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City Union Bank Fixed Deposit Rate

Fixed deposits are popular investment avenues, it is also the most sought-after avenue by investors. A single individual can hold multiple deposit account with same or different banks, the term deposits would vary typically based on term and interest rates.

Investment mandate by RBI states that a fixed deposit account can be opened with a minimum of Rs. 100 and there is no maximum limit on the amount that can be invested. The tenure can range from 7 days to 10 years, if the investor is a minor then the tenure can be increased to 15 yrs or 20 yrs on a case to case basis. The extended term is usually done keeping in mind the best interest of the investor. Most banks fine-tune the mandate such that the solutions or products offered suit the set of clients that they cater to.

City Union Bank offers customized products which suit their clients. They have a prominent presence in South of India, particularly Tamil Nadu. They cater to a huge clientele comprising rural and semi-urban populace. Their products are designed to best suit their needs. The bank has a long standing market hold in the interior and semi-urban regions of Tamil Nadu. The amount collected in the form of deposits are circulated as loans and advances among individual and corporate clients as applicable.

Features of City Union Bank Fixed Deposit Schemes

City Union Bank Fixed Deposit Rate

City Union Bank offers competitive interest rates and flexible tenures. The minimum amount with which an account can be opened is Rs. 100. For deposit amounts over Rs. 50,000, PAN submission is mandatory, and the deposit amount is accepted through cheque only. Under the term deposit account offered by City Union Bank, the investor tends to earn higher interest on the same money parked as compared to any savings deposit for the same period. The tenure for which one can open the deposit account ranges between 7 days to 10 years. The only drawback of fixed deposit account is that the money deposited cannot be withdrawn prior to the maturity date, except on the payment of penalty.

City Union Bank offers term deposit accounts with easy documentation. If an existing customer wants to open term deposit account, then the proofs of the existing account can be used, and the account is opened without any hassle. If a new customer intends to open term deposit account, then the regular proofs that need to be submitted include – address proof, identity proof, age proof (incase of senior citizen) and income proof.

Types of Fixed Deposit Schemes Available with City Union Bank

City Union Bank offers different types of deposit schemes catering to a variety of customers. The fixed deposits can be categorized as –

  • Fixed Deposit –fixed deposit which offers the standard features
  • Flexifix Deposits – Benefit of fixed deposit and flexibility of withdrawal blended in this scheme
  • Tax Saver Deposit – Any fixed deposit with lock-in of 5 years will qualify for tax savings under section 80C

Fixed Deposit

The key features of the fixed deposit offered by City Union Bank are –

  • Minimum amount of deposit - Rs.100/- and multiples thereof
  • Open your deposits online
  • Bulk Deposit of Rs. 1.00 Crore and above are accepted
  • Minimum period (presently) - 7 days, Maximum period - 10 years
  • Simple interest payable on monthly / quarterly / half yearly / annual basis
  • In case of Cumulative Deposits, interest shall be calculated and added to the principal at the end of every quarter
  • For senior citizens (60 Years +) additional interest rate applicable from 1st year
  • Pre-closure and Auto renewal options available
  • Loan / OD option available
  • TDS at prevalent Income tax rate is deducted

Flexifix Fixed Deposit

Key features of these deposits are as mentioned below -

  • Resident individual-single and joint accounts
  • Minimum amount of deposits - Rs.10000/- and multiples of Rs. 5000/-
  • Minimum period (presently) - 30 days Maximum period - 5 years
  • Amount can be withdrawn in units of Rs.5000/- each with interest on pro rata basis, continue to earn interest on balance units
  • No loan facility offered
  • Overdraft facility is available
  • Simple interest payable on monthly / quarterly / half yearly / annual basis
  • For senior citizens (60 Years +) additional interest rate applicable from 1st year
  • Auto renewal option available
  • TDS at prevalent Income tax rate is deducted if Form 15G / 15H not submitted
  • Nomination facility available

Tax Saver Deposit –

  • Key features of Tax saver deposits are -
  • Resident individual-single and joint accounts and also HUF
  • Save Tax under Sec 80C of the Income Tax Act
  • Tax Saver Silver - Accept deposits from Rs. 100/- ; Tax Saver Gold - Accept deposits from Rs. 1000/-
  • Maximum not exceeding Rs. 1,50,000/- for a financial year in both the schemes
  • Tenor - 5 years (lock in)
  • Loan facility is not available
  • Pre-closure is not available
  • In case of Tax Saver Silver Deposit simple interest is paid monthly / quarterly
  • In case of Tax Saver Gold Deposit cumulative interest is paid on maturity
  • TDS at prevalent Income tax rate is deducted if Form 15G / 15H is not submitted
  • Nomination facility is available
  • Interest Rate on City Union Bank Fixed Deposit

    The interest rate applicable for term deposits are –

    Domestic Term Deposits (Including MSD) from 09.01.2019

    PeriodRate of Interest % p.a
    GeneralSenior Citizens
    Less than Rs.1 Crore
    7 days to 90 days6.25%6.25%
    91 days to 180 days6.75%6.75%
    181 days to 364 days7.00%7.00%
    365 days - 499 days7.35%7.50%
    501 days to 5 years7.35%7.50%
    Above 5 years and upto 10 years6.70%6.95%
    Tax Saver Schemes (both for General category and Senior Citizens) ROI p.a  7.50%
    Savings A/C: Rate of interest will be 4.00% P.a

    For NRO deposits, the above rates under General category will alone be applicable i.e., senior citizen rate is not applicable.

    Terms :  Senior citizens: Age - Completed age of 60 years.

    PERIODRate of Interest % p.a
    365 days - 499 days7.35%
    501 days  to 5 years7.35%
    Above 5 Years and upto 10 Years6.70%
    NRE Savings A/C: From 03-05-2011  rate of interest will be 4.00% P.a

    CUB 500 days

    From 09-01-2019

    PeriodRate Of Interest % p.a
    GeneralSenior Citizens
    CUB 500 days Domestic7.75%8.00%
    CUB 500 days NRE/NRO7.75%7.75%

    * Penal interest of 1 % for premature closure of Deposits

    City Union Bank FD – FAQS

    1. Who is eligible to open a term deposit account with City Union Bank?

    Resident Indians, private or public limited company, Hindu Undivided Family (HUF), trust and partnership firm can open term deposit account with City Union Bank. Non – resident Indians are also allowed to open term deposit account with City Union Bank.

    2. What is the minimum and maximum tenure allowed on fixed deposits?

    The tenure can range between 7 days and 10 years.

    3. What is the minimum amount allowed for opening a fixed deposit account?

    Fixed deposit account can be opened with a minimum of Rs. 100 and can be increased in multiples of Rs. 100.

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