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City Union Bank Recurring Deposit Rate

Recurring Deposit (RD) is a type of personal account wherein you can deposit a fixed or a small amount on a monthly basis and earn interest income out of it. It is quite similar to Fixed Term Deposit and earns comparable interest. Recurring Deposit is convenient to those people who prefer to invest on a regular basis rather than depositing a bulk amount at one shot.

One of the major differences between a recurring deposit and fixed deposit is the amount invested. In recurring deposit, one can deposit a small amount on a regular basis whereas in fixed deposit, one bulk amount is invested for a lock-in period. With a recurring deposit account, one can save money as well as maintain a good liquidity ratio in the overall financial scene.

City Union Bank Recurring Deposit Schemes

City Union Bank Recurring Deposit Rate

One can make regular instalments into the recurring deposit account either through direct transfer of money every month or use the standing instruction facility to deduct the required amount from savings account every month. There are two types of recurring deposit schemes available with City Union Bank:

Recurring Deposits For Individuals

  • A minimum amount of Rs 100/- and its multiples needs to be invested on a monthly basis
  • There is a minimum period of deposit, 12 months and a maximum period of 120 months
  • TDS is deducted on the interest earnings
  • There is a pre-closure facility available
  • Loan facility is available

CUB APOORVA

  • One can earn dual benefits under this scheme – interest earnings as well as life cover
  • Any resident individual can open a single account and a joint account
  • The eligibility of age is 18 to 55 years
  • A minimum monthly deposit of Rs. 100/- and a maximum of Rs. 10,000/- is allowed
  • The minimum tenure for deposit is 3 years and a maximum of Rs. 10000
  • The bank collects Rs. 3.94 per thousand as annual premium
  • There is an insurance cover up to Rs. 5 lakhs till the end of the maturity period
  • Pre-closure option is available
  • Loan can be availed against this account
  • Nomination facility is also available with this account

Benefits of City Union Bank Recurring Deposit Schemes

  • One can make regular investment of small amounts of money over a one-time bulk amount as is the case with fixed deposit
  • People with steady income find RD to be more convenient as huge amount of money is not blocked for investment purpose and can make availability of finance easier to meet varying needs
  • Tenure period can be decided by depositor while opening a recurring deposit account
  • In comparison to a savings bank account, recurring deposit account offers a higher rate of interest
  • Recurring deposit is considered one of the safest and least risky form of investment
  • Recurring Deposit does not get affected by market fluctuations
  • Interest earned on recurring deposit is paid only at the end of the maturity period
  • It is possible to convert recurring deposit into fixed deposit account
  • Nomination facility is available with a recurring deposit account

Features of City Union Bank Recurring Deposit Accounts

  • One can start a recurring deposit account with the City Union Bank at Rs. 100/- and in multiples of Rs. 100/-
  • The minimum period of deposit is 12 months and a maximum of 120 months
  • TDS is applicable on interest earnings when it crosses Rs. 1000/- in a financial year
  • There is no interest applicable on premature withdrawal within a month of investment
  • The instalment amount cannot be changed
  • The bank has the right to close the account if there is a continuous default of 6 times
  • Preferential interest rate for senior citizens

City Union Bank Recurring Deposit Interest Rates

City Union Bank Recurring Deposit Rates

Recurring Deposit Interest rates are normally similar to that of Fixed Term Deposit interest rates. These interest rates are subject to change by the bank at their own discretion. It is recommended that you check the prevailing rates before opening a RD account.

For less than Rs. 1 Crore

PeriodGeneralSenior Citizens
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 - 999 days7.35%7.50%
1001 days to 5 years7.35%7.50%
Above 5 years and up to 10 years6.70%6.95
Tax Saver Schemes (both for General category and Senior Citizens) ROI p.a 7.35%

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

NRE Term Deposits (Senior citizen rate not applicable)
From 26-09-2018
PERIODRate of Interest % p.a
365 days - 999 days7.35%
1000 days7.60%
1001 days to 5 years7.35%
Above 5 Years and up to 10 Years6.70%

Who can open a Recurring Deposit account with City Union Bank?

In general, the following category of people can open recurring deposit account with City Union Bank:

  • Indian resident individuals or individuals jointly
  • HUF members
  • Private and public limited companies
  • Associations and Trusts

Advantages of Opening a Recurring Deposit account

  • A recurring deposit account is most suitable for salaried or steady income people who need not lock in a large amount money in one shot but can make small investments in instalments
  • A recurring deposit account can be opened with a basic minimum amount
  • One can earn a higher rate of interest than a savings account
  • The interest rate is similar to FD account
  • The tenure of the deposit is flexible as per the convenience of the depositor
  • Overdraft facility is usually available on this type of account
  • A lump sum amount is received at the end of the maturity period
  • Liquidity is maintained in a much better fashion as compared to other investment options

Disadvantages of Opening a Recurring Deposit account

  • There is penalty charge in case you withdraw from the recurring deposit account before the maturity period
  • The interest earned can be on the lower side if compared to other investment options like Mutual Funds where risk is high, so are the returns. However, your money remains safe and secure from volatile market fluctuations

City Union Bank Recurring Deposits: FAQs

1. What documents are accepted by the bank as ID proof to open a RD account?

The following documents are accepted by the bank as ID proof:

  • Passport
  • PAN card
  • Voter’s Identity Card
  • Driving license
  • Identity card /confirmation from the employer/other bank
  • ID card issued by recognised Educational Institutions
  • ID issued by Postal Authorities
  • Letter from a recognised public authority or public servant
  • Job card issued by NREGA duly signed by an officer of the State Government
  • Letter issued by the Unique Identification Authority of India containing details of name, address & Aadhar

2. What is the minimum amount requirement to open an RD account with City Union Bank?

With Rs. 100/- and its multiples, you can open a RD account with the City Union Bank

3. Which documents are accepted as address proof by the bank?

The bank accepts the following documents as Address proof:

  • Passport
  • PAN card
  • Voter’s Identity Card
  • Driving license
  • Identity card /confirmation from the employer/other bank
  • ID card issued by recognised Educational Institutions
  • ID issued by Postal Authorities
  • Letter from a recognised public authority or public
  • Job card issued by NREGA duly signed by an officer of the State Government
  • Letter issued by the Unique Identification Authority of India containing details of name, address & Aadhar number

4. Will my interest earnings get taxed?

Yes, TDS is applicable on the interest earnings on Recurring Deposit account

5. How can I apply for an RD account?

The easiest and the fastest way to apply for RD account is by visiting the website and applying online. Alternatively, you can drop into the nearest bank branch and physically submit the documents to open the account

6. I want to close the RD account, but it has only been one month. What are the charges?

In the case of premature closure within a month, no interest shall be paid and only your principal amount shall be returned.

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