Union Bank of India Fixed Deposit
Union Bank of India (UBI), a premier nationalised bank, was established in Mumbai on 11th November 1919. Over 100 years, the bank has grown to have a presence in every state and union territory in the country. The bank serves a vast clientele of more than 5.7 crores through its 4200+ branches across India. The bank has achieved 100% computerisation of its branches. The bank offers a variety of technologically advanced products like Core Banking Solutions, Internet banking, and Mobile Banking.
Why UBI Fixed Deposits?
Union Bank of India has various Fixed Deposit investment products to cater to all sections of society. It offers monthly interest payout options to people in need of a steady and regular income. Quarterly interest payout options are also available. Reinvestment deposit products of UBI provide the perfect opportunity to see your money grow. The bank offers a slew of deposits to cater to the needs of the non-resident Indian community. The tax-saving UBI deposit product allows Indian resident individuals to avail concessions under Section 80C of the IT Act.
UBI Fixed Deposits - Features and Benefits
- Extended range of deposit products to suit every Indian individual
- Deposit products available to non-individuals like firms, companies, and associations
- Non-resident Indian deposit products
- Competitive rates of interest
- No penalty on premature withdrawal of deposits
- Monthly and quarterly interest payout options
- Cumulative deposit products
- Reinvestment of interest to ensure high returns
- Facility to open accounts online
- Loans and overdrafts available against FDs
- Tax-saving products
UBI Fixed Deposits - Rate of Interest
Interest rates on domestic deposits for amounts less than 2 Crores - with effect from 27.02.2019
Deposit Tenure | Interest rate (% per annum) |
7 to 14 days |
5.00 |
15 to 30 days |
5.00 |
31 to 45 days |
5.00 |
46 to 90 days |
5.50 |
91 to 120 days |
6.25 |
121 to 179 days |
6.25 |
180 days |
6.50 |
181 days to < 10 months |
6.50 |
10 months to 14 months |
6.75 |
More than 14 months to 3 years |
6.60 |
More than 3 years to 5 years |
6.70 |
More than 5 years to 10 years |
6.70 |
- Contact the nearest branch of UBI for interest rates on deposits of 2 Crores and above
- Senior Citizens get the benefit of an additional 0.50% if the minimum deposit tenure is one year
NRE Term Deposit rates - with effect from 27.02.2019
Deposit Tenure | < 2 Crores | 2 Crores to 10 Crores | More than 10 Crores |
1 year |
6.75 |
6.95 |
6.80 |
More than 1 year to 3 years |
6.60 |
6.70 |
6.70 |
More than 3 years to 5 years |
6.70 |
6.70 |
6.70 |
More than 5 years to 10 years |
6.70 |
6.70 |
6.70 |
Interest rates on FCNR (B) Term Deposits - with effect from 01.08.2019
Currency | 1 year to < 2 years | 2 years to < 3 years | 3 years to < 4 years | 4 years to < 5 years | 5 years |
USD < 300,000 |
3.04 |
2.71 |
2.75 |
2.72 |
2.68 |
USD >= 300,000 |
3.04 |
2.81 |
2.85 |
2.82 |
2.78 |
GBP |
1.68 |
1.43 |
1.42 |
1.44 |
1.36 |
EUR |
0.59 |
0.32 |
0.35 |
0.38 |
0.34 |
JPY |
0.95 |
0.67 |
0.66 |
0.66 |
0.56 |
AUD |
1.94 |
1.61 |
1.62 |
1.74 |
1.70 |
CAD |
3.10 |
2.57 |
2.53 |
2.52 |
2.42 |
Interest rate on RFC Deposits - with effect from 01.08.2019
Tenure | USD < 300,000 | USD >= 300,000 | GBP | EUR |
6 months to < 1 year |
3.04 |
3.04 |
1.68 |
0.59 |
1 year to < 2 years |
3.04 |
3.04 |
1.68 |
0.59 |
2 years to < 3 years |
2.71 |
2.81 |
1.43 |
0.32 |
3 years |
2.75 |
2.85 |
1.42 |
0.35 |
UBI Fixed Deposits - Types of Deposits
- Regular Fixed Deposits
Fixed Deposits | |
Eligibility |
|
Quantum of deposit |
|
Tenure |
|
Payment of interest |
Interest is payable every quarter |
Premature payment |
Allowed |
Nomination |
Available |
Monthly Income Scheme | |
Eligibility criteria |
All resident Individuals in single/joint names |
Features |
|
Deposit tenure |
The minimum period is 6 months, and the maximum is 120 months |
Nomination |
Available |
Premature payment |
Allowed |
Tax deduction at source |
As per rules |
Deposit Reinvestment Certificate | |
Eligibility |
|
Features |
|
Deposit tenure |
|
Nomination |
Available |
Premature payment |
Allowed |
TDS |
As per rules |
- Tax-Saver Fixed Deposit
Union Tax Saver | |
Eligibility |
Resident individuals and HUF having PAN |
Type of deposit |
|
Quantum of investment |
|
Tenure |
The minimum period of investment is 5 years, and the maximum is 10 years. |
Form of deposit |
