Union Bank of India Recurring Deposit (RD) Rates

Interest rates for the Recurring Deposit accounts are crucial in determining the return you would get from your monthly deposits. Thus, Union Bank of India RD interest rates are some of the most competitive rates in the market, enabling you to turn your investment into a higher sum within a selected tenure.

Nevertheless, you must note that the interest rates for Recurring Deposit accounts change every year and are revised by the bank itself. Hence, read the article till the end to learn about the interest rates of the Union Bank of India RD accounts.

Union Bank Recurring Deposit Scheme Highlights For 2024

The following table showcases a quick highlight of the Union Bank of India Recurring Deposit scheme:

Union Bank RD Interest Rate 2024

Before you opt for your Recurring Deposit accounts in the Union Bank of India, make sure to inquire about the applicable interest rates for the specified year. Thus, refer to the following table that features the Union Bank of India RD interest rates 2024 for deposits less than Rs.3 crore:

Union Bank RD Interest Rate for Senior Citizens

The following table provides the Union Bank of India RD interest rates for senior citizens for deposits less than Rs.3 crore:

Types of Union Bank RD Accounts

Union Bank of India offers two major types of recurring deposit accounts for the general public and senior citizens, which are as follows:

Union Monthly Plus Recurring Deposit Scheme

The Monthly Plus Recurring Deposit Scheme is a flexible deposit scheme where you can deposit amounts at your convenience. You must declare the initial deposit amount at the time of your RD account issuance, which is considered the core amount. You are allowed to increase the monthly amount up to 10 times.

You can later also reduce the existing monthly amount. However, it should never be less than the core amount. You are also allowed to deposit more than once in a month, within a maximum number of 10 deposits monthly. The features of this account are as follows:

• Minimum Deposit: Rs.100 and in multiples of 100
• Maximum Deposit: Rs.1 lakh per month or 10 times the core amount
• Interest Calculation: The interest is credited to the RD account at quarterly intervals.
• Overdue Instalments: No penalty is charged for missed or delayed monthly instalments.
• Nomination Facility: You can choose any of your family members as the nominee of your RD account.
• Loan Facility: You can opt for loans from your deposit amount as per the norms of the bank.
• Premature Closure of the RD Account: Premature closure is allowed under this scheme as per the norms of the bank.

Union Bank of India Cumulative Deposit Scheme

The Cumulative Deposit Scheme enables you to make monthly deposits with lower amounts. Here are the features of this account:

• Minimum Deposit: Rs.50
• Interest Calculation: The interest is compounded quarterly and credited to the RD accounts half-yearly. The bank shall pay the accrued interest at the time of maturity along with the principal amount or after one month of the last instalment.
• Overdue Instalments: No penalty is charged for missed or delayed monthly instalments.
• Premature Closure of the RD Account: Under this scheme, premature closure is allowed without any penalty charges. The depositor shall receive the interest amount up to the period until which the RD account was active at the bank.

How To Calculate Union Bank RD Interest Rate?

The formula used in the process of calculating the returns of a recurring deposit account is one of the crucial things to consider, as interest rates play a pivotal role. The interest rates of the recurring deposits are calculated quarterly and are compounded accordingly, enabling you to earn interest on good returns.

The following is the formula used for RD interest calculations:

A = P x (1 + r/n) ^ (n x t)

Here:

• A = Maturity Amount
• P = Principal Amount
• r = Interest rate
• n = Number of Times Interest is Compounded
• t = Time Period

Example: Riya opens an RD account in the Union Bank of India with a monthly deposit of Rs.1,000 for 24 months at an interest rate of 6.60%.

As per the formula, 

• P = Rs.1,000 
• n = 4 
• r = 0.066
• t = 24

A = 1000 x (1 + 0.066/4) ^ (4 x 24)

A = Rs.25,712

Therefore, from the above calculation, it is understood that Riya will get a return of Rs.25,712 after completing the tenure of 24 months for a monthly deposit of Rs.1,000. The interest on the deposit is Rs.1,712. 

Use our Union Bank RD Calculator to easily calculate your RD interest and maturity amount in seconds.

Features of Union Bank RD Interest Rates

Here is a brief overview of some of the major features of the Union Bank of India RD interest rates:

• Initial Deposit

The initial deposit starts at Rs.100 in the Union Bank of India. You can also also increase the deposit amount by informing the bank.

