Union Bank of India, a trusted name in banking, offers Fixed Deposit (FD) accounts with competitive interest rates. Whether you’re a general customer or a senior citizen, Union Bank provides attractive returns on your savings. For the general public, short-term deposits (7-14 days to 1 year) earn interest rates ranging from 3.50% to 6.80% per annum. Longer-term deposits (1 year to 10 years) yield rates between 6.50% and 6.80% per annum.
On the other hand, Senior citizens enjoy an additional advantage. Their FDs earn higher interest rates, ranging from 3.50% to 7.90% per annum.
The interest rates are subject to change, so always check the latest information on Union Bank of India’s official website.
Union Bank of India FD interest rates are the rates at which the bank offers returns on fixed deposit investments. These rates are fixed for the tenure of the deposit and vary based on the deposit amount, tenure, and customer category (general or senior citizens). The bank provides attractive interest rates to ensure good returns on your investment.
Union Bank of India offers different interest rates for various tenures. Below is a snapshot of the current FD interest rates for different tenures:
| Tenure | Interest Rates (per annum) |
| 7 days to 14 days | 3.00% |
| 15 days to 30 days | 3.00% |
| 31 days to 45 days | 3.25% |
| 46 days to 90 days | 3.75% |
| 91 days to 180 days | 4.50% |
| 181 days to less than 1 year | 5.00% |
| 1 year to less than 2 years | 6.25% |
| 2 years to less than 3 years | 6.00% |
| 3 years to less than 5 years | 6.00% |
| 5 years to less than 10 years | 6.00% |
Senior citizens receive an additional 0.50% interest rate on all tenures, making FDs an attractive investment option for them.
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The broader economic environment, particularly inflation rates, directly impacts Union Bank of India’s FD interest rates. Higher inflation may prompt the bank to offer higher rates to maintain real returns, whereas lower inflation might result in more conservative rates.
Union Bank evaluates its overall cost of funds, including the interest it pays on deposits and the cost of borrowing from other sources. To maintain profitability, the bank may adjust FD rates based on these internal financial dynamics.
Changes in the Reserve Bank of India’s repo rate, which influences the cost of borrowing for banks, are a significant determinant of FD rates. When the RBI raises the repo rate, Union Bank might increase FD rates to attract deposits needed for lending.
Union Bank’s liquidity needs, determined by its lending activities and cash flow requirements, also play a role in setting FD interest rates. During periods of high liquidity demand, the bank may offer more attractive FD rates to quickly raise the necessary funds.
The interest rates offered on FDs are influenced by the demand for loans and the rates the bank charges for these loans. If there is a strong demand for loans at higher rates, Union Bank may offer higher FD rates to secure more funds for lending.
Union Bank of India offers a variety of FD schemes to cater to different investment needs:
Union Bank of India allows individuals, joint account holders, minors (through guardians), NRIs, and even non-individual entities like companies and trusts to open FDs. For NRIs, the bank offers specific deposit schemes like NRE, NRO, and FCNR.
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The Union Bank FD Interest Rates Calculator is a useful tool that helps you estimate the maturity amount and interest earned on your fixed deposit. Here’s how to use it:
The calculator will then provide the maturity amount and total interest earned based on the inputs. This tool is useful for planning your investments and comparing different FD schemes.
Union Bank of India offers a diverse range of FD schemes, including regular FDs, tax-saving FDs, and specific schemes for senior citizens. This allows investors to choose a product that best aligns with their financial goals, whether it’s tax planning or regular income generation.
Senior citizens are eligible for an additional interest rate benefit on FDs, typically around 0.50% higher than standard rates. This feature provides elderly investors with a reliable income stream at an enhanced rate.
Union Bank allows you to borrow against your FD without breaking it, typically offering up to 90% of the FD value as a loan. This facility ensures liquidity in times of need while your FD continues to earn interest.
Union Bank offers flexible FD tenures ranging from 7 days to 10 years, catering to both short-term and long-term financial needs. This flexibility allows investors to align their FD investments with their financial planning horizon.
Being a government-owned bank, Union Bank of India provides a high level of safety and stability. FDs with Union Bank are considered a low-risk investment, ideal for conservative investors seeking assured returns.
Union Bank allows premature withdrawal of FDs, although a nominal penalty might apply. This feature provides financial flexibility in case of unexpected needs without losing the entire interest benefit.
The 5-year tax-saving FD offered by Union Bank qualifies for deductions under Section 80C of the Income Tax Act, providing a dual benefit of tax savings along with guaranteed returns.
Union Bank offers innovative FD products like ‘Union Super Gain,’ which combines the features of a fixed deposit and a savings account, providing high returns along with liquidity. This is ideal for those looking for flexibility without compromising on returns.
The current FD interest rates offered by Union Bank of India are competitive and vary based on the tenure and deposit amount. It is advisable to check the latest rates on the Union Bank of India website or visit the nearest branch for up-to-date information.
Union Bank of India offers competitive FD interest rates compared to other public sector banks like the State Bank of India (SBI), Bank of Baroda (BOB), and Punjab National Bank (PNB). Their rates vary based on the tenure and customer category (general or senior citizen).
Union Bank of India offers special fixed deposit schemes for Non-Resident Indians (NRIs) with competitive interest rates. These schemes include NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) deposits.
Union Bank of India FD interest rates are as per the market standards and offer a safe investment avenue with guaranteed returns. By understanding the various FD schemes, and current interest rates, and utilizing tools like the FD calculator, investors can make decisions that are profitable to maximize returns.
So, what are your investment plans? Would you take the benefit of Union Bank FD schemes at a minimum deposit amount of ₹1,000?
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Union Bank of India FD interest rates range from 3.00% to 6.25% for different tenures.
Senior citizens receive an additional 0.50% interest rate on their fixed deposits.
Factors include RBI monetary policy, inflation, economic conditions, demand for credit, and the bank’s liquidity needs.
Union Bank of India offers Regular FDs, Senior Citizen FDs, Union Bank Tax Saver Deposit, Union Bank Monthly Income Scheme, Union Bank Quarterly Income Scheme, Union Bank Reinvestment Plan, and Union Bank Flexi Fixed Deposit Scheme.
Enter the deposit amount, select the tenure, input the interest rate, and choose the compounding frequency to calculate the maturity amount and interest earned.
You can open an FD by visiting a Union Bank branch or through their online net banking portal or mobile app.
Benefits include guaranteed returns, safety, flexible tenures, higher interest rates for senior citizens, loans against FD, and easy liquidity.
Union Bank of India offers Tax Saver FDs with tax benefits under Section 80C of the Income Tax Act.
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