Union Bank of India Recurring Deposit (RD) 2025
Union Bank of India’s Recurring Deposits offer flexible saving options with deposits starting from ₹100, attractive interest rates up to 7.80%, and the ability to adjust monthly contributions. You also get benefits like loan facility against the deposit, premature withdrawal without penalty, and easy online or branch access.
Union Bank, like other public sector banks, offers RD schemes with attractive interest rates and flexible features. Two schemes form the core of the term deposit portfolio.
These options help investors to steadily build corpus over a period of time by way of monthly remittances under this scheme. Recurring Deposit are also known as Cumulative Deposits.
The RD scheme is open to all categories of customers which includes salaried individuals and corporates.
Recurring Deposit schemes from Union Bank of India
Cumulative Deposit:
The traditional RD scheme with appealing features and benefits. The monthly instalment amount can be as low as Rs.50 with a deposit period ranging from 6 months to 120 months.
A unique feature exclusive to this scheme is that any interim discontinuation of monthly instalments, owing to a genuine reason, will result in the existing being amount converted into a fixed deposit account for the rest of the term.
Union Monthly Plus:
An RD scheme that offers flexibility to invest an amount as per your convenience on the basis of “Core Amount”. The depositor can step up monthly remittances in multiples of this amount.
An added benefit is that no penalty is levied on premature withdrawals and delays in monthly payments.
Features and Benefits of Union Bank of India Recurring Deposits
Cumulative Deposit:
- Resident Indians which include individuals, minors, firms, associations, corporates, clubs, societies etc. are eligible to open the CD account. Two or more individuals can operate the account jointly.
- Monthly instalment amount starts as low as Rs.50 and in multiples of Rs.10 thereafter.
- The depositor can choose a period that best suits investment needs from a term option ranging from 6 to 120 months in multiples of 1 month.
- Once the term of deposit is selected at the time of initiation, it cannot be altered. However, in case of discontinuation of payment of monthly installments, owing to a valid reason, the amount parked in the CD account can be converted into a fixed deposit for rest of the term.
- Interest rates are applied on a quarterly basis. The maturity amount will be payable one month after the last installment payment.
Union Monthly Plus:
- Open for investment to a large category of customers such as individuals, institutions, corporates, HUF etc.
- The depositor can choose a “core amount” which acts as base amount for stepping up future monthly installments, paving way for flexibility. Future installments cannot fall below the chosen core amount.
- The period of deposit starts at 6 months with an upper cap of 60 months. The customer can choose a term between this range in multiples of 1 month.
- No penalty is levied for delay in monthly payments or premature closure. This feature is one of its kind in the banking segment.
- Interest rates will be computed on daily product basis.
- Depositors also qualify for loan facility of up to 75% of the outstanding amount in the RD account.
- Nomination facility is available
- Premature closure of the RD is allowed
- Minimum core amount is Rs.100 and maximum is Rs.1 lakh
Interest Rates Offered on Union Monthly Plus (RD)
Tenure | Interest rate for General Public | Interest rate for Senior Citizens |
Seven to 14 days | 3.50% | 4.00% |
15 to 30 days | 3.50% | 4.00% |
31 to 45 days | 3.50% | 4.00% |
46 to 90 days | 4.50% | 5.00% |
91 to 120 days | 4.80% | 5.30% |
121 to 180 days | 4.90% | 5.40% |
181 days to less than a year | 6.25% | 6.75% |
1 year | 6.75% | 7.25% |
Less than 1 year to 398 days | 6.75% | 7.25% |
399 days | 7.25% | 7.75% |
400 days to two years | 6.50% | 7.00% |
More than two years to less than 998 days three years | 6.50% | 7.00% |
999 days | 6.40% | 6.90% |
More than 1000 days to less than 3 years | 6.50% | 7.00% |
Three years | 6.50% | 7.00% |
More than 3 years to 5 years | 6.50% | 7.00% |
More than five years to 10 years | 6.50% | 7.00% |
Note: The rates mentioned below are for deposits below Rs.2 crore. They are effective from 1 June 2024
Senior citizens are eligible for an additional rate of 0.50% over the prevailing rates.
Process for Opening a Recurring Deposit with Union Bank of India Online and Offline
Existing customers of Union Bank can log on to their internet banking account and open a CD account online directly linked to their savings or current account. New customers can approach the nearest banking branch for instructions on opening an account. You will be required to produce the documents listed below to facilitate the initiation.
RD Article pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes
- Monthly Recurring Deposit
- Indian Bank Recurring Deposit
- Union Bank Recurring Deposit
- UCO Bank Recurring Deposit
FAQs on Union Bank of India Recurring Deposit
- What are the different methods to open a Cumulative Deposit account?
You can open a Cumulative Deposit account by visiting the nearest branch, via customer care, and online.
- Will I be provided a receipt for the Cumulative Deposit account?
No, you will not get a receipt for the Cumulative Deposit account. However, a passbook will be provided.
- Will senior citizens be provided an additional rate of interest?
Yes, senior citizens will be provided with an additional interest rate of 0.50%.
- Is it possible to change the nominees added to the account?
Yes, you can change the nominees added to the account.
- In the case of Cumulative Deposits, will TDS be applicable?
No, TDS will not be applicable to Cumulative Deposits.
- What is the Union Bank of India Recurring Deposit Scheme?
The Union Bank of India Recurring Deposit Scheme is a recurring deposit option allowing you to invest small amounts monthly for a fixed tenure. It caters to various segments including lower, middle, and upper-middle class individuals, as well as salaried employees. The scheme is designed for those who prefer a disciplined savings approach with flexible tenures ranging from 6 to 120 months.
- Who is eligible to open a Union Recurring Deposit account?
Indian residents holding a savings account with Union Bank, joint account holders, visually impaired and illiterate individuals, minors, associations, clubs, societies, purdanasheen ladies, and institutions or agencies or trusts permitted by the RBI are eligible to open a Union Bank Recurring Deposit account.
- What are the minimum and maximum instalment amounts for the Union Recurring Deposit?
The minimum instalment amount for the Union Recurring Deposit is Rs. 50 per month. You can choose a tenure between 6 months and 120 months in multiples of one month. The instalment amount cannot be changed once set, although the deposit can be converted into a Term Deposit before maturity, given the Term Deposit tenure exceeds the cumulative deposit tenure.
- How is the interest calculated on the Union Recurring Deposit, and is TDS applicable?
Interest on the Union Recurring Deposit is compounded quarterly at permissible levels. Yes, Tax Deducted at Source (TDS) is applicable to the interest component of the cumulative deposit.
- When will the maturity amount be disbursed for the Union Recurring Deposit?
The maturity amount of the Union Recurring Deposit will be disbursed one month after the last instalment of the deposit has been made.
- Can the Union Recurring Deposit be opened through online banking?
Yes, you can open a Union Recurring Deposit account through Union Bank's net banking platform, as well as through offline channels by visiting a branch.
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