Corporation Bank Fixed Deposit (FD) Rates

Corporation Bank and Andhra Bank have been merged under Union Bank of India. You can visit the Union Bank of India FD Interest Rates page for more details or read the article below to know all the information about fixed/term deposit schemes offered by Corporation Bank, now merged with the Union Bank of India.

Latest Updates

RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.

Fixed Deposit Interest Rates 2024 of Corporation Bank

Below table provides the interest rates of Corporation Bank, now merged with Union Bank of India, applicable for a deposit amount up to Rs.3 crore and are effective from 2 August 2024.

*Interest rates are subject to change.

Different Types of Corporation Bank FD Schemes

Fixed Deposit Receipt (FDR)

This account works similar to a regular FD account with the minimum deposit amount being Rs.1,000. However, in the case of depositing subsidies received from the government-sponsored schemes, margin money, earnest money, and court attached/ordered deposits, minimum deposit criteria is not applicable. The deposit tenure can be from six months up to 120 months.

Short Deposit Receipt (SDR)

The minimum deposit amount for the scheme is Rs.1,000. The tenure can range from 7 days to 179 days. The interest is calculated in quarterly intervals and paid half-yearly, i.e. in March and September depending on the date of maturity.

Money Flex Term Deposit (MFTD)

The Money Flex Term Deposit scheme offers higher returns along with the flexibility of withdrawing a part of the deposited sum at any time before maturity. Single and joint accounts can be opened. The minimum period is six months, and the maximum period is 10 years. A minimum deposit of Rs.25,000 is necessary to open the account, and the maximum deposit amount is Rs.2 crore.

Cumulative Deposit Scheme

Cumulative Deposit Scheme encourages small investors to deposit in easy monthly installments over a fixed period. It is ideally suited for the lower, lower middle, middle, upper middle and salaried sectors. The minimum period is six months, and the maximum period is 120 months. The minimum monthly installment is Rs.50. 

Deposit Re-Investment Certificate (DRIC)

The interest on the amount deposited in this scheme gets compounded quarterly and will be paid along with the principal. The minimum deposit to open this account is Rs.1,000. There is no upper limit on the deposit money. The minimum period is six months, and the maximum period is 120 months.

Monthly Income Scheme (MIS)

The scheme is suitable for those who wish to get regular fixed income with guaranteed returns at a specified rate of interest every month. The minimum period is 12 months and can go up to 120 months. The minimum deposit amount is Rs.1,000.

Union Sumvridhi (333 Days)

The Union Sumvridhi scheme provides a higher interest rate for a fixed deposit period. The tenure is fixed at 333 days. A minimum deposit of Rs.1,000 is necessary to open the account, and the maximum deposit amount is Rs.3 crore.

Non-Callable Term Deposits Scheme

The scheme is available for deposits above Rs.2 crore (single deposits only). Deposit Re-Investment Certificate, Fixed Deposit Receipt and Short Deposit Receipts are the types of deposits available under the scheme. The deposit tenure available here is from 61 days up to three years. Premature withdrawal is only allowed in the case of specified extraordinary situations.

Motor Accident Claims Annuity Deposit (MACAD)

This scheme is meant for depositing a one-time lump sum in the account as prescribed by the court or tribunal. The deposit sum will be paid out to the individual in equated monthly instalments (EMI), which consists of a part of the principal and interest. The tenure is 36 to 120 months. The minimum monthly annuity associated is Rs.1,000 for the relevant period.

Corporation Bank FD Special Features and Benefits

• The minimum deposit period is seven days for regular FD schemes.
• The minimum deposit amount starts at Rs.1000 and varies based on the scheme selected.
• Premature withdrawal is allowed subject to the scheme chosen and other conditions.
• Senior citizens get 0.5% higher rates as compared to regular customers.
• Nomination facility is available.

Basic Eligibility Criteria for Corporation Bank FD

• Individuals
• Two or more individuals forming joint accounts
• Hindu Undivided Families (HUFs)
• Clubs
• Associations
• Trusts
• Partnership firms
• Limited companies and partnership firms
• Municipalities and panchayats

Documents Required to Open FD in Corporation Bank

• Proof of Identity
  • Passport
  • PAN card
  • Voter ID
  • Driver’s license
  • Aadhaar card
• Proof of Address
  • Passport
  • Aadhaar card
  • Bank statement with a cheque
• Proof of Date of Birth
  • Service discharge certificate
  • PAN card
  • Aadhaar card
  • Voter ID

Tax Benefits on Corporation Bank Fixed Deposit

Corporation Bank, now merged with the Union Bank of India, offers ‘Easy Tax Saver Deposit Scheme’ that provides a tax benefit to taxpayers. Individuals and HUFs (IT assessees having PAN) are eligible to get the benefits of the scheme.

The deposit amount for this scheme has an upper limit of Rs.1.5 lakh per financial year. The lock-in period for this account is five years. Depositing money in this scheme will allow you to claim income tax deduction under Section 80C of the Income Tax Act, 1961.

If the interest earned on your fixed deposit is more than Rs 40,000 during the financial year, the bank deducts tax at the source @ 10%. Further, the tax levied on the returns is dependent on the tax bracket you fall into irrespective of the interest rate or other factors.

FD Interest Rate Calculator

Check the returns you may receive from Corporation Bank FD schemes with our easy-to-use FD calculator page.