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Save money while enjoying a higher interest rate with Union Bank Of India Recurring Deposits. Union Bank Of India Recurring Deposit Interest Rates differ for resident and NRI customers. Union Bank Of India Senior Citizen RD Interest Rates are higher.
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A Recurring Deposit (RD) is where customers can deposit money to an account every month and earn an interest rate same as or similar to a fixed deposit. This is a very popular form of account in India since it gives the convenience of saving money for a planned expense while earning a higher rate of interest.
Recurring deposit is preferable to a fixed deposit since it allows for a regular monthly deposit as opposed to a lump sum deposit in case of a fixed deposit.
About Union Bank Of India Recurring Deposit Rate
Recurring deposits are ideal for people looking to save small amounts of money on a regular basis. People can plan recurring deposits for lump sum expenses in the near future – like children annual school fees, insurance premium, down payment for large household goods, jewellery purchases, yearly festival shopping, etc. It helps them to conveniently set aside a small amount of money every month for the big expenditure.
Union Bank of India offers two types of recurring deposit Account according to suit customer needs
Union Cumulative Deposit Scheme
Union Monthly Plus
Recurring deposit interest rates are the same as FD rates. The latest interest rates announced by Union Bank of India for deposits below Rs.1Cr are:
| Tenure | Interest Rate (per annum) |
|---|---|
| 6 months – 10months | 6.50% |
| 10 – 14 months | 6.75% |
| >14 months – 3 years | 6.70% |
| >3 years – 5 years | 6.85% |
| >5 years – 10 years | 6.85% |
Senior citizens are paid a slightly higher interest rate for their recurring deposit accounts
| Tenure | Interest Rate (per annum) |
|---|---|
| 6 months – 10months | 7.00% |
| 10 – 14 months | 7.25% |
| >14 months – 3 years | 7.20% |
| >3 years – 5 years | 7.35% |
| >5 years – 10 years | 7.35% |
A recurring deposit account is similar to a term deposit in its functions and features. It is a simple account offered to all the customers of the bank. It is available for
1. What is the minimum amount to open the Union Monthly Plus recurring deposit account?
The Union Monthly Plus recurring deposit account can be opened with a minimum amount of Rs.100.
2. What is the minimum and maximum tenure for Union Cumulative Deposit Scheme?
The minimum deposit tenure is 6 months and up to a maximum of 10 years.
3. How can I open a recurring deposit?
Union Bank of India allows you to open a recurring deposit from the convenience of your home through their internet banking platform – Union eBanking. In a few simple steps you can open a recurring deposit, linked to your savings bank account. You can select the desired monthly instalment and tenure. You can set the maturity instructions and standing instructions for the monthly instalments to be debited from your savings account. Alternately, you can visit the nearest branch, fill up the necessary forms, submit KYC documents to open a recurring deposit account.
4. What are the documents required to open a recurring deposit account?
An existing customer of Union Bank of India can open a recurring deposit account without the requirement for KYC documents. If you are not an existing customer, then the following documents will be needed
5. Is the interest earned on my recurring deposit taxable?
Yes, an interest above Rs.10,000 earned on a recurring deposit is taxable.
6. Can I prematurely withdraw my recurring deposit?
Yes, a recurring deposit can be closed prematurely which would attract a nominal penalty charge. However, Union Monthly Plus recurring deposit does not have penalty charges for premature closure.
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