City Union Fixed Deposit Rate

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City Union Bank Fixed Deposit Rate

City Union Fixed Deposit Rate - FD Rate in India

A Fixed Deposit (FD) is a savings instrument that accrues a fixed amount of interest, which is payable after a fixed period of time. It carries simple interest payable monthly /quarterly/ half yearly or annually. An FD yields a higher rate of interest than a regular savings account.

Fixed Deposits are considered to be safe investment options and is one of the most popular investments in India as it offers reliable returns and is free from fluctuations and volatility.

Under a fixed deposit account, money can be deposited for a time period that ranges from 7 days to 10 years. The drawback to an FD account is that the money deposited cannot be withdrawn before the maturity date, except upon payment of a penalty.

The rate of interest paid for fixed deposits vary according to the principal amount, tenure and the issuing bank. Banks are free to set their own FD interest rate which in India can generally range from 3.5% - 8%, sometimes even as high as 9% depending on the tenure and amount amongst other factors.

One of the safest ways to invest idle money is to open an FD account and deposit the money. Booking an FD is a simple option, and also has the added advantage of a hassle-free documentation process. Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened.

Apart from banks, NBFCs and corporates too offer fixed deposits.

City Union Bank Deposit Rates

The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest. But a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future. City Union Bank Interest Rates typically range from 4%-8% per annum.

City Union Bank FD rates

Following is an overview of City Union Bank Term Deposit Rates and City Union Bank Short-Term Fixed Deposit Interest Rates.

City Union Bank Interest Rates on Fixed Deposits 2015 – 2016:

(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 City Union Bank directly.)

Domestic Term Deposit Rates for amount Less than Rs.1 Crore:

Tenure Interest Rate p.a
7 days to 90 days 6.75%
91 days to 180 days 7.25%
181 days to 364 days 7.60%
1 year 7.60%
Above 1 year & up to 5 years 7.25%
Above 5 years & up to 10 years 7.00%

NRE Term Deposit Rates:

Period Rate Of Interest % p.a
1 Year 7.60%
Above 1 Year & up to 5 years 7.25%
Above 5 Years & up to 10 Years 7.00%

City Union Bank FD Interest Rates for Senior Citizens

City Union Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates as applicable on a regular FD. As of now, the City Union Bank Senior Citizen FD rate of interest is 0.50% higher for all maturity periods. Following are the rates.

Tenure Rate of Interest p.a
7 days to 90 days 6.75%
91 days to 180 days 7.25%
181 days to 364 days 7.60%
1 year 8.00%
Above 1 year & up to 5 years 7.50%
Above 5 years & up to 10 years 7.25%

How to Calculate City Union Bank Fixed Deposit Interest

You can use online resources to help you identify how much interest you will earn on your principal amount. Using online FD calculators are easy and calculates the returns on your principal amount instantly. All you need to do is enter the amount to be deposited, number of years, and the rate of interest per annum – and the calculator will do the rest and present you with a breakup of the interest earned and the maturity amount. There are several online websites that allow you to instantly calculate the interest earned.

Using an online resource helps in determining how much you want to invest and helps identifying the final maturity amount. You can also calculate the interest earned and the maturity value on the principal amount using the following formula.

Calculate City Union Bank FD Rate

A = P x (1 + r/n)nt

I = A - P

Where

A = Maturity Value

P = Principal Amount

r = Rate of Interest

t = Number of Years

n = Compounded Interest Frequency

I = Interest Earned

City Union Bank FD Premature Withdrawal Penalty

If you face an emergency, say for instance, a medical crisis, the bank will allow you to withdraw the money from the deposit prematurely. The bank typically charges a nominal penalty which is communicated to you at the time of application of FD Deposit.

City Union Bank FD – FAQS

What is the period for a fixed deposit in City Union Bank?

The minimum period of Fixed Deposit is 15 Days and can go up to 10 years. However, the bank might accept deposits for a period exceeding 10 years up to a maximum of 20 years subject to terms and conditions.

What is the minimum amount required to open a fixed deposit with City Union?

The minimum amount for a fixed deposit is Rs.100. For deposit amounts over Rs.50000, having a PAN card is mandatory and the amount will be accepted as cheque only.

Who is eligible to open an FD with City Union Bank?

A fixed deposit account can be opened by the following:

  • An individual in his/her own name
  • Two persons or more in their joint names
  • Sole proprietorship companies, partnership firms, Private and Public Limited companies, HUF, associations, clubs, societies, trust, executors as administrators etc.

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