Grow your savings with the Union Bank of India Recurring Deposit, a popular option to get good returns on your investment. Union Bank of India offers two RD schemes; Union Monthly Plus Deposit Scheme and Cumulative Deposit Scheme. These schemes provide flexibility in deposit amounts and tenure ranging from 6 - 120 months.
Whether you are planning to save for short-term or long-term financial goals, Union Bank of India's RD interest rates ranging from 4.90% to 7.25% offer you the opportunity to meet your savings needs effectively.
Enjoy minimum deposits of ₹100 for the Union Monthly Plus and ₹50 for the Cumulative Deposit Scheme, making the Union Bank of India RDs accessible to a wide range of investors.
Union Bank Recurring Deposit Interest Rates
The Union Bank of India RD schemes offer attractive interest rates that range from 4.90% to 7.25% and vary based on different tenures ranging from 6 to 120 months. Furthermore, senior citizens can enjoy an additional rate of 0.50% and super senior citizens can enjoy an extra 0.75% on top of the existing rates. These RD interest rates are competitive offering you reliable options to maximise your savings.
The Union Bank recurring deposit rate of interest for individuals, senior citizens & super senior citizens are:
| Maturity Period | Regular Individuals | Senior Citizens | Super Senior Citizens |
|---|---|---|---|
| 121-180 Days | 4.90% | 5.40% | 5.65% |
| 181 Days - < 1 year | 5.75% | 6.25% | 6.50% |
| 1 year | 6.75% | 7.25% | 7.50% |
| >1 year - 398 Days | 6.75% | 7.25% | 7.50% |
| 399 Days | 7.25% | 7.75% | 8.00% |
| 400 Days - 2 year | 6.50% | 7.00% | 7.25% |
| > 2 year - 998 days | 6.50% | 7.00% | 7.25% |
| 999 days | 6.40% | 6.90% | 7.15% |
| >1000 days - < 3 Years | 6.50% | 7.00% | 7.25% |
| 3 years | 6.50% | 7.00% | 7.25% |
| > 3 Year - 5 years | 6.50% | 7.00% | 7.25% |
| >5 Years - 10 Years | 6.50% | 7.00% | 7.25% |
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*Note- The interest rates are subject to market rates and may change. Please check Union Bank of India's official website for the latest information.Are you looking for a personal loan?
Union Bank of India RD Calculator
Union Bank of India offers a Recurring Deposit (RD) Calculator to help you estimate the maturity amount of your RD investments. This RD calculator online allows you to input the monthly deposit amount, tenure, and the interest rate. After which, it calculates the maturity amount based on these factors, taking into account the compounding frequency of Union bank.
The calculator is a useful tool to plan your savings and investments, while providing a clear picture of the returns that you can get from your RD after the maturity period. You can easily access the calculator on Union Bank of India's official website.
| RD Maturity Date | : |
| Total Invested Amount | : ₹1,000 |
| Total Interest Earned | : ₹532 |
| Total Maturity Amount | : ₹12,532 |
Calculation of Union Bank of India RD Maturity Amount
Calculating the maturity amount of your Union Bank of India RD can help you better plan your investment and finances. You can calculate the maturity amount using the formula below:
Maturity Value = Deposit × [((1 +r/100)^n - 1 / (r/100)] × (1 + r/100)
Let’s calculate the maturity amount if the deposit amount is ₹2000, interest rate is 6.75% and the tenure is 1 year.
Maturity Value = 2000 × [((1 +0.00675)^12 - 1 / (0.00675)] × (1 + 0.00675)
Maturity Value = 2000 × [((1 .0.00675)^12 - 1 / (0.00675)] × (1.00675)
Maturity Value = ₹24,891
Therefore, the estimated maturity amount for your Bank of India RD with a monthly deposit of ₹2,000 for a tenure of 1 year at 6.75% interest rate is approximately ₹24,897.
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RD Interest Rates of Top Banks
Here is a comprehensive list of RD interest rates from top banks:
| Bank Recurring Deposit | RD Interest Rates (p.a) General Public |
RD Interest Rates (p.a) Senior Citizens |
|---|---|---|
| Union Bank of India RD | 5.75% to 6.50% | 6.25% to 7.00% |
| ICICI Bank RD | 4.75% to 7.20% | 5.25% to 7.75% |
| State Bank of India RD | 6.50% to 7.00% | 7.25% to 7.50% |
| Axis Bank RD | 5.75% to 7.20% | 6.25% to 7.85% |
| Bank of Maharashtra RD | 5.50% to 6.25% | 6.00% to 6.75% |
| Indian Overseas Bank RD | 5.75% to 7.30% | 6.25% to 7.80% |
| Bank of India RD | 4.50% to 6.00% | 5.00% to 6.50% |
| Punjab National Bank RD | 6.00% to 7.25% | 6.50% to 7.75% |
| Kotak Mahindra Bank RD | 6.00% to 7.40% | 6.50% to 7.90% |
| Federal Bank RD | 5.75% to 7.50% | 6.25% to 8.00% |
| IDBI Bank RD | 6.25% to 7.00% | 6.75% to 7.50% |
| IndusInd Bank RD | 7.00% to 7.75% | 7.50% to 8.25% |
| Canara Bank RD | 6.15% to 7.25% | 6.65% to 7.75% |
| Bandhan Bank RD | 4.50% to 7.85% | 5.25% to 8.35% |
| HDFC Bank RD | 4.50% to 7.25% | 5.00% to 7.75% |
| City Union Bank RD | 6.25% to 7.00% | 6.50% to 7.50% |
| Dhanalakshmi Bank RD | 6.50% to 7.25% | 6.50% to 7.75% |
| Yes Bank RD | 6.10% to 7.75% | 6.60% to 8.25% |
| Saraswat Bank RD | 7.00% to 7.50% | 7.50% to 8.00% |
| South Indian Bank RD | 5.00% to 7.40% | 5.50% to 7.90% |
| Karur Vysya Bank RD | 6.25% to 7.50% | 6.25% to 8.00% |
| Indian Bank RD | 4.50% to 7.25% | 5.00% to 7.75% |
| Bank of Baroda RD | 5.75% to 7.25% | 6.25% to 7.75% |
| TMB RD | 6.75% to 7.75% | 7.00% to 8.25% |
| Jammu and Kashmir Bank RD | 5.75% to 7.10% | 6.25% to 7.60% |
| DBS Bank RD | 6.00% to 7.50% | 6.50% to 8.00% |
| Karnataka Bank RD | 5.80% to 7.40% | 6.20% to 7.90% |
| Post Office RD | 0.065 | 0.065 |
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Note: The interest rates are subject to change. Do visit the official website for updated rates.Did you know that besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.
