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

  • Resident individuals in single or joint names
  • Illiterate and blind persons
  • Minors, Purdanasheen ladies
  • Non-individuals like associations, trusts, societies, clubs, agencies, and institutions.

Quantum of deposit

  • Metro and Urban branches - The minimum investment is 10,000
  • Rural and Semi-urban branches - The minimum deposit amount is 5,000.
  • Senior Citizens - The minimum deposit allowed is 5,000

Tenure

  • The minimum period is 7 days, and the maximum is for 10 years
  • Deposits for a minimum of 7 days and a maximum of 179 days classify as short deposits.

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

  • Interest payable every month at the contracted rate
  • Interest paid on the discounted value
  • Interest credit to the savings/current account
  • Senior citizens get additional interest benefit @0.50% if a deposit is for a minimum period of 1 year.

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

  • Resident Individuals in single or joint names
  • Non-individuals permitted by RBI

Features

  • Quarterly compounding of interest and reinvesting it
  • Senior citizens get the benefit of an additional 0.50% if a deposit is for a minimum period of 1 year.

Deposit tenure

  • The minimum tenure is 6 months, and the maximum is for 120 months

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

  • In single or joint names
  • In case of joint names, tax concession is available to the first-named depositor.

Quantum of investment

  • The minimum investment is 5,000, and the maximum deposit is 1.50 Lakhs.
  • Deposit accepted in multiples of 1,000 above 5,000

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

  • Flexibility to invest in the Tax Saver Fixed Deposits in lump-sum, in monthly instalments, or when you have surplus funds.
  • Enables systematic tax planning by investing small amounts throughout the financial year.
  • Invest as many times as you want up to a cumulative maximum of 1.50 Lakhs per fiscal year.
  • Recurring Deposit
Union Monthly Plus

Product

A unique Recurring Deposit scheme with the facility of Step-up or Step-down options.

Features

  • Product available to individuals and non-in-individuals
  • Customer selects a core amount and deposits the same as an initial deposit
  • The minimum core is 100, and the maximum core investment is 1 Lakh
  • The minimum tenure is 6 months with the maximum being 60 months
  • Interest calculated on daily reducing balances

Step Up option

  • The depositor can vary the monthly instalment up to ten times the core amount subject to a maximum deposit of 1 Lakh.

Step Down option

  • On increasing the monthly instalment, the customer can reduce his/her deposit instalment, subject to the deposit of the minimum core amount.

Premature closure

Allowed

Penalty

  • No penalty for early closure
  • No penalty for delayed instalment

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

  • The minimum monthly instalment is 50
  • The deposit tenure is from 6 months to 120 months
  • No alteration of deposit amount once the depositor selects the same
  • Quarterly compounding and reinvestment of interest
  • Maturity amount payable one months after payment of last deposit instalment

TDS

As applicable

  • Special Deposit Products
MACAD - Motor Accident Claims Annuity Deposit Account (Term Deposit)

Product

  • Deposit of one-time lump-sum amount as directed by Motor Accidents Tribunal/Court.
  • The beneficiary receives the proceeds in EMIs comprising part of principal and interest.

Eligibility

  • Individuals
  • Minors should open an account through a guardian in a single name

Mode of holding

Single names

Type of account

Term Deposit account

Quantum of deposit

  • No maximum amount
  • The minimum amount should be such that the monthly annuity payment should be a minimum of 1,000.

Tenure

  • Usually, the period is between 36 and 120 months
  • If the period is less than 36 months, the bank opens a regular FD
  • The maximum tenure can be more than 120 months, as the court decides the tenure

Payment of annuity

Credit to the individuals MACT Savings Bank account only

Conditions

  • No receipts will be given to depositors
  • Issuance of passbook for MACAD
  • No loan allowed

Nomination

Allowed as per directions of the court

Premature closure

  • Allowed with the permission of the court
  • No penalty on early closure
  • In the case of death of the account holder, the nominee can seek pre-closure or continue with the annuity payments.

TDS

As applicable

Non-Callable Term Deposit Scheme

Quantum of deposit

Minimum amount of 1 Crore

Deposit types

  • Fixed Deposit
  • Short Term Deposit
  • Deposit Reinvestment Certificate

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

  • In the form of raw gold equivalent to 30 grams of gold of 995 purity
  • No maximum limit

Redemption

  • Principal and interest either in Indian Rupee for the value of gold prevailing at the time of redemption OR in gold.
  • The irrevocable option is given in writing at the time of deposit of gold
  • The fraction of maturity for which payment is not possible in gold will be made in INR.

Premature redemption

  • Lock-in period of one year
  • No interest payable if withdrawal is made during this period
  • After 1 year, the premature payment penalty is 0.25%
  • Early redemption in INR only
  • 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

  • Inward remittance from abroad
  • Transfer from NRE/FCNR A/c

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

  • Inward remittance from abroad
  • Depositing foreign currency cheque
  • Transfer from NRE/NRO/FCNR account of the customer
  • Surrender of foreign currency/TCs by the account holder in person

Joint accounts

Permitted with resident relatives with operating instructions Former or Survivor

Nomination

Allowed

TDS

  • Interest below 10 Lakhs - 30.90%
  • Interest above 10 Lakhs - 33.99%

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

  • Deposit under FCNR (B) Scheme alone
  • The minimum value of deposit is USD 10,000 or equivalent
  • Premature extension is not allowed
  • No early withdrawal
  • Maturity payment in INR
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

  • Remittance from abroad
  • Transfer from NRE/FCNR A/c

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

  • Higher returns as compared to FCNR deposit
  • Protection against exchange losses
  • Interest earned in India is tax-free
  • Fully repatriable

Conditions

  • No premature extension
  • No loan of overdraft
  • No early withdrawal
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

  • Aadhaar Card
  • PAN Card
  • One recent photograph

For Address Proof alone

  • Recent utility bill
  • Property tax receipt
  • Pension Payment Order
  • Letter of allotment of accommodation issued by any Government department, financial institutions, PSUs
  • Leave and licence agreement

Non-resident Individual

  • Copy of passport and residence visa
  • Recent photograph

Proprietary Concern (any two of the documents listed here)

For identity, address, and activity

  • Registration certificate
  • Shop & Establishment Act Certificate
  • GST Certificate
  • Importer Exporter Code
  • A licence issued by any professional body
  • Complete IT return
  • Utility bills
  • ID and Address proof of individuals authorised to operate the account
  • Recent photos

Hindu Undivided Family

  • Prescribed HUF letter signed by all major co-parceners
  • Karta Declaration form

Partnership firms

  • Registration Certificate
  • Partnership deed
  • PAN of the firm

Companies/Corporations

  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Association
  • PAN of the Company
  • List of directors
  • Board Resolution

Trusts

  • Registration Certificate
  • Trust Deed
  • PAN of the trust

Local Bodies/Societies

  • Resolution for opening the FD account
  • Documents listing persons authorised to act on behalf of the entity

Unincorporated Association

  • Resolution of the managing body
  • PAN of the association
  • POA granted to the authorised person to operate the account

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.

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