Union Bank of India Recurring Deposit Interest Rates
Union Bank of India 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 often recommended for starters in order to enable them to save the minimum fixed amount of money monthly. It is an ideal start for those who want to save money for specific expenses.
Advantages to opening an RD account:
There are several advantages to opening an RD account. Following is a brief overview:
- Interest Rate earned is generally equal to that of an FD
- Safe and secure form of investment
- Secure from fluctuations and volatility
- 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.
Union Bank Recurring Deposit
An RD in Union Bank of India 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 Union Bank of India recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.
Key Features of Union Bank of India 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.
- Encourages small investors to save in easy monthly installments over a fixed period of time and earn interest income.
- 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 – you can choose tenures which can range from a few months to several years depending on your 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.
- Quick liquidity options and access to your funds when you need it.
Types of Recurring Deposits Offered by Union Bank of India:
This scheme is mainly aimed at lower / lower middle / middle / upper middle and salaried sector. Following is an overview:
- Minimum monthly installment for Union Bank of India RD account: Rs. 50 onwards
- Period of RD: 6 months to 120 months in multiple of 1 month
- The number of installments once selected, cannot be altered
- Interest is compounded every quarter
- Preferential interest rate for senior citizens
- TDS on Interest is applicable
- The maturity amount will be paid one month after the deposit of the last installment
- Pass book provided
Union Monthly Plus:
- The depositor must select the "Core Amount", at the time of opening the account and deposit the same.
- The Scheme offers flexibility of depositing monthly installment amount, by way of Step Up & Step Down options, i.e., increase (step up) the monthly installment amount up to 10 times the core amount during any month, or, reduce the same (step down), in any subsequent month/s, but the same should not be less than the core amount.
- Minimum Core Amount is Rs.100 & Maximum Rs.1,00,000
- Tenure: 6 month to 60 months, in multiple of 1 month
- Interest will be calculated on daily product basis.
- Premature closure is allowed
- No penalty will be charged in case of premature closure
- No penalty will be levied on delayed installment
- Nomination facility is available
- Loan facility is permitted up to 75 % of the deposit amount
Union Bank Recurring Deposit Interest Rates
Union Bank of India RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Union Bank of India Recurring Deposit by investing in any of its RD schemes. Following is an overview of Union Bank of India RD interest rates including Union Bank of India Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Union Bank, it is advisable to check with the bank directly.
Union Bank of India 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.
Union Bank of India Senior Citizen RD Interest Rates
Senior citizens enjoy preferential rates, i.e., 0.50% 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.
Union Bank of India RD FAQs
What is the eligibility criteria to open an RD account with Union Bank?
Any Resident Individual singly or jointly with others, Illiterate Persons, visually impaired persons, Purdanasheen Ladies, Minors, Associations, Clubs, Societies, Trusts, Institutions/Agencies specifically permitted by the RBI to open an RD in single/joint name/s, etc., are eligible to apply.
What is the minimum and maximum amount required to open an RD with Union Bank of India?
The minimum monthly installment for a regular recurring deposit with Union Bank of India is Rs. 50.
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?
You can visit your nearest branch and submit the Deposit Account form. If you don’t have a Union bank savings account, you can open one online and have it linked with your RD.
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