Deposit accepted as Deposit Reinvestment Certificate, Fixed Deposits, or under Monthly Income Scheme. |
Loans |
Available after the lock-in period of 5 years |
Interest payout |
Depends on the form of the deposit |
Nomination |
Allowed |
Premature payment |
Allowed after the lock-in period of 5 years |
TDS |
As applicable |
Benefits |
Get tax concessions under Sec 80C of IT Act |
Easy Tax Saver Scheme variant |
|
- Recurring Deposit
Union Monthly Plus | |
Product |
A unique Recurring Deposit scheme with the facility of Step-up or Step-down options. |
Features |
|
Step Up option |
|
Step Down option |
|
Premature closure |
Allowed |
Penalty |
|
Nomination |
Allowed |
Loan |
Up to 75% of the deposit amount @ 2% over the deposit rate |
TDS |
Applicable as per rules |
Cumulative Deposit Scheme | |
Target |
All sections of society, especially the salaried sector |
Eligibility |
All resident individuals and non-individuals |
Type of deposit |
Recurring Deposit |
Features |
|
TDS |
As applicable |
- Special Deposit Products
MACAD - Motor Accident Claims Annuity Deposit Account (Term Deposit) | |
Product |
|
Eligibility |
|
Mode of holding |
Single names |
Type of account |
Term Deposit account |
Quantum of deposit |
|
Tenure |
|
Payment of annuity |
Credit to the individuals MACT Savings Bank account only |
Conditions |
|
Nomination |
Allowed as per directions of the court |
Premature closure |
|
TDS |
As applicable |
Non-Callable Term Deposit Scheme | |
Quantum of deposit |
Minimum amount of 1 Crore |
Deposit types |
|
Deposit tenure |
61 days to a maximum of 3 years |
Auto-renewal |
Not allowed |
Rate of interest |
As decided by the bank |
Premature closure |
Not permitted |
Loans |
Permitted |
Gold Monetisation Scheme 2015 | |
Eligibility |
Resident Individuals and non-individuals |
Features |
Short Term Bank Deposit Scheme |
Specific branches |
Six designated branches only |
Deposit tenure |
Short term of 1 year to 3 years |
Quantum of deposit |
|
Redemption |
|
Premature redemption |
|
- Non-Resident Deposits
NRE Fixed Deposit | |
Eligibility |
NRI/PIO/OCI |
Currency |
Indian Rupees |
Type of account |
Term Deposit |
Deposit tenure |
1 year to 10 years |
Source of funding |
|
Joint account |
Allowed with residents with mandate Former/Survivor |
Nomination |
Allowed |
TDS |
Exempt from income tax |
Repatriation |
Principal and interest fully repatriable |
NRO Fixed Deposit Receipt | |
Eligibility |
NRI/OCI/PIO |
Currency |
Indian Rupees |
Deposit type |
Term Deposit |
Deposit tenure |
15 days to 10 years |
Source of funds |
|
Joint accounts |
Permitted with resident relatives with operating instructions Former or Survivor |
Nomination |
Allowed |
TDS |
|
Repatriation |
As per RBI and FEMA rules |
Union Smart Rupee Deposit Scheme | |
Eligibility |
NRI/PIO/OCI |
Purpose |
Maximise yield on Rupee deposits |
Tenure |
1 year |
Rate of interest |
As applicable to one-year FCNR (B) Deposit |
Conditions |
|
Foreign Currency Non-resident | |
Product |
Foreign Currency Fixed Deposit account |
Currencies |
USD, GBP. EUR, JPY, AUD, and CAD |
Eligibility |
NRI/PIO/OCI |
Deposit tenure |
1 year to 5 years |
Source of funds |
|
Repatriable |
Principal and Interest repatriable |
Joint holders |
Joint accounts with resident relatives allowed with operating instructions as Former or Survivor. |
Loans |
Available |
Union Smart Foreign Currency | |
Purpose |
Avail higher interest while safeguarding against exchange risk |
Eligibility |
NRI/PIO/OCI |
Quantum of deposit |
The minimum size is the equivalent of USD 10,000 |
Deposit tenure |
Fixed for 12 months |
Type of deposit |
NRE Term Deposit |
Benefits |
|
Conditions |
|
Resident Foreign Currency | |
Eligibility |
NRIs permanently returning to India |
Source of funds |
Money held in NRE/FCNR accounts |
Currency |
USD, GBP, EUR |
Deposit tenure |
6 months to 3 years |
Repatriable |
On regaining NRI status |
Documents Required for Opening UBI Fixed Deposits
Type of Customers | Applicable Documents |
Individuals - ID and Address Proof |
|
For Address Proof alone |
|
Non-resident Individual |
|
Proprietary Concern (any two of the documents listed here) For identity, address, and activity |
|
Hindu Undivided Family |
|
Partnership firms |
|
Companies/Corporations |
|
Trusts |
|
Local Bodies/Societies |
|
Unincorporated Association |
|
Process to Open UBI Fixed Deposits
Visit the nearest branch of UBI to open your Fixed Deposit. It is also possible to open FD online using internet banking facilities.
