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City Union Bank FD Interest Rates 2025

By Mayashree Acharya

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Updated on: Apr 2nd, 2025

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12 min read

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

Tenure

7 days to 10 years

Senior Citizen Interest Rates

5.00% to 8.00% p.a.

Public Interest Rates

5.00% to 7.50% p.a.

Highest Interest Rates for Public

7.50%

Highest Interest Rates for Senior Citizens

8.00% 

Premature Withdrawal

1% Penalty

Minimum Deposit Amount

Rs 10,000

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 10 February 2025. 

Deposit Tenure

Interest Rates for Regular Customers (% p.a.)*

Interest Rates for Senior Citizens (% p.a.)*

Interest Rates for Super Senior Citizens (% p.a.)*

7-14 days

5.00

5.00

5.00

15-45 days

5.50

5.50

5.50

46-90 days

5.75

5.75

5.75

91-180 days

6.00

6.00

6.00

181-270 days

6.25

6.50

6.50

271-332 days

6.50

6.75

6.75

333 days

7.50

8.00

8.10

334-400 days

7.00

7.25

7.30

401 days-3 years

6.50

6.75

6.75

3-10 years

6.25

6.50

6.50

Tax Saver Scheme

7.10

7.10

7.10

*Interest rates are subject to change from time to time

Different Types of City Union Bank FD Schemes

Type of FD Scheme

Key Features

Minimum Amount

Tenure

CUB Fixed Deposit

  • Simple or Cumulative interest options.
  • Monthly, quarterly, half-yearly, or annual payout options.
  • Loan/OD available.
  • Preclosure & auto-renewal options.
  • TDS applicable.
  • Senior citizens receive additional interest.

Bulk deposit of Rs. 1 Crore and above are accepted

7 days to 10 years

CUB Flexifix Deposit

  • Blend of FD & flexibility of withdrawal.
  • Interest on pro-rata basis for withdrawn units.
  • Withdrawal in units of ₹5,000/-.
  • Overdraft (OD) facility available, no loan facility.
  • TDS applicable.
  • Senior citizens earn additional interest.
₹10,000/- and multiples of ₹5,000/-30 days to 5 years

CUB Income Tax Saver Deposit

  • Tax benefit under Section 80C.
  • Lock-in period of 5 years.
  • TDS applicable if Form 15G/15H not submitted.
  • Simple interest paid monthly/quarterly or Cumulative interest paid on maturity.

Tax Saver Silver: ₹100/-

Tax Saver Gold: ₹1,000/-

5 years (lock-in period)

 

CUB NRE Fixed Deposit

  • Open by NRIs with NRE/FCNR funds.
  • Full repatriation of principal & interest.
  • No TDS on interest earned.
  • Loan against FD available (RBI guidelines apply).
  • Interest payable on a quarterly basis for Non-Cumulative deposits.
As per bank policy1 year to 10 years

CUB NRO Fixed Deposit

  • Open by NRIs with NRO/NRE/FCNR funds.
  • Transfer principal & interest outside India (up to USD 1 million/year).
  • TDS applicable on interest.
  • Loan against FD available.
  • Interest payable quarterly for Non-Cumulative deposits.
As per bank policy1 year to 10 years

CUB FCNR Fixed Deposit

  • Can be held in AUD, CAD, EUR, GBP, JPY, USD, SGD.
  • Fully repatriable.
  • No TDS on interest.
  • Loan against FD available (RBI guidelines apply).
  • Interest payable on a half-yearly basis for Non-Cumulative deposits.
As per bank policy

1 year to 5 years

 

Term wise City Union Bank FD Rates

Deposit Tenure

General Customers

Senior Citizens

Short-Term Deposits

7 days to 1 year

5.00% - 6.25% 

5.00 - 6.75%

Medium-Term Deposits

1 - 3 years

6.85% - 7.30%

7.35% - 7.80%

Long-Term Deposits

3 -10 years 

7.40% - 6.70%

7.20% - 7.90%

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

How to invest in City Union Bank FD?

City Union Bank FD account can be openedin various ways, like the City Union Banj Mobile App, City Union Bank Internet Banking, or by visiting your nearest City Union Bank.

