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UCO Bank Recurring Deposit Rate

Recurring Deposit (RD) is an investment option to save your money in a secure manner. Regular instalments of small amounts can be made in systematic manner to earn a lump sum amount at the end of the tenure. This type of investment has low risk and interest can be earned during the chosen maturity period. It works quite similar to Fixed Term Deposits.

However, a huge difference between recurring deposits and fixed deposits is the amount of investment made. In recurring deposit, you can deposit very small amounts whereas in fixed deposits, a huge amount need to be deposited for a specific period. The interest rates remain similar to a fixed deposit.

UCO Sowbhagya Recurring Deposit Scheme

Uco Bank Recurring Deposit Rate

The recurring deposit scheme offered by UCO Bank is called UCO Sowbhagya Recurring Deposit Scheme. It offers all facilities of a normal recurring deposit account with the flexibility of varying monthly instalments for a higher yield at the end of the tenure. The interest rates offered are same as Fixed Term Deposits. The bank offers different tenure periods to suit your financial requirements. The bank also offers special privileges for senior citizens, staff and ex-bank employees.

Benefits of UCO Sowbhagya Recurring Deposit Scheme

  • People with regular income or salaries can opt for recurring deposit account
  • There is no need to make a bulk investment to save money. recurring deposit account allows for small instalments to be made on a monthly basis
  • There is no maximum amount that can be investment for the entire period
  • The bank offers loan facility on this account
  • It is protected against the volatile market fluctuations
  • UCO Bank offers competitive interest rates in the market
  • A standing instruction facility can be used to make the instalments on a regular basis

Features of UCO Sowbhagya Recurring Deposit Scheme

  • One can make a minimum deposit amount of Rs. 100/- in a month to start a recurring deposit account and then, thereafter in multiples of Rs. 100/-
  • The monthly deposit amount can be only 10 times of the initial investments upto a maximum of Rs. 1 lac per month
  • The minimum investment period is 12 months and maximum is 60 months
  • The interest rate on the investment is the same as fixed deposit
  • The bank offers special privileges to senior citizens, staff and ex-staff of the bank
  • One can use loan facility on this account upto 90% of the amount deposited. Interest charged by the bank is 2% above the deposit rates
  • TDS is applicable on the interest earned

UCO Bank Recurring Deposits Interest Rates

The UCO Bank recurring deposit Interest rates are similar to the Fixed Term Deposit rates. These interest rates are subject to revision by the bank at any time and hence, it is suggested to check the prevailing rates before making an investment.

The interest rates for recurring deposit account less than Rs. 1 crore:

UCO Bank Recurring Deposit Rates
S.NoTime PeriodInterest Rate w.e.f. 10/09/2018
17 – 14 days4.50%
215- 29days4.50%
330 – 45 days5%
446 – 60 days5.50%
561 – 90 days5.50%
691 – 120 days6%
7121 – 150 days6%
8151 – 180 days6%
9181 – 3654 days6.35%
101 year6.7%
11More than 1-year up to 2 years6.75%
12Above 2 years up to 3 years6.75%
13Above 3 years up to 5 years6.75%
145 years and above6.75%

UCO Bank Recurring Deposit interest rates for NRE Term Deposits less than Rs.1 crore

TenureInterest Rates p.a. for NRE
1 year6.70%
More than 1-year up to 2 years6.75%
More than 2 years up to 3 years6.75%
More than 3 years up to 5 years6.75%
5 years and above6.75%

Who can open a Recurring Deposit account with UCO Bank?

UCO Bank has laid out guidelines on the category of people who can open recurring deposit account:

  • Individuals in his/her name
  • Two or more individuals in their joint names who can be beneficiaries jointly or single basis or either-or survivor
  • Individuals on behalf of a minor represented by their Guardians
  • Clubs, societies, associations, educations institutions, trusts, firms, partnerships provided they are registered and joint companies
  • Individuals jointly with other individuals

Advantages of Opening a Recurring Deposit account

  • Recurring deposit accounts have better interest rates over savings account and is comparable to iced deposit accounts
  • Most banks have simple documentation in place to open recurring deposit account
  • This is a good option to invest money by salaried people or people with regular income who don’t want to lock in a huge amount in a single-go
  • This option offers more liquidity in your financial portfolio
  • Recurring deposit account is not affected by fluctuations in the market
  • One can start a recurring deposit account with a minimal account
  • A lump sum amount is earned at the end of the tenure
  • There are assured returns as the matured amount is fixed
  • One can avail loan facility/overdraft service on this account

Disadvantages of Opening a Recurring Deposit account

  • Most banks charge penalty fee for premature withdrawal from the recurring deposit account
  • In comparison to high risk investments wherein returns are also higher, recurring deposit account interest earnings is considered low

UCO Bank Recurring Deposit : FAQs

1. How can I open a recurring deposit account with UCO Bank?

It is quite simple and easy to open recurring deposit account with UCO Bank. The fastest way is to visit the bank website and apply online. The other option is to physically visit the nearest bank branch and submit your application with mandatory documents to the bank representative.

2. What are the interest rates offered on recurring deposit account?

UCO Bank offers one of the most competitive interest rates in the market. It ranges from 4.50% to 6.75% depending on the tenure of your investment.

3. What is the minimum investment tenure?

UCO Bank offers a minimum of 12 months and maximum of 60 months as the investment tenure for recurring deposit.

4. Can I take loan through this account?

Yes, UCO Bank offers loan facility of up to 90% of the amount deposited as loan. The interest charged is 2% more than the deposit rate.

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