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Union Bank RD Interest Rates 2024

Last Updated : 09 Jan, 2024
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The Union Bank of India is one of India’s major government-owned banks. It offers an array of RD plans with excellent interest rates of up to 5.90%. The Union Bank RD Calculator online may be used to determine the maturity value of a Union Bank RD. The RD calculator instantly computes the maturity value and all you have to do is enter all parameters accurately, such as the monthly investment amount, tenure, and interest rate.

Recurring deposits are simple to set up and you don’t need a large sum of money to do so with Union Bank of India. The minimum deposit required to create an RD account with UBI is ₹100.

Geeky Takeaways:

  • An investor can open a Union Bank RD account with as little as ₹100.
  • You can make more than one payment in a month to give yourself more options.
  • The number of payments can be changed to suit the investor’s needs.
  • The RD plan needs a fair minimum investment, which starts at ₹100.
  • The biggest payment you can make each month is ₹100,000 or ten times the core amount, whichever is less.

Union Bank RD Interest Rates 2024

Tenure General Citizens  Senior Citizens Super Senior Citizens 
6 months to less than 12 months  5.25% 5.75% 6.00%
12 months  6.30% 6.80% 7.05%
More than 1 year to less than 398 days  6.30% 6.80% 7.05%
399 days 7.00% 7.50% 7.75%
400 days to 2 years 6.30% 6.80% 7.05%
More than 2 years to less than 3 years 6.30% 6.80% 7.05%
3 years 6.50% 7.00% 7.25%
More than 3 years to 5 years 6.70% 7.20% 7.45%
More than 5 years to 10 years 6.70% 7.20% 7.45%

Features of Union Bank Recurring Deposit

1. Minimum Amount : Investors can specify a minimum amount when they start the investment scheme and deposit it as the initial installment.

2. Deposits : A person can make numerous deposits throughout a month.

3. Payment : Investors can adjust the frequency of their payments as they see suitable.

4. Investment : Investment in this RD plan can be done with a minimum of ₹100.

5. Maximum Investment : The maximum deposit amount in a month is ₹100,000 or ten times the core amount, whichever is lower.

6. Penalty : There are no penalties for delayed installments.

How to Open an RD Account in Union Bank?

Step 1 : Go to Union Bank of India’s online net banking platform and log in using your registered credentials. If you are not already a registered client, go to your local branch and fill out the online banking activation form.

Step 2 : From the main page, choose the ‘E-Recurring Deposit’ option. The screen will display an RD account opening form.

Step 3 : Enter all of your personal information, bank account information, RD amount, and tenure.

Step 4 : If you are applying for senior citizen Union Bank RD interest rates, select the box.

Step 5 : Tap the ‘Proceed’ button.

The bank will debit the first installment from your savings account and notify you when the account is successfully opened.

How to Open an Offline Union Bank RD Account?

If you want to create a Union Bank RD account offline, follow the steps outlined below.

Step 1 : Go to your local Union Bank of India branch.

Step 2 : Request an RD form and fill it out completely.

Step 3 : Attach the necessary documents to the form and submit it to a bank representative.

Step 4 : Make your initial RD investment deposit, either in cash or via cheque.

Your application will be processed and your RD account will be activated by the bank.

How to Calculate RD Interest Rates in Union Bank?

The RD interest rates on Union bank recurring deposits are compounded quarterly.

This is the formula to calculate the maturity value .

A= P x (1+R/N) ^ (Nt)

Here ,

  • A Represents the Maturity Amount
  • P Represents the Recurring Deposit
  • R Represents the Rate of Interest
  • T Represents the Tenure
  • N represents the number of compounding interest .

Example:

Akash deposits 500 each month for 9 months. The rate of interest applicable Recurring Deposit account is 6.5% for regular RD. What will be the sum on maturity ?

Solution:

A = P x (1+R/N)^(Nt)

= 4500 x (1+6.5/4)^(4×9/12)

= ₹4,623.

