for the period the deposit has remained with the bank will be levied.

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You can use the Union Bank of India FD Calculator to help you identify how much interest you will earn on your principal amount. All you need to do is enter the deposit amount, tenure (in months), rate of interest and the kind of fixed deposit scheme you wish to apply for.

The calculator will do the number crunching and present you with a breakup of the interest earned and the maturity amount. Using a calculator provides you with instant, error-free and accurate results.

Alternatively, you can use online resources to calculate the interest earned on an FD. You can enter as many variations as you want, to help you determine how much you want to invest and the interest earned on the principal amount deposited.

The Union Bank of India FD calculator uses the formula A = P x (1 + r/n)nt to calculate the maturity amount. Where 'A' refers to the sum at maturity, 'P' signifies the sum invested, 'r' is the rate of interest divided by 100, 'n' is the frequency of interest calculation, and 't' is the term for an investment.

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To simplify matters, let's illustrate FD calculation with an example. Sheetal is a 26-year-old woman, looking to invest in Union Bank FDs. The investment sum is Rs.2 lakh. She picks the deposit's maturity term to be 5 years. Thus, by consulting the table above, she can determine her interest eligibility to be 5.8%.

The formula used by the Union Bank FD calculator for compound interest is: Maturity Amount = Principal * (1 + Rate/100)^Tenor. For Example: Let's say you want to invest Rs. 8,00,000 in a Union Bank Fixed Deposit for 4 years at an interest rate of 6.9% per annum.

Here's a breakdown of the benefits of using the Union Bank FD calculator:

You can also use other online FD calculators such as HDFC Bank FD Calculator, ICICI Bank FD Calculator, Axis Bank FD Calculator, and many more.

Fixed Deposit Schemes are a popular option for Indian investors, offering safety, guaranteed returns, and flexibility. Financial institutions, such as Bajaj Finance, SBI, HDFC, and Post Office deposits, provide higher rates for senior citizens.

One of the key features of Fixed Deposits is that they offer higher interest for longer tenures. This means that the longer you invest your money, the higher the returns you can expect.

Union Bank of India offers several types of Fixed Deposits, including Standard FD, Special FD, Union Tax Saver, Cumulative Deposit Scheme, Monthly Income Scheme, Deposit Re-Investment Certificate, Money Flex Term Deposit, and Union Callable Term Deposit Scheme.

The minimum investment for a Standard FD is ₹1000, and it can be held for a period ranging from 7 Days to 10 years. This is a flexible option that allows investors to choose a tenure that suits their needs.

Special FDs, on the other hand, offer higher interest rates than Standard FDs and are popular among investors. Union bank keeps launching Special FDs for different durations, currently offering Special FDs for 400 days, 599 days, and 700 days.

The Union Tax Saver scheme allows investors to avail of income tax deduction under section 80C up to ₹1.5 lakhs in a year, but comes with a lock-in period of 5 years.

Here are the types of Union Bank Of India Fixed Deposits:

These Fixed Deposit Schemes offer a range of options for investors to choose from, depending on their needs and preferences.