How do you open UBI Fixed Deposit Online?
Union Bank of India customers can open FD online using their internet banking credentials. Log in to the respective platform and follow the simple instructions available on the screen. Submit the necessary information such as type of deposit, tenure, and the amount. There is no need for any KYC verification. It is possible to open the FD instantly.
Maturity Value Calculator
Union Bank of India does not offer FD maturity value calculator on their website. However, it is possible to use such calculators available elsewhere to determine your FD maturity amount. Access any such calculator and provide information such as principal amount, deposit tenure, rate of interest, and interest payout options to get the maturity value.
Tax Deduction at Source on Fixed Deposit Interest
The interest income on resident and NRO deposit accounts is taxable as per IT Act. Banks deduct TDS at the following rates on interest payable on FDs in a financial year.
- If interest income exceeds 40,000 in a financial year on resident deposit accounts - TDS @ 10%.
- For senior citizens, the threshold amount is 50,000 in a fiscal
- NRO Accounts - No such concession is available. The entire interest is taxable @30.90% if the interest income is less than 10 Lakhs and @33.99% for interest income above 10 Lakhs.
- There is no income tax on interest earned on NRE and FCNR Fixed Deposits.
- Resident Indians can submit Form 15G (15H for senior citizens) along with PAN card to request the bank not to deduct TDS.
Premature Payment - UBI Fixed Deposits
Union Bank of India does not charge any penalty on early closure of Fixed Deposits. Customers get the applicable rate of interest for the period for which the deposit remained with the bank. No interest is payable if the deposits are held for less than the minimum tenure prescribed under the individual product.
UBI Fixed Deposits - Frequently Asked Questions
What are the interest payout options available on UBI FDs?
Union Bank of India offers different types of interest payout options.
- Monthly payout at discounted rates
- Quarterly payout at simple interest
- Quarterly compounding of interest and reinvested
- Payable on the maturity of the deposit
What is the minimum permissible tenure for which I can open FDR in UBI?
The minimum tenure for UBI FD is seven days. The minimum amount of deposit for the seven to 14 days tenure bracket is 5 Lakhs.
How much loan or overdraft is available on my FDR?
Generally, UBI offers loans or overdrafts up to 90% of the FD amount. This facility is not available on specific products like MACAD deposit and Tax-Saver FDs.
Is it possible to make multiple nominations on my FDs?
No, only one nominee is permitted in a single FD. However, there are facilities to cancel the existing nomination and add a new one.
How can I redeem my UBI FDR?
On maturity, you can walk into any UBI branch in the country and produce your original FDR for redemption.
Can NRI customers open joint accounts with residents?
RBI permits opening of joint accounts of NRIs with close resident relatives with the operating instructions as 'Former or Survivor.'
Can NRIs open accounts with other NRIs?
Yes, they can do so. NRIs residing in different countries can also open joint accounts.
Can an NRI open account with a Zero Balance?
Yes, NRIs have the facility of opening savings accounts with a Zero Balance. Subsequently, they can remit funds from abroad.
Is senior citizen benefit available for NRI accounts?
No, NRI senior citizens do not get the benefit of an additional 0.50% in the interest rate.
Can I open FD for more than ten years?
Generally, it is not permissible to open FD for more than ten years. However, the MACAD product allows for opening FDs for more than 120 months if the court/tribunal orders the same.