City Union Bank FD Interest Rates 2025

City Union Bank (CUB), formerly known as The Kumbakonam Bank Limited, was incorporated as a limited company in 1904. The bank provides deposits and loans to retail customers. It offers different Fixed Deposit (FD) schemes to the customers to fit their needs. Here is everything you need to know about City Union Bank fixed deposits.

Highlights for 2025 Fixed Deposit Scheme of City Union Bank

City Union Bank Fixed Deposit Interest Rates 2025

The interest rates given in the below table are for deposits below Rs.1 crore effective from 1 September 2024. 

*Interest rates are subject to change from time to time

Different Types of IOB FD Schemes

1. Fixed Deposit

This fixed deposit scheme allows deposits starting at Rs. 100 for durations ranging from 7 days to 10 years. Accounts can be opened online, and bulk deposits of Rs. 1 crore or more are accepted. Senior citizens receive additional interest from the first year, with cumulative deposits earning quarterly compounded interest.

2. Flexifix Deposit

This account combines fixed deposit benefits with withdrawal flexibility. The minimum deposit is Rs. 10,000, with increments of Rs. 5,000. Tenure ranges from 30 days to 5 years, and withdrawals can be made in Rs. 5,000 units. Simple interest is paid monthly, quarterly, half-yearly, or annually.

Special Features and Benefits of City Union Bank FD 

• Deposit an amount convenient for you and earn interest periodically on this sum.
• Competitive interest rates are offered on the deposits.
• Each customer can open multiple FD accounts under different schemes offered.
• Loan and overdraft facilities are available under certain schemes.
• Senior citizens aged 60 years and above are eligible for an additional interest rate from the first year.
• An auto-renewal option is available.
• FD accounts can be opened online or offline based on your preference.
• A nomination facility is available.
• The bank accepts Form 15G/15H to avoid TDS in genuine cases.
• Certain schemes may offer a pre-closure facility.
• Bulk deposits are accepted in certain cases.

Basic Eligibility Criteria for CUB FD

• Resident individuals, either single and joint accounts 
• MSMEs
• Corporates

Documents Required to Open CUB FD

• Identity Proof:
  • Passport 
  • PAN card 
  • Voter’s Identity 
  • Card Driving license 
  • Identity card/confirmation from the employer/other banks (subject to branch’s satisfaction) 
  • An ID card issued by recognised Educational Institutions 
  • ID issued by Postal Authorities 
  • Letter from a recognised public authority or public servant (not below the rank of the Tahsildar) verifying the identity and residence of the customer to the satisfaction of the bank 
  • Job card issued by NREGA duly signed by an officer of the State Government 
  • Letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number 
• Address Proof:
  • Passport
  • Voter’s Identity card
  • Driving licence
  • Telephone bill (not older than 2 months – installation should be at least before 6months)
  • Bank account statement
  • Letter from a recognised public authority or public servant (not below the rank of the Tahsildar) verifying the identity and residence of the customer to the satisfaction of the bank
  • Latest electricity bill
  • Ration card
  • Letter from employer (subject to the satisfaction of the bank)
  • ID issued by Postal Authorities
  • Job card issued by NREGA duly signed by an officer of the state government
  • Letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number
  • Consumer passbook issued by a gas agency
  • A rent agreement indicating the address of the customer duly registered with the state government or similar registration authority

Tax Benefits on City Union Bank Fixed Deposit

CUB Income Tax Saver Deposit

Resident individuals and HUFs can deposit in this account to claim income tax deductions of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. The scheme has a five-year lock-in period and offers two variants:

• Tax Saver Silver: Minimum deposit of Rs. 100 with monthly or quarterly interest payouts.
• Tax Saver Gold: Minimum deposit of Rs. 1,000 with cumulative interest paid on maturity.

If annual interest exceeds Rs. 40,000 (Rs. 50,000 for senior citizens), the excess is taxable. Interest is taxed at your income slab rate. If your income is below the basic exemption limit, submitting Form 15G/15H can prevent TDS.

FD Interest Rate Calculator

Get a glimpse of the possible maturity amount and interest you can earn after investing a certain amount in a term deposit account using ClearTax’s FD Calculator.

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