City Union Bank Recurring Deposit Interest Rates
City Union Bank Recurring Deposit
A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.
The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.
An RD is one of the best way to invest small amounts regularly. It is often recommended for first-time investors, who might not understand the complexities and nuances of different investment instruments.
Advantages to opening an RD account:
- Interest Rate earned is generally equal to that of an FD
- Safe and secure form of investment and requires only a minimum monthly investment.
- Secure from fluctuations and volatility and you are assured of a fixed return
- Ideal for starters who want to save
- Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
- Can be opened with small minimum amount.
- Lump sum received at maturity, including the interest
- The rate of interest is higher as compared to an ordinary saving bank account
- Flexible tenures to suit the budget of the individual
- Loan / overdraft facility available with some banks.
City Union Recurring Deposit
An RD in City Union Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a City Union Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of City Union Bank RD Account
- Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
- Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
- Flexible tenure to suit the budget and financial goal.
- Attractive interest rates: Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
- Is a safe, low-risk form of investment.
- Quick liquidity options and access to your funds when you need it; nominal penal charges apply.
Types of Recurring Deposits Offered by City Union Bank:
Monthly Savings Deposit:
- The monthly installment should be made in multiples of Rs. 5
- Period of RD: 12, 15, 18, 21 months and so on and up to 120 months in multiples of 3 months.
- Maturity date will be calculated from the date of initial deposit.
- TDS on Interest is applicable
- Nomination facility available
- Premature Closure of RD Allowed
- Loan/ Overdraft against deposit is available
VIP Deposit Scheme:
- Tenure range: 12 months to 120 months.
- The depositor must decide the minimum amount of the installment at the time of opening of the account. this is called the Seed Amount.
- Deposit to be done in multiples of Rs. 10 over and above the seed amount
- Minimum Seed amount acceptable under the scheme is fixed at Rs.100 p.m.
This is an RD scheme linked with a life insurance scheme. Following are the details:
- Eligibility criteria: The applicant must be between 18 years to 55 years at the time of joining.
- Minimum monthly instalment of Rs.100 to a maximum of Rs.10000 p.m.
- Tenure: Minimum 3 years; maximum 5 years
- Premium: Rs.3.84 per thousand will be collected from the applicant
- Insurance cover is equal to the maturity value of the cumulative deposit account reduced by the amount already deposited together with accrued interest subject to a maximum of Rs. 5 lacs.
- Penalty charges apply in case of default in payment of instalment for more than 3 months.
City Union Recurring Deposit Interest Rates
City Union Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a City Union Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of City Union Bank RD interest rates including City Union Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in City Union, it is advisable to check with the bank directly.
City Union Bank recurring deposit interest rates 2015 – 2016
The current RD Interest rate ranges from 6% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and up to date interest rates as they fluctuate on a regular basis.
City Union Bank Senior Citizen RD Interest Rates
Senior citizens enjoy preferential rates, i.e., a certain percentage of interest more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.
City Union Bank NRE RD Interest Rates:
The period for which the deposit can run will be 12, 15, 18, 21 months and so on and up to 120 months in multiples of 3 months. Maturity date will be calculated from the date of initial deposit. Interest rates as below:
|Period||Rate of Interest (% p.a.)|
|Above 1 Year & up to 5 years||6.85%|
|Above 5 Years & up to 10 years||6.70%|
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with the bank directly.)
City Union Bank RD FAQs
Who is eligible to open a VIP Deposit Scheme?
Individuals in their names, singly or jointly with two or more persons, minors jointly with parent or guardian, minors above the age of 12 in his/her own name subject to a maximum balance of Rs.50000 in the account, NRIs etc., are eligible to pen an RD with City Union bank.
What is the minimum deposit period?
The minimum deposit tenure is 6 months and can go up to as high as 120 months.
How do I apply for a regular recurring deposit?
If you are a new customer, you can start with opening a savings account, which can be linked with an RD account.
Alternately, you can visit your nearest branch and submit the Deposit Account form.
What is the documentation required to open an RD account?
You will require the following documents:
- Filled-in application form
- Passport size photograph
- Proof of residence, PAN Card, ID Proof
- Any other KYC documents as required by the bank