Union Bank Fixed Deposit (FD) Interest Rate 2025
The Union Bank of India is one of the largest government-owned banks in the country which offers its customers a wide range of financial products. The bank also offers ease in accessing these products through a digital banking platform.
The Union Bank of India offers the facility of fixed deposit to its customers along with an interest rate which ranges from 3.40% p.a. to 6.60% p.a.
Types of Fixed Deposits by Union Bank of India
- DRIC
- Fixed Deposit Scheme
- Monthly Income Scheme
- Union Tax-Saver Deposit
- Easy Tax-Saver Deposit Scheme
- Short-Deposit Receipt
Features of Union Bank Deposit Schemes
Scheme Name | Key Features |
Deposit Re-Investment Scheme (DRIC) | • Minimum deposit period: 6 months • Quarterly compounded high interest rate • Loan facility available against DRIC deposit • Nomination facility available • Minimum deposit: ₹100 (Rural/Semi-urban), ₹500 (Urban/Metro) • Tenure: 6 months to 120 months |
Fixed Deposit Scheme | • Tenure: 7 days to 10 years • Minimum deposit: ₹5,000 (Rural/Semi-urban), ₹10,000 (Urban/Metro) • Higher interest rates for senior citizens • Loan facility up to 90% of principal + accrued interest |
Monthly Income Scheme (MIS) | • Interest payable monthly at contracted rate • Tenure: 6 months to 10 years • Interest paid at a discounted value |
Union Tax-Saver Fixed Deposit | • 5-year lock-in period • Minimum: ₹5,000, Maximum: ₹1.5 lakh • Tenure: 5–10 years• Eligible for Section 80C tax exemption • Extra interest for senior citizens • Interest payout options: monthly / quarterly / lump sum at maturity |
Easy Tax-Saver Deposit Scheme | • Investment allowed through monthly instalments • Option to invest lump sum anytime • Investment eligible for tax exemption |
Short-Deposit Receipt (SDR) | • Tenure: 7 days to 10 years • Minimum deposit of ₹5 lakh for tenure of 7–14 days • Deposits of 7 days to < 6 months classified as short-term deposits |
Union Bank Fixed Deposit Interest Rates for deposits below Rs.3 crore
Tenure | General Public FD interest rate (per annum) |
7 days to 45 days | 3.40% |
46 days to 90 days | 4.40% |
91 days to 120 days | 4.70% |
121 days to 180 days | 4.90% |
181 days to less than 1 year | 6.15% |
1 year | 6.40% |
>1 year to 996 Days | 6.50% |
997 Days | 6.30% |
> 998 days to less than 3 years | 6.50% |
3 years | 6.60% |
> 3 Year to 5 years | 6.40% |
>5 Years to 10 Years | 6.40% |
Note: The interest rate mentioned in the table is effective from 20 August 2025.
Eligibility Criteria for the Union Bank Fixed Deposit
The eligibility criteria for opening the fixed deposit in Union Bank would be any resident individual for single accounts and two or more individuals for joint accounts will be required. Apart from this, Illiterate persons, Blind persons, Purdanasheen women, minors, associations, clubs, societies, etc. and Trusts, Institutions specifically permitted by the RBI can open an FD account.
Documents Required for the Union Bank Fixed Deposit for Individuals
The documents which are required for opening an fixed deposit account with the Union Bank of India are:
For Proof of Identification
- Aadhaar Card
- PAN
- Voter ID
- Driving License
- Passport
- Recent passport-sized photographs
For Proof of Address (if Aadhaar card does not contain updated address)
- Utility bill - Less than 2 months old
- Property or Municipal tax receipt
- Pension payment orders
FAQs on Union Bank FD
- What is the range of interest rate on the Union Bank fixed deposit?
The rate of interest depends on the tenure of the FD and ranges between 3.40% per annum to 6.60% per annum.
- What is the interest rate offered to senior citizens on the fixed deposit?
Senior citizens will receive an additional interest rate as decided by the Union Bank of India.
- How can I break my Union Bank FD?
You can withdraw your fixed deposit account through the process of premature withdrawal. You will have to visit the branch of the bank and fill the form for premature withdrawal along with producing the receipt for your fixed deposit account. It is important to know that most banks charge a nominal fee for premature withdrawal which need to be paid. The bank will then process the application and the amount will be credited to the desired account.
- Will TDS be applicable for the fixed deposits at Union Bank?
Yes, TDS will be deducted on the interest accrued on your fixed deposit as per the Income Tax Act. However, if you choose to deposit your money in a Tax-Saver FD, you will receive a tax exemption of up to Rs.1.5 lakh as per Section 80C of the Income Tax Act.
- How can I open a FD account with the Union Bank of India?
To open a fixed deposit account with the bank, you can either visit your nearest branch of the bank or apply online through the website of the Union Bank of India. Apart from this, you can also call the 24/7 customer care number of the bank and open your account with the help of a bank representative.
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