Union Bank of India’s FD rates with up to 6.85% p.a. for general citizens and 7.60% for super seniors! Explore flexible tenures, tax-saving options, and secure investments. Start growing your savings with Union Bank’s fixed deposits today! Check the latest rates now.
Union Bank of India’s Fixed Deposits (FDs) offer a safe and rewarding way to achieve your financial goals. With competitive Union Bank of India deposit rates, flexible tenures, and additional benefits for senior and super senior citizens, these FDs are designed to cater to diverse financial needs. In this comprehensive guide, we explore the latest FD interest rates effective from June 12, 2025, key features, eligibility, and tips to optimize your returns. Whether you’re a young investor or a retiree, this blog post will help you make informed decisions to secure your financial future.
Why Choose Union Bank of India Fixed Deposits?
Union Bank of India, one of the leading public sector banks in India, has been a trusted name since its inception in 1919. With over 8,500 branches and a strong reputation for stability, it offers a range of fixed deposit schemes that ensure guaranteed returns, safety, and flexibility. Here’s why Union Bank FDs stand out:
- Attractive Interest Rates: Competitive rates ranging from 3.40% to 6.85% p.a. for general citizens, with higher rates for senior and super senior citizens.
- Flexible Tenures: Options from 7 days to 10 years to suit short-term and long-term financial goals.
- Additional Benefits for Seniors: Senior citizens (60+ years) get an extra 0.50% p.a., while super senior citizens (80+ years) enjoy an additional 0.75% p.a. on deposits up to ₹5 crore.
- Loan Facility: Avail loans up to 90% of your FD amount for emergency needs.
- Tax-Saving Options: Benefit from tax deductions under Section 80C with a 5-year lock-in FD.
- DICGC Insurance: Deposits up to ₹5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring safety.
Union Bank of India FD Interest Rates (Effective June 12, 2025)
The Union Bank of India deposit rates for term deposits below ₹3 crore, effective from June 12, 2025, are tailored to provide competitive returns across various tenures. Below is a detailed breakdown of the interest rates for general citizens, followed by additional rates for senior and super senior citizens.
FD Interest Rates
Union Bank of India offers enhanced rates for resident senior citizens (aged 60 years and above) and super senior citizens (aged 80 years and above) on term deposits up to ₹5 crore. These additional rates are applicable for deposits opened or renewed on or after December 1, 2022. Here are the rates for general citizens, senior and super senior citizens:
Additional Rates for Senior and Super Senior Citizens
- Senior Citizens: Additional 0.50% p.a. over the regular rates.
- Super Senior Citizens: Additional 0.75% p.a. over the regular rates (0.25% more than senior citizen rates).
| Period | General Citizens (% p.a.) | Senior Citizens (% p.a.) | Super Senior Citizens (% p.a.) |
| 7–14 Days | 3.40 | 3.90 | 4.15 |
| 15–30 Days | 3.40 | 3.90 | 4.15 |
| 31–45 Days | 3.40 | 3.90 | 4.15 |
| 46–90 Days | 4.40 | 4.90 | 5.15 |
| 91–120 Days | 4.70 | 5.20 | 5.45 |
| 121–180 Days | 4.90 | 5.40 | 5.65 |
| 181 Days to < 1 Year | 6.15 | 6.65 | 6.90 |
| 1 Year | 6.60 | 7.10 | 7.35 |
| > 1 Year to 398 Days | 6.60 | 7.10 | 7.35 |
| 399 Days | 6.60 | 7.10 | 7.35 |
| 400 Days | 6.60 | 7.10 | 7.35 |
| 401 Days to 455 Days | 6.50 | 7.00 | 7.25 |
| 456 Days | 6.85 | 7.35 | 7.60 |
| 457 Days to 2 Years | 6.50 | 7.00 | 7.25 |
| > 2 Years to 996 Days | 6.50 | 7.00 | 7.25 |
| 997 Days | 6.30 | 6.80 | 7.05 |
| > 998 Days to < 3 Years | 6.50 | 7.00 | 7.25 |
| 3 Years | 6.60 | 7.10 | 7.35 |
| > 3 Years to 5 Years | 6.40 | 6.90 | 7.15 |
| > 5 Years to 10 Years | 6.40 | 6.90 | 7.15 |
The highest rate for senior citizens is 7.35% p.a. and for super senior citizens is 7.60% p.a. for a 456-day tenure, making Union Bank FDs a lucrative option for retirees.
Key Features of Union Bank of India Fixed Deposits
Union Bank of India offers a variety of FD schemes to suit different financial needs. Here are some highlights:
- Flexible Tenure Options: Choose from short-term (7 days to 1 year), medium-term (1 year to 5 years), or long-term (up to 10 years) deposits to align with your financial goals.
- Minimum Deposit: Start with as little as ₹1,000, making it accessible for all investors.
- Premature Withdrawal: Allowed with a 1% penalty for deposits below ₹2 crore if withdrawn after 7 days. No interest is paid if closed within 7 days.
- Loan Against FD: Access up to 90% of your FD amount as a loan, offering liquidity during emergencies.
- Nomination Facility: Add a nominee to ensure seamless transfer of funds.
- Auto-Renewal: FDs are automatically renewed at maturity for the same tenure at prevailing rates, ensuring hassle-free reinvestment.