• Interest Rates

Union Bank of India recurring deposit interest rates are highly competitive which can be as high as 7.30% for the general public and 7.80% for senior citizens. Even though the interest rates are subject to change, these give you attractive returns after the completion of your predetermined tenure.

• Tenure

Union Bank of India allows individuals to select tenure at their convenience. Hence, they offer tenures that range from 6 months to 10 years. However, you must remember that the Union Bank of India RD interest rates vary according to the tenure you choose.

• Nominee Selection

Union Bank of India allows you to choose any of your family members as the nominee for your RD account. You need to choose your nominee at the time of account issuance.

• Penalty

Union Bank of India does not charge any penalty for premature withdrawal of the deposits, defaults or delays in monthly instalments for recurring deposits.

Eligibility For Opening Union Bank RD Account

The following are eligible to open a recurring deposit account at the Union Bank of India:

• Individuals (Single/ Jointly with another person)
• Hindu Undivided Families
• Persons with special needs
• Corporate Bodies
• Partnership firms 
• Company
• Clubs
• Minors with their legal guardians

Documents Required For Opening Union Bank RD Account

The Union Bank of India requires a few sets of documents to authenticate your identity and address details. Thus, along with your duly filled Union Bank of India RD account application form, you need to submit the following documents whenever you opt to open Union Bank of India recurring deposit accounts:

Address Proof

• Electricity bill
• Passport
• Telephone bill
• Bank statements with a cheque
• ID cards or certificates issued from the post office

Identity Proof

• Passport
• Government ID card
• PAN card
• Driving licence
• Ration card
• Senior citizen ID card

Please note that you may need to submit a few other documents based on the type of RD account you wish to open at the Union Bank of India. Thus, it is advisable to inquire about the required set of documents from the bank beforehand.

How To Open Union Bank RD Account?

The Union Bank of India allows you to open a recurring deposit account with them through both online and offline modes. Given below are two processes through which you can opt for an RD account at the UBI at your convenience:

Online Application

1. Log in with your credentials to the Union Bank of India Netbanking portal.
2. Navigate to the option to open a Recurring Deposit account.
3. Enter the information as requested, including the instalment amount, account number, tenure, etc.
4. Choose a nominee after checking the applicable interest rate.
5. Read the terms and conditions and tick the checkbox.
6. Click on the ‘Submit’ option to complete your RD account application process.

Once you receive a confirmation message on your registered mobile number and email ID after the completion of your application process, you shall, your specified instalment amount will be debited accordingly.

Offline Application

1. Visit your nearest Union Bank of India branch with your savings account details.
2. Navigate to the necessary authority member and ask for an RD account application form.
3. Fill in the application form by providing all the essential details including deposit tenure, instalment amount, payment mode, nominee etc.
4. Make your first deposit in cash or by using a cheque.
5. Submit the application form along with copies of the required documents to the branch officials.

Once you complete the process, the bank shall process your RD account application within a stipulated time.

How To Close Union Bank RD Account?

In case you wish to close your Recurring Deposit account at the Union Bank of India, you can refer to the following process:

1. Visit your nearest Union Bank of India branch with your RD account details.
2. Navigate to the necessary authority member and ask for an RD account closure form.
3. Fill in the required details. Please note that if the RD account has a joint holder, the closure accounts will need their signature and consent as well.
4. Attach the self-attested copies of the required documents with the closure form. These include KYC, PAN card, address proof, identity proof, RD account receipt, RD certificate, etc.
5. Submit the form to the branch officials.

Benefits of Union Bank RD Account

Here is an overview of the major benefits you can get from a Union Bank Recurring Deposit account:

• Union Bank of India allows you to increase your deposits to a higher sum within your predetermined tenure.
• Union Bank of India offers flexibility in selecting the tenure for your RD accounts, which range from 6 months to 10 years.
• Union Bank of India offers two types of recurring deposit schemes, from which you can choose the one that best suits your financial stability and preferences.
• You can get good returns at competitive interest rates, which can go as high as 7.30% for the general public.
• The option for opting for a loan from your deposit amount is also available for Union Bank of India Recurring Deposits.
• Union Bank of India Recurring Deposit accounts offer higher interest rates for senior citizens which can go