Hence, the interest income will be generated from the recurring deposit is ₹123.

Eligibility Criteria to Start an RD Account with Union Bank

One must be eligible to invest in the Union Bank of India RD scheme. The following are the requirements for opening a Union Bank of India RD account:

  • Resident Individual (single or joint account) 
  • Minors under their natural guardians or by guardians appointed by a court of law
  • Hindu Undivided Families (HUFs)
  • Trusts
  • Corporates
  • Institutions
  • Partnerships
  • Proprietorships

Documents Required for Starting an RD Account

For Opening an RD in UNION BANK Investors must ensure that they have the following documents with them :

1. Proof of Identity

  • Pan card
  • Voter ID
  • Aadhaar card
  • Ration card including a photograph
  • Driving license
  • Senior citizen ID
  • Passport

2. Proof of Address

  • Electricity bill
  • Telephone bill
  • Bank statement with cheque
  • Passport
  • Identity card issued by Post Office

Types of Union Bank RD Accounts

1. Regular Monthly Plus 

The most common type of RD scheme given by Union Bank of India to resident Indians is the Regular Monthly Plus. This RD plan enables existing and new customers of banks to invest and manage their money by making recurring payments based on their financial goals.

Minimum Deposit

₹100

Maximum Deposit

₹1,00,000

Tenure

6 months to 60 months

Interest Rate

5.25% to 7.75%

Eligibility

Indian residents

2. Union Monthly Plus NRO

The Union Monthly Plus NRO RD scheme is an excellent chance for Non-Resident Indians (NRIs) to invest their overseas profits in India and generate interest income. The scheme includes nomination, joint account opening, and loan facilities in addition to the high-yielding income. However, it offers no additional interest to senior citizen NRI applicants.

Minimum Deposit

₹100

Maximum Deposit

₹1,00,000

Tenure

6 months to 60 months

Interest Rate

5.25% to 7.00%

Eligibility

NRIs 

Union Bank RD Premature Withdrawal Rules

The bank permits a premature cessation of its Recurring Deposit Scheme. The depositor will get the interest amount for the time the RD was active. The depositor will not get interest if the deposit account is closed within a month. The Bank does not impose any penalties for prematurely closing an RD account.

Conclusion

Union Bank of India RD investments require small consistent investments. As a result, individuals who desire to save on a regular basis can engage in this scheme. Furthermore, Union Bank of India RDs offer guaranteed returns. As a result, they are seen as a low-risk investment. However, interest income from Union Bank of India RDs is taxed at the investor’s marginal tax rate. As a result, before investing in this plan, they must evaluate the tax implications.

Frequently Asked Questions (FAQs)

Q1. Can I deposit any amount at the Union Bank RD?

Answer:

No, deposits in Union Bank RD accounts must be in multiples of 100.

Q2. What are the rules for nomination for Union Bank RDs?

Answer:

There can be only one candidate for each Union Bank RD account. Resident account holders may name NRIs as nominees, however funds would be repatriated only with the RBI’s approval. Minors who own RD accounts may have a nomination submitted on their behalf by their guardians.

Q3. Is auto-renewal of Union Bank RDs permitted?

Answer:

No, Union Bank does not provide auto renewal for their RD accounts. The bank will transfer the whole RD investment to the customer’s savings account after the scheme matures.

Q4. What is the highest interest on recurring deposits provided by Union Bank of India?

Answer:

The highest interest rate is 5.90% for RDs provided by Union Bank of India.

Q5. Is there a fee levied by the bank for late payments?

Answer:

Union Bank of India does not levy a fee for late payments.

Q6. Is TDS levied on interest earned?

Answer:

Yes, TDS must be paid as per the newest revisions to the Income Tax Act.

Q7. Can I get a loan on the basis of my deposit?

Answer:

Yes, you can get a loan against your deposit. The bank allows up to 75% of the deposit amount at the time of loan application.



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