Interest Rates
4.00% – 7.10%
Time Period
7 days to 10 years
Min - Max Amount
100 - No upper limit
Compounding
Quarterly
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Expected Rate of Return
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Invested Amount
₹ 10,000
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City Union Bank Limited, a prominent private sector bank in India, traces its origins back to the early 20th century, embodying a legacy of trust, innovation, and customer-centric banking. Established on 31st October 1904 as 'The Kumbakonam Bank Limited' in the historic town of Kumbakonam, Tamil Nadu, the bank was founded by a group of visionary citizens including R. Santhanam Iyer, S. Krishna Iyer, V. Krishnaswami Iyengar, and T. S. Raghavachariar. From its humble beginnings with a single office in Kumbakonam, the bank expanded steadily. The first branch opened in Mannargudi in 1930, followed by others in Nagapattinam, Tiruvarur, and beyond.
Under the stewardship of leaders like Shri S. Mahalinga Iyer (first full-time Managing Director from 1929 to 1963) and later Shri O. R. Srinivasan (Chairman from 1969), the bank accelerated branch growth across Tamil Nadu and beyond. By the 1970s and 1980s, it had ventured into Karnataka and Andhra Pradesh, with the name simplifying to 'City Union Bank Limited' in 1987. The 1990s brought technological advancements, including computerisation in 1990 and core banking solutions via Tata Consultancy Services, alongside an Authorised Dealers Licence for foreign exchange dealings in 1990. The bank also diversified into insurance agency roles, partnering with LIC and others, and became a Depository Participant.
Tenure | Regular Rate (p.a.) | Senior Citizen Rate (p.a.) |
7 days to 14 days | 4.00% | 4.00% |
15 days to 45 days | 4.00% | 4.00% |
46 days to 90 days | 5.25% | 5.25% |
91 days to 180 days | 5.75% | 5.75% |
181 days to 270 days | 6.25% | 6.50% |
271 days to 364 days | 6.25% | 6.50% |
365 days | 6.75% | 7.00% |
366 days to 3 years | 6.65% | 6.90% |
Above 3 years up to 10 years | 6.25% | 6.50% |
Note: The data is as of September 2, 2025.
Tenure | Regular Rate (p.a.) (₹3 Cr to < ₹5 Cr) | Regular Rate (p.a.) (₹5 Cr and Above)* |
7 days to 14 days | 4.00% | 4.00% to 4.60% (slab-wise) |
15 days to 45 days | 4.75% | 4.75% |
46 days to 90 days | 5.25% | 5.25% to 5.35% (slab-wise) |
91 days to 180 days | 5.65% | 5.65% to 5.85% (slab-wise) |
181 days to 270 days | 6.25% | 6.25% to 6.35% (slab-wise) |
271 days to 364 days | 6.25% | 6.25% to 6.55% (slab-wise) |
365 days | 6.65% | 6.65% |
366 days to 400 days | 6.25% | 6.25% (up to ₹25 Cr) |
401 days up to 10 years | Not applicable | Not applicable |
*Slabs for ₹5 Cr and above: ₹5-10 Cr, ₹10-20 Cr, ₹20-25 Cr, ₹25-50 Cr, ₹50-100 Cr, ₹100-500 Cr. Rates increase marginally with higher slabs. Non-Callable (CUB Deposit PLUS) options offer slightly higher rates. Senior Citizen benefits not applicable for bulk deposits.
Note: The data is as of September 2, 2025.
City Union Bank Fixed Deposits (FDs) stand out for their blend of security, flexibility, and attractive returns, making them a preferred choice for conservative investors seeking stable income. A key feature is the ease of online opening, allowing customers to initiate deposits seamlessly via the bank's digital platform without branch visits, ensuring quick processing and confirmation. With tenures ranging from a mere 7 days to 10 years, they cater to both short-term liquidity needs and long-term wealth preservation. Interest payout options, monthly, quarterly, half-yearly, annual, or cumulative (with quarterly compounding), provide tailored cash flow management, ideal for retirees or businesses.