City Union Bank Internet Banking

Step 1: Visit the City Union Bank website and log in to your account with your credentials.

Step 2: At the top of the page, select ‘Personal’, followed by ‘Deposits’.

Step 3: Choose the type of FD you wish to open, and a page with detailed information about the selected FD will be displayed. 

Step 5: Click on ‘Apply Now’.

Step 5: Fill in details like deposit amount, tenure, interest payout preferences, and maturity instructions.

Step 6: Review all the details carefully and proceed to click on ‘Submit’

Step 7: Once your FD is processed, you will receive a confirmation. 

City Union Bank Mobile Banking App.

Step 1: Download the City Union Bank Mobile Banking App.

Step 2: Log in to your Mobile Banking account with your credentials.

Step 3: Proceed to go to the ‘E-Deposits’ section.

Step 4: Choose the type of FD account you want to open.

Step 5: Fill in the required details, including deposit amount, tenure, maturity instructions, and interest payout preferences.

Step 6: Review and click ‘Submit’ to confirm your FD application.

Step 7: Once processed successfully, you will receive a confirmation notification. 

Visiting City Union Bank Branch

Step 1: Visit your nearest City Union Bank branch.

Step 2: Request for a FD account opening form from the bank representative.

Step 3: Fill out the application form with the required details, along with the necessary documents and deposit amount.

Step 5: The bank will then process your application. Once approved, you will receive an FD receipt as confirmation of your deposit. 

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.

City Union vs Other Banks' FD Rates

Bank Name

Regular Customers (% p.a.)

Senior Citizens (% p.a.)

HDFC Bank

3.00% – 7.35%

3.50% – 7.85%

Punjab National Bank

4.55% – 7.30%

5.05% – 7.80%

Axis Bank

3.00% – 7.20%

3.50% – 7.70%

City Union Bank

5.00% – 7.50%

5.00% – 8.00%

Canara Bank

4.00% – 7.25%

4.00% – 7.75%

Bank of Baroda

4.25% – 7.25%

4.75% – 7.75%

ICICI Bank

3.00% – 7.25%

3.50% – 7.80%

Citibank

2.10% – 7.77%

2.60% – 8.27%

State Bank of India

3.50% – 7.10%

4.00% – 7.60%

Indian Overseas Bank

4.00% – 7.30%

4.50% – 7.80%

IDBI Bank

3.00% – 7.00%

3.50% – 7.50%

Indian Bank

2.80% – 7.25%

3.30% – 7.75%

IDFC First Bank

3.00% – 7.75%

3.50% – 8.25%

Post Office FD

6.90% – 7.50%

6.90% – 7.50%

Kotak Bank

2.75% – 7.40%

3.25% – 7.90%

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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Frequently Asked Questions

What is the FD interest rate in City Union Bank?

City Union Bank provides FD interest rates from 5.00% to 7.50% per annum to the general public and from 5.00% to 8.00% per annum to senior citizens for tenures ranging from 7 days to 10 years where the deposit amounts are below Rs.1 crore.

Should I go through the KYC process to open an FD account with the bank?

Yes. KYC norms apply to all types of accounts you open with any bank. You need to provide government issued identity proof and address proof documents to complete your KYC process.

Is there an option for me to comply with the KYC norms without having to visit the bank?

Yes, the bank has launched a video KYC process for new customers who are willing to open an FD account with the bank. This method allows you to complete the KYC compliance from the convenience of your home.

I am an NRI. Can I still open an FD account with CUB?

Yes, you can open an FD account with CUB. However, the additional interest rate applicable to senior citizens will not apply to NRO accounts. Only the interest rates for general customers will be applicable.

What are the NRE deposit rates offered?

When it comes to NRE accounts, the interest rates applicable are provided in the table below. Note that the rates are effective from 1 September 2024.

TenureInterest Rate (% p.a.)
365 days up to 400 days7.00
401 days up to 3 years6.50
3 years up to 10 years6.25
Can I make a premature withdrawal from the NRE account?

You need to complete the minimum period of one year before you can make a premature withdrawal. If you withdraw the deposit after completing one year but before maturity, you will be charged a penalty as per the prevailing bank’s policy.

About the Author

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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