Union Tax Saver Fixed Deposit (FD) 2025
The Union Tax Saver Scheme can be held by Single individual or can be Joint holder type. The single holder shall be issued to an individual for him or her or under the norms of the Karta of the Hindu undivided family.
The joint holder gets a deposit receipt jointly only to two adults or jointly to an adult and a minor and hence payable to either of the holders or the surviving member.
Tax exemption is applicable under Section 80C of the Income Tax Act, for a single depositor or the specified first holder in the case of joint depositors, however within the eligible investments.
The deposit amount is accepted in the form of DRIC or Fixed Deposit or the Monthly Income Scheme.
Eligibility Criteria for applying for Union Tax Saver Scheme
People who meet the following criteria, are eligible to apply for tax saving fixed deposit:
- Any individual and HUF having PAN card.
- Groups such as Firms, Societies, Institutions, Companies, Clubs, Trust, Corporates etc., cannot use this scheme.
Features of Union Tax Saver Scheme
Account Type |
|
Amount |
|
Rate of Interest | Rates of interest as applicable to general Fixed Deposits will apply. However senior citizens are eligible for an additional interest according to the extant policy of Union Bank. as on December 1, 2015. Rates are subject to change on the bank's discretion. |
Period (Multiple of 3 months) |
|
TDS | Tax exemption is applicable under Section 80C of the Income Tax Act, for a single depositor or the specified first holder in the case of joint depositors, however within the eligible investments. The interest is however taxable. |
Loan against Bank Scheme | You can pledge the scheme to secure a loan or use the scheme as security to any other asset, but only after the lock in period of 5 years. This is also subject to the terms and conditions governing such loans/advances. |
Nomination (if any) | Nomination can be made for the deposit based on the extant guidelines. No nomination can be made with respect of a term deposit applied for and held by or on behalf of a minor. |
Pre-withdrawals | The maturity period of term deposit receipt of any amount is a minimum five years that commences from the date of the receipt and the maximum being 10 years. No term deposit is allowed to be encashed before the expiry of 5 years from the date of its receipt. |
Union Tax Saver Scheme Interest Rates
Rates of interest as applicable to general Term Deposits. However senior citizens are eligible for additional interest as per the extant policy of the Bank.
The interest rate as of 23 May 2023 is 6.70% p.a. for up to 5 years. Rates are subject to change on the bank's discretion.
Documents required for Union Bank Tax Saver FD Scheme
You may be required to submit the following documents while opening the account:
Identity proof:
- PAN (permanent account number) card
- Voter ID card
- Driving license
- Passport
- Government ID card
- Senior citizen ID card
Address proof
- Telephone bill
- Electricity bill
- Passport
- Bank statement with cheque
- ID card issued by post office
Along with the above-mentioned documents, you may be required to submit two passport-sized photographs.
FAQs on Union Tax Saver Scheme
- Where can the Deposits of the Union Tax Saver Scheme, be deposited?
The deposits for the scheme are accepted at all the Union Bank of India branches, existing in India.
- Who are the type of groups of people who may not be eligible for applying for this scheme?
Groups such as Firms, Societies, Institutions, Companies, Clubs, Trust, Corporates etc., cannot use this scheme.
- How is the payment of interest conducted for the Union Saver Scheme?
The interest would be paid either as lofty amount at the time of maturity which is a minimum of 5 years or it can be paid quarterly or monthly depending on the regulatory guidelines for the payment of interest on the nature of term deposit chosen.
- What are the details included in the term deposit receipt?
The term deposit receipt will include:
- name
- address
- Permanent Account Number
- Signature of the depositor
- Other particulars based on the nature of the deposit.
- Do senior citizens get additional benefits from the Union Tax Saver Scheme?
Yes, senior citizens are eligible for additional interest payments based on the Bank's exacts.
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