Union Bank FD Interest Rates

About Union Bank

Union Bank of India is one of the country’s leading public sector banks, with its corporate headquarters located in Nariman Point, Mumbai. Established on November 11, 1919, the bank is a listed entity with the Government of India holding a 74.76 percent stake in its paid-up capital. On April 1, 2020, Andhra Bank and Corporation Bank were merged into Union Bank, significantly expanding its reach.

As of March 31, 2025, the bank has a total business of ₹22.92 lakh crore, with over 8,600 domestic branches, 8,900 ATMs, more than 23,000 Business Correspondent points, and a workforce of over 73,500 employees. Union Bank has a strong international presence with branches in Dubai and Sydney, a subsidiary in London, and a joint venture in Malaysia.

Union Bank Fixed Deposits offer a secure investment option with competitive interest rates. Customers can open an FD account with a minimum deposit amount and earn assured returns for a fixed tenure. The bank also provides flexible tenure options, nomination facility, and easy renewal services.

Union Bank FD Rates 2025 (Deposits Less Than ₹3 Crores)

Note: The data is as of July 7, 2025

Features and Benefits of Union Bank Fixed Deposit

• Tenure ranges from 7 days to 120 months
• Minimum deposit amount is ₹1,000
• No upper limit on the deposit amount
• Offers attractive interest rates
• Loan facility available against the FD
• Nomination facility is available
• Premature withdrawal is allowed as per the applicable terms and conditions

Types of Union Bank FD Schemes

Union Bank of India Fixed Deposit Receipt

• Offers a hassle-free, long-term investment option with attractive returns
• Tenure ranges from a minimum of 6 months to a maximum of 120 months
• Minimum deposit amount is ₹1,000 with no upper limit
• Loan and nomination facilities are available
• Premature closure is permitted as per applicable terms

Union Bank of India Monthly Income Scheme

• Provides guaranteed monthly income through systematic investments
• Tenure ranges from 6 months to 120 months
• Minimum deposit starts at ₹1,000, in multiples of ₹100; no upper limit
• Loan and nomination facilities are available
• Premature closure is allowed as per applicable terms

Deposit Re-investment Certificate (DRIC)

• Interest is compounded quarterly and paid at maturity along with the principal
• Tenure ranges from 6 months to 120 months
• Minimum deposit amount is ₹1,000 with no upper limit
• Automatic renewal facility is available
• Premature closure is permitted as per applicable terms

Short Deposit Receipt (SDR)

• Offers an easy short-term investment option with attractive returns
• Tenure ranges from 7 days to 179 days
• Minimum deposit amount is ₹1,000 with no upper limit
• Loan and nomination facilities are available
• Premature closure is allowed as per terms

Union Tax Saver Fixed Deposit

• Offers tax benefits under Section 80C of the Income Tax Act
• Available in FDR, MIS, or DRIC formats as per customer preference
• Minimum deposit amount is ₹1,000 in multiples of ₹1,000; maximum ₹1,50,000 per financial year
• Nomination facility is available
• Premature closure is permitted only in case of the primary depositor’s death

Easy Tax Saver Deposit Scheme

• Allows flexible tax-saving investments through monthly instalments, lump sum, or surplus funds
• Offers guaranteed, risk-free returns with IT benefits under Section 80C
• Ideal for systematic tax planning across the financial year
• Nomination facility is available for added security
• Passbook is provided for easy tracking of deposits

Cumulative Deposit Scheme

• Offers quarterly compounded interest with attractive returns
• Tenure ranges from 6 months to 120 months
• Monthly installments start from ₹50 with no upper limit
• No penalty for delayed or missed monthly installments
• Passbook is issued, and premature closure is allowed without penalty

Term-wise Union Bank Fixed Deposit Rates

Short-Term Fixed Deposits

These FDs range between 7 days to less than a year, offering interest rates from 3.40% to 6.15% for regular customers and 3.90% to 6.65% for senior citizens. This type of FD can be suitable for short-term savings and quick liquidity.

Medium-Term Fixed Deposits

These FDs range from 1 year to 5 years, with interest rates between 6.60% to 6.40% for regular customers and 7.10% to 6.90% for senior citizens. This can be a suitable option for planned expenses over the medium term.

Long-Term Fixed Deposits

These FDs range from 5 years to 10 years, offering 6.40% for regular customers and up to 6.90% for senior citizens. This can be suitable for long-term wealth creation with stable and assured returns.

How to Invest in a Union Bank Fixed Deposit?

Through Internet Banking

• Log in to your Union Bank of India NetBanking account
• Go to the main menu and select ‘Fixed Deposit’
• Enter the required details, including nominee and maturity instructions
• Click ‘Submit’ to complete the process. A confirmation message will appear once the FD is successfully booked

Through Mobile Banking App

• Download and log in to the Union Bank of India mobile app
• Tap on the ‘Fixed Deposit’ section
• Fill in the necessary information along with nominee and maturity preferences
• Click ‘Submit’ to complete the booking. You’ll receive a confirmation upon successful creation

Through Offline Branch Visit

• Visit your nearest Union Bank of India branch
• Fill out the FD application form and provide the required documents
• Submit the deposit amount at the counter
• Once processed, the bank will issue a Fixed Deposit receipt

Eligibility for Opening an Union Bank FD Account

• Resident individuals, either singly or jointly
• Minors under the supervision of a guardian
• Members of Hindu Undivided Families (HUFs)
• Registered societies, clubs, and associations
• Institutions and agencies
• Non-Resident Indians (NRIs)
• Public and private limited companies

Note: Tax-saving fixed deposits under Section 80C are only available to individuals or joint account holders. Corporates and institutions are not eligible to invest in these schemes.

Documents Required to Open Union Bank FD Account

Proof of Identity (any one of the following)

• PAN Card
• Passport
• Aadhaar Card
• Driving Licence
• Voter ID
• Ration Card with photograph
• Senior citizen ID (if applicable)

Proof of Address (any one of the following)

• Latest electricity bill
• Telephone bill
• Aadhaar Card
• Bank statement with cheque
• Certificate issued by the Post Office

Tax on Union Bank Fixed Deposit

Investments in Union Bank’s Tax Saver FD qualify for a tax deduction of up to ₹1,50,000 per financial year under Section 80C of the Income Tax Act. Other FD types do not provide this benefit.

The interest earned on any Union Bank FD is taxable as per the investor’s applicable income tax slab. Additionally, Tax Deducted at Source (TDS) is applied at 10% if total interest income exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).

If PAN details are not provided, the TDS is deducted at a higher rate of 20%.

Premature Closure of Union Bank Fixed Deposit

You can close your Union Bank Fixed Deposit before maturity, but a penalty will apply. If the deposit is less than ₹2 crore and has run for at least 7 days, the bank will reduce the interest rate by one percent. You will get the lower of either the reduced interest rate or the original rate for the time your money stayed in the account.