- Tax-Saver FD: Invest up to ₹1.5 lakh in a 5-year FD to claim deductions under Section 80C of the Income Tax Act, 1961.
- Monthly Income Scheme (MIS): Ideal for those seeking regular income, with monthly interest payouts.
- Union Sumvridhi (333 Days): A special scheme offering competitive rates for a fixed 333-day tenure.
Tax Implications on Union Bank FDs
Interest earned on Union Bank FDs is taxable as per your income tax slab rate. Here are key points to note:
- TDS Deduction: Tax Deducted at Source (TDS) is applicable if the interest earned exceeds ₹40,000 p.a. for general citizens and ₹50,000 p.a. for senior citizens. The TDS rate is 10% with a valid PAN, or 20% without a PAN.
- Form 15G/15H: If your total income is below the taxable limit, submit Form 15G (general citizens) or Form 15H (senior citizens) to avoid TDS deduction.
- Tax-Saver FD: A 5-year FD qualifies for a tax deduction of up to ₹1.5 lakh under Section 80C, but it has a mandatory lock-in period.
How to Open a Union Bank of India Fixed Deposit
Opening an FD with Union Bank of India is simple and can be done online or offline:
Online Process
- Log in to Union Bank’s Internet Banking or Vyom Mobile App.
- Navigate to the “Fixed Deposit” section.
- Select the deposit amount, tenure, and interest payout frequency (monthly, quarterly, or at maturity).
- Add nominee details and maturity instructions.
- Submit the request to book your FD instantly. A confirmation receipt will be generated.
Offline Process
- Visit the nearest Union Bank of India branch.
- Fill out the FD application form with details like deposit amount, tenure, and nominee.
- Submit KYC documents (Aadhaar, PAN, proof of age for senior citizens).
- Deposit the amount via cash, cheque, or account transfer.
- Receive the FD receipt.
Eligibility
- Resident individuals, HUFs, minors (through guardians), associations, societies, and trusts.
- Senior citizens (60+ years) and super senior citizens (80+ years) for additional rates.
- Joint accounts are allowed, with the senior/super senior citizen as the first account holder to avail extra rates.
Documents Required
- Identity Proof: Aadhaar, PAN, passport, voter ID, or driving license.
- Address Proof: Aadhaar, passport, or utility bill.
- Age Proof for Seniors: Senior school leaving certificate, birth certificate, or other valid documents.
- Existing account holders may not need additional KYC documents.
How to Maximize Returns with Union Bank FDs
To make the most of your Union Bank of India fixed deposit, consider these tips:
- Choose the Right Tenure: Opt for the 456-day tenure to get the highest rate of 6.85% (7.35% for seniors, 7.60% for super seniors).
- Ladder Your FDs: Spread your investment across multiple tenures to balance liquidity and returns.
- Opt for Cumulative FDs: Reinvest interest quarterly to benefit from compounding, especially for long-term goals.
- Leverage Senior Citizen Benefits: If eligible, invest as a senior or super senior citizen to earn higher rates.
- Use an FD Calculator: Use Union Bank’s online FD calculator to estimate returns and plan your investment.
- Monitor Rate Changes: Interest rates are subject to change, so check the latest rates before investing.
- Tax Planning: Invest in a tax-saver FD to reduce your taxable income, and submit Form 15G/15H if applicable to avoid TDS.
Comparing Union Bank FD Rates with Other Banks
To ensure you’re getting the best deal, compare Union Bank’s FD rates with other leading banks:
- Bank of Baroda: Offers 7.25% p.a. for 399 days (7.75% for seniors).
- Punjab National Bank: Provides 7.25% p.a. for 400 days.
- HDFC Bank: Offers 7.40% p.a. for a 55-month tenure.
Union Bank’s 456-day FD at 6.85% p.a. (7.35% for seniors, 7.60% for super seniors) is competitive, especially for short- to medium-term investments. For longer tenures, other banks may offer slightly higher rates, so compare based on your investment horizon.
Why Senior and Super Senior Citizens Should Consider Union Bank FDs
For retirees, Union Bank’s FDs are an excellent choice due to:
- Higher Interest Rates: Up to 7.60% p.a. for super senior citizens.
- Regular Income Option: The Monthly Income Scheme ensures steady cash flow for daily expenses.
- Safety: Backed by DICGC insurance up to ₹5 lakh, ensuring peace of mind.
- Flexible Liquidity: Loans against FDs and premature withdrawal options provide financial flexibility.
Final Thought
Union Bank of India’s Fixed Deposits are a reliable and flexible investment option for 2025, offering competitive FD interest rates, safety, and tailored benefits for senior and super senior citizens. With rates up to 6.85% p.a. for general citizens and 7.60% p.a. for super senior citizens, along with features like loan facilities, tax-saving options, and flexible tenures, these FDs cater to diverse financial needs. Whether you’re planning for short-term goals or securing your retirement, Union Bank FDs provide a secure path to grow your savings.
Ready to invest? Visit the official Union Bank of India website or download the Vyom Mobile App to open your FD today. For the latest updates on rates and schemes, check with your nearest branch or the bank’s official portal. Start your journey to financial security with Union Bank of India’s Fixed Deposits now!
Disclaimer: Interest rates are subject to change. Always verify the latest rates on the official Union Bank of India website before investing.
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