Senior citizens (aged 60 and above) enjoy an additional 0.25% to 0.50% interest rate from the first year, enhancing retirement planning. Low entry barriers, starting at ₹100 for individuals, democratise access, while bulk deposits from ₹3 crore accommodate high-net-worth clients. Pre-closure flexibility, auto-renewal at maturity, and loan/overdraft facilities against the deposit (up to 90% of principal) add liquidity without disrupting savings. All deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor, underscoring safety.
At the core is the Standard Fixed Deposit Scheme, which forms the backbone of CUB's deposit portfolio. This scheme allows depositors to earn simple interest paid out periodically, monthly, quarterly, half-yearly, or annually, making it suitable for those requiring regular income streams, such as pensioners or individuals managing household expenses. With a minimum deposit of ₹100 for individuals (in multiples), it accommodates small savers while supporting tenures from 7 days to 10 years. Interest rates, as per the latest schedule, range from 4.00% for short terms to 6.75% for one year, with senior citizens receiving an extra 0.25%.
Complementing this is the Cumulative Fixed Deposit Scheme, which appeals to long-term investors focused on capital appreciation. Here, interest is not disbursed periodically but compounded quarterly and added to the principal, resulting in exponential growth through the power of reinvestment. This option is particularly beneficial for education funds or retirement corpora, where the effective yield surpasses simple interest equivalents. The same tenure and minimum deposit rules apply, but the compounding mechanism can boost returns significantly, for instance, a ₹1 lakh deposit at 6.65% over three years yields more than ₹21,000 in interest under cumulative mode.
For tax-conscious savers, the CUB Income Tax Saver Deposit Scheme stands as a flagship product under Section 80C of the Income Tax Act, 1961. Divided into Tax Saver Silver (simple interest payout, minimum ₹100) and Tax Saver Gold (cumulative, minimum ₹1,000), it offers deductions up to ₹1.5 lakh annually. Locked for a mandatory 5-year tenure, it precludes premature withdrawal or loans, emphasising commitment to savings. Eligible for resident individuals, HUFs, and joint holders, the scheme's rate aligns with standard 5-year FDs at 6.25% for general category, with TDS applicable unless Form 15G/15H is submitted.
An innovative offering is the CUB Flexifix Deposit Scheme, which introduces partial liquidity without full closure penalties. Depositors can withdraw up to 25% of the principal after an initial lock-in (typically 6 months), ideal for emergency funds while retaining the bulk for higher yields. Rates mirror standard FDs but with a slight premium for the flexibility, starting at 6.25% for medium tenures. This scheme targets dynamic needs, such as entrepreneurs or families with unpredictable expenses, and supports online management.
City Union Bank's Fixed Deposit rates vary systematically by tenure, rewarding longer commitments with higher yields while maintaining accessibility for shorter periods. For deposits under ₹3 crore, short-term options (7-45 days) offer a modest 4.00% p.a. for all categories, ideal for parking surplus funds temporarily.
Mid-term tenures (46-180 days) see a rise to 5.25%-5.75%, suiting seasonal needs. The 181-364 days bracket peaks at 6.25% regular (6.50% seniors), balancing liquidity and returns.
One-year deposits hit 6.75% (7.00% seniors), a sweet spot for many. Beyond one year, rates stabilise at 6.65% for 366 days-3 years (6.90% seniors), dipping slightly to 6.25% (6.50% seniors) for 3-10 years, reflecting market dynamics. Bulk deposits (₹3 crore+) mirror this but with slab premiums, e.g., 6.65% base for one year, up to 6.80% non-callable. Super seniors (80+) gain an extra 0.10%. These tiered rates, effective from mid-2025, enable strategic tenure selection for optimised earnings, with quarterly reviews ensuring competitiveness.
