Union Bank of India Fixed Deposit Rate
Union Bank of India Fixed Deposit Rate - FD Rate in India
A Fixed Deposit (FD) is one of the most popular savings instruments among the general population in India. It is considered to be a safe and reliable form of investment which provides a higher rate of interest as compared to a regular savings account. Rewards from an FD is low-risk and free from volatility and market risks. Although the rewards are proportionately low when compared to investing in the stock market, for example, it is free from fluctuation and offers a guaranteed return at the end of the maturity period.
Money is deposited in an FD account for a period that generally ranges from 7 days to 10 years. The catch is that the money cannot be withdrawn before maturity. 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.
The bank allows premature withdrawal in certain cases, but you would be required to pay a penal fee. Banks are free to set their own FD interest rate which in India can generally range from 3.5% - 8%, depending on the tenure and principal amount and other important factors.
If you have idle money that you wish to invest, booking an FD account is the simplest way to go. Investing in an FD account gives you an attractive rate of interest depending on the tenure and amount and is a simple process.
Apart from banks, NBFCs and corporates too offer fixed deposits.
Union Bank of India Bank Deposit Rates
The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. Union Bank of India Bank Interest Rates typically ranges from 4%-8% per annum.
Union Bank of India Bank FD rates
Following is an overview of Union Bank of India Term Deposit Rates and Union Bank of India Short-Term Fixed Deposit Interest Rates.
Union Bank of India 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 Union Bank of India directly.)
|Maturity Period||Interest Rate < 1 Crore|
|7 days – 14 days||5.00%|
|15 days – 30 days||5.25%|
|31 days – 45 days||5.25%|
|46 days – 90 days||6.25%|
|91 days - 120 days||6.75%|
|121 days to - 179 days||6.75%|
|181 day to < 1 Year||7.25%|
|>1 Year - 3 Year||7.35%|
|>3 years - 5 Year||7.40%|
|>5 years - 10 Year||7.25%|
Union Bank of India Bank FD Interest Rates for Senior Citizens
Union Bank of India Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates on a regular FD. As of now Union Bank of India Bank Senior Citizen FD Rate of interest is 0.50% higher as applicable on FD to normal citizens. This additional rate component is applicable to any person who has completed the age of 60 years on domestic term deposits of one year and above. A senior citizen is also eligible to open a joint account with someone who is under the age of 60 years. In such cases the name of the senior citizen is to be given as the first name in the FD application.
How to Calculate Union Bank of India Bank Fixed Deposit Interest
You can use the Union Bank of India Bank FD Calculator to help you identify how much interest you will earn on your principal amount. All you need to do is enter the deposit amount, tenure (in months), rate of interest and the kind of fixed deposit scheme you wish to apply for – and the calculator will do the number crunching and present you with a breakup of the interest earned and the maturity amount. Using a calculator provides you with instant, error-free and accurate results.
Alternatively, there are several online sites that allow you to instantly calculate the interest earned on an FD. You can rely on such online resources to calculate the interest accrued on your Union Bank of India Bank FD. You can enter as many variations as you want, to help you determine how much you want to invest and the interest earned on the principal amount deposited.
You can also calculate the interest earned and the maturity value on the principal amount using the following formula.
Calculate Union Bank of India FD Rate
A = P x (1 + r/n)nt
I = A - P
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Years
n = Compounded Interest Frequency
I = Interest Earned
Union Bank of India Bank FD Premature Withdrawal Penalty
Breaking a fixed deposit might come in handy for an emergency like a medical crisis. In such cases the bank allows partial or complete withdrawal of the deposit amount before completion of its maturity tenure. The bank typically charges a penalty which is communicated to you at the time of application of FD Deposit.
Following are the penalty details:
For Term Deposit of below Rs. 1 crore – The bank charges no penalty for premature closure.
For Term Deposit of Rs. 1 crore and above – The bank shall levy a penalty of 1% on interest rate applicable for the period the deposit has remained with the Bank.
Union Bank of India Bank FD – FAQS
Who is eligible to open an FD account with Union Bank of India?
The following entities are eligible to open an FD account:
Any Resident Individual – individually, or jointly with two or more people. Also eligible to open an FD account are Minors, Associations, Clubs, Societies, Partnership Firms, Trusts, Institutions/Agencies specifically permitted by the RBI eligible to open a ""Fixed Deposit Receipt" Account" in single/joint name/s.
What is the minimum amount required to open an FD with Union Bank?
A minimum of Rs. 10,000 is required for FDs in Metro and Urban Branches and Rs. 5,000 in Rural and Semi urban branches.
For senior citizens, the minimum amount is Rs. 5000.
What is the minimum and maximum period for a fixed deposit in Union Bank of India?
The minimum period is 7 days and the maximum is 10 years.
What is the documentation required for individuals to open an FD account in Union Bank of India?
The documentation for opening an FD account in India is fairly simple. You would be required to submit a filled in Application Form with a photograph along with supporting documents for Identity proof, Address proof, Signature proof and Age proof (for senior citizens).