Union Bank of India RD Eligibility
To begin investing in the Union Bank recurring deposit, there are certain eligibility criteria that you must fulfil. The eligibility criteria will depend on the Union Bank of India RD schemes, these are:
Eligibility for Union Monthly Plus Scheme
- An individual can open an RD account in their own name.
- More than one individual can open an RD jointly with suitable repayment instructions.
- A minor's RD account can be opened by their natural guardian or a guardian appointed by the court.
- RD accounts can also be opened in the name of institutions, corporate entities, proprietorships, partnerships, trusts, HUFs, etc.
Eligibility for Cumulative Deposit Scheme
- Any resident individual can open a single RD account.
- Two or more individuals can jointly open an RD account.
- Illiterate persons and visually impaired persons are eligible to open RD accounts.
- Purdanasheen ladies can also open RD accounts.
- Minors can open RD accounts with their natural guardians or court-appointed guardians.
- Associations, clubs, societies, trusts, institutions, and agencies specifically permitted by the RBI can open "Cumulative Accounts" in single or joint names.
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Union Bank Recurring Deposit Schemes
The Union Bank of India RD schemes each offering unique features and benefits.
Union Monthly Plus
- Recurring Deposit with Step-Up and Step-Down Options: The scheme allows you to choose a "Core amount" at the time of opening the account and deposit this as the initial instalment. With the minimum deposit being ₹100 and the maximum amount being ₹1,00,000.
- Step-Up Option: You can increase your monthly instalment amount up to 10 times the Core Amount during any month with the maximum being capped at ₹1,00,00.
- Step-Down Option: You can also reduce the amount after stepping up in any subsequent month, but not less than the Core amount.
- Minimum and Maximum Period: The scheme has a minimum tenure of 6 months and a maximum tenure of 60 months.
- Rate of Interest: The interest rate ranges from 4.90% to 7.25%.
- Penalty for Delayed Instalment: No penalty is charged for delayed payment of instalments.
- TDS Deduction: TDS will be deducted on the RD as per the RBI guidelines, if your interest for 1 financial year exceeds the threshold.
- Loan Facility: You can avail loan facility against the RD, when you are in need of emergency funds.
- Nomination Facility: The scheme allows you to nominate an individual as per guidelines.
- Premature Closure: Premature closure is allowed, with interest paid for the period the RD is active for at the applicable rate with no penalty charged.
Cumulative Deposit Scheme
- Flexible Tenure: The minimum period for the scheme starts from 6 months while the maximum period is 10 years or 120 months. Easily choose a tenure that fits your needs.
- Consistent Savings: The scheme offers a minimum monthly instalment of ₹50 with no upper limit on your monthly contribution, allowing you to maximise your savings potential.
- Attractive Interest Rates: UBI recurring deposit interest rates range from 4.90% to 7.25%, making it a compelling choice to watch your savings grow.
- Compound Interest: The bank offers compound interest, where the interest is calculated on both the principal amount and previously earned interest, increasing your overall earnings.
- No Penalty for Late Deposits: No penalty is charged for delayed or missed monthly instalments for this scheme as of April 1, 2020.
- Loan Facility: You can also get a loan against your RD if you need to meet sudden emergency requirements.
- Nomination Facility: You can appoint a nominee to ensure your RD is easily transferred to your loved ones in case of an unforeseen event.
- Premature Closure: You can withdraw your funds before maturity, but interest earned will be charged a penalty and the final amount will be calculated based on the actual tenure.
Union Bank of India RD Premature Withdrawal
Premature withdrawal is allowed for both Cumulative Term Deposit and Union Monthly Plus. However, there are no penalty charges on Union Monthly Plus,while there are penalty charges on the Cumulative Term Deposit scheme.
In the case of premature closure for Cumulative Deposit Scheme for deposit amounts less than ₹2.00 crores that have been active for 7 days or more, the interest paid will be at a rate 1.00% less than the applicable interest rate. The interest will be calculated for the period it has actually remained with the Bank or the contracted rate, whichever is lower.
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Frequently Asked Questions in Union bank of India RD Scheme
Yes, recurring deposit is available in Union Bank of India.
The interest rates of RD in Union Bank of India ranges from 4.90% to 7.25%.
Yes, you can convert your Recurring Deposit to a Fixed Deposit before maturity, subject to certain conditions and penalties.
Yes, you can close an RD before the maturity date.
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