| Tenure | Institution Name | Interest Rate (% p.a.) |
|---|---|---|
| 365 days | 6.75› |
 | 1 year to less than 2 years | 7.10› |
 | 450 days to 2 years | 7.00› |
 | 2 years - less than 3 years | 7.20› |
 | 999 days | 6.70› |
Note: The data is as of September 2, 2025
Once authenticated, choose the deposit type, tenure (7 days to 10 years), and amount (minimum ₹100 for individuals). Specify interest payout mode, monthly/quarterly for income needs or cumulative for growth, and opt for senior citizen benefits if eligible. Review prevailing rates using the embedded calculator to project maturity value, factoring in compounding or TDS. Upload requisite documents digitally (PAN, Aadhaar for identity/address proof) and fund the deposit via linked savings account, NEFT/RTGS, or UPI. The bank processes applications within hours, issuing a virtual deposit receipt and e-FD certificate.
For branch-based opening, locate a nearby outlet via the branch locator tool, carry physical documents, and complete the form with a relationship manager's assistance. Bulk investors (₹3 crore+) may require personalised discussions for slab-specific rates. Post-investment, monitor via the app for interest credits, maturity alerts, and renewal prompts. Auto-renewal ensures seamless extension at then-current rates. To enhance returns, ladder tenures across schemes or leverage loans against FD (up to 90% value at 1-2% above FD rate). This user-friendly ecosystem minimises paperwork, with 24/7 support via helpline 1800-425-1906. By integrating seamlessly with CUB's core banking, the process empowers informed, efficient investing, safeguarding capital while generating predictable yields in a secure, insured environment.
Eligibility for a City Union Bank FD account is inclusive, encompassing resident individuals (single or joint), minors (through guardians), Hindu Undivided Families (HUFs), MSMEs, partnership firms, companies, societies, trusts, and NRIs for NRE/NRO variants. Applicants must be at least 18 years for independent accounts, with no upper age limit, seniors (60+) qualify for enhanced rates. Basic KYC compliance is mandatory, including valid PAN and Aadhaar linkage. For tax saver schemes, residency under Section 80C applies. Bulk schemes require entity proofs like incorporation certificates. No credit checks are needed, as FDs are collateralised by the deposit itself.
Opening a City Union Bank FD requires standard KYC documents for seamless verification. For individuals: identity proofs such as PAN card, Passport, Voter's ID, Driving Licence, Aadhaar, or employer confirmation; address proofs including utility bills (electricity/telephone not older than two months), bank statements, ration card, or registered rent agreement. Photographs and PAN are essential for TDS. Joint accounts need documents for all holders. MSMEs submit business registration, GST certificate; corporates provide incorporation certificate, board resolution, and authorised signatory KYC. NRIs add passport and visa copies for NRE/NRO.
Interest earned on City Union Bank Fixed Deposits is taxable as 'Income from Other Sources' under the Income Tax Act, 1961, added to the depositor's total income and taxed at slab rates (up to 30% plus cess for high earners). The bank deducts Tax Deducted at Source (TDS) at 10% if annual interest exceeds ₹40,000 (₹50,000 for seniors), rising to 20% for non-PAN filers. Form 15G/15H submission exempts TDS for eligible low-income/senior depositors. For cumulative FDs, TDS applies on accrued interest at maturity or payout. Tax Saver FDs offer Section 80C deduction up to ₹1.5 lakh, reducing taxable income, but lock-in applies. Advance tax provisions may require quarterly payments on accrued interest. Depositors receive Form 16A for ITR claims, promoting transparency. In NRE FDs, interest is tax-exempt for NRIs; NRO attracts TDS. Consulting a tax advisor optimises liabilities, especially with indexation for long-term holdings, ensuring FDs remain efficient post-tax.
Premature closure of City Union Bank FDs is permitted after the minimum 7-day period, offering liquidity for unforeseen needs, though it incurs a penalty of 1% on the applicable interest rate. No interest is payable if closed within 7 days. For tenures over one year, interest is recalculated at the rate for the completed period minus penalty; shorter terms follow card rates. Tax Saver FDs prohibit early withdrawal. Alternatives like loans against FD avoid penalties, preserving returns. Apply online via net banking or at branches for swift processing.
