A Simple Guide to Union Bank Fixed Deposit Interest Rates

Updated on: 4 Dec 2024

Union Bank is one of the leading government banks in India and offers a variety of services for customers, including the ability to book fixed deposits. Union Bank FD rates are assorted based on your investment tenure. Usually, you can get higher interest on a longer investment.

Knowing the rate of interest in Union Bank can help you compare the best FD options that align with your investment goal. Read on to know the Union Bank FD rates, benefits and other details.

Advantages of a Union Bank Fixed Deposit

Besides comparing interest rates, you should also look for other facilities offered by your FD issuer. Here are all the benefits you can leverage from a Union Bank fixed deposit account:

Nominal Deposit Amount

You can start your FD with only ₹1,000 and there is no upper limit. This makes it easier for you to start investing without waiting to save up a significant corpus.

Loan and Nomination Facility

In addition to the lucrative rate of interest in Union Bank for FDs, you can also pledge your FD as collateral to arrange for funds during an emergency. You can also nominate a beneficiary to redeem the FD instead in case of the account holder’s untimely demise.

Auto-Renewal System

With this option, your funds are automatically reinvested after maturity. This only applies if there is no set instruction for maturity amount. In this way, you don’t have to worry about the maturity date and you can continue earning returns.

Also Read : Fixed Deposit Auto Renewal

Union Bank FD Rates for Senior Citizens

Like most issuers, Union Bank fixed deposit interest rates for seniors and super senior citizens are higher.

For depositors over 60 years at the time of booking the deposit, an extra 0.50% interest rate applies on deposits up to ₹5 crores
For depositors over 80 years of age (super senior citizens), Union Bank offers a 0.75% interest rate hike

Latest Union Bank FD Interest Rate

Here’s a list of Union Bank FD rates you can get based on the tenure as both a regular and senior citizen for deposits under ₹3 crores. For interest rates over ₹3 crores, you can contact your nearest bank branch.

Investment Tenure	Fixed Deposit Rate for Regular Citizens (p.a.)	Fixed Deposit Rate for Senior Citizens (p.a.)	Fixed Deposit Rate for Super Senior Citizens (p.a.)
7 up to 14 Days	3.50%	4.00%	4.25%
15 up to 30 Days	3.50%	4.00%	4.25%
31 up to 45 Days	3.50%	4.00%	4.25%
46 up to 90 Days	4.50%	5.00%	5.25%
91 up to 120 Days	4.80%	5.30%	5.55%
121 up to 180 Days	5.00%	5.50%	5.75%
181 up to 332 days	6.35%	6.85%	7.10%
333 days	7.00%	7.50%	7.75%
334 days up to 1 year	6.35%	6.85%	7.10%
1 year	6.80%	7.30%	7.55%
1 year up to 398 Days	6.80%	7.30%	7.55%
399 Days	7.00%	7.50%	7.75%
400 up to 455 days	6.60%	7.10%	7.35%
456 days	7.30%	7.80%	8.05%
457 days up to 2 years	6.60%	7.10%	7.35%
2 years up to 996 days	6.60%	7.10%	7.35%
997 days	6.40%	6.90%	7.15%
More than 998 days to less than 3 Years	6.60%	7.10%	7.35%
3 Years	6.70%	7.20%	7.45%
More than 3 Years to 5 years	6.50%	7.00%	7.25%
More than 5 Years to 10 Years	6.50%	7.00%	7.25%

Disclaimer: Interest rates are subject to change. Please check the latest rates before you invest.

Eligibility For Union Bank Fixed Deposit

To benefit from Union Bank’s fixed deposit interest rates, you must meet the criteria of eligibility. The following may book an FD:

Indian residents
Institutions or agencies
Associations
Societies
Clubs and Trusts
Two or more adults for joint accounts
Minor with an adult co-account holder

Premature Withdrawal

Withdrawing funds before maturity incurs a penalty of up to 1% reduction in interest rate.

Say you invest for 1 year at a fixed deposit interest of 6.80%. If you withdraw your amount before your tenure ends, the applied interest will be 5.80%.

Now that you have clarity about Union Bank FD rates, you can choose the ideal tenure and open your FD account online or offline. In case you are worried about a lengthy lock-in period, opt for a shorter tenure. Union Bank has made it really easy for you to start your investment with a low minimum amount. You can use an FD calculator to help you make an informed discussion by forecasting your returns in advance. Be sure to take your tax liability into account, as it will affect your actual gains.

FAQs on Union Bank of India FD Interest Rates

What is the highest Union Bank of India FD interest rate?

The highest rate of Interest in Union Bank is 7.80% for senior citizens if invested for special tenure of 456 days. If a general citizen applies for an FD for a similar account, a rate of 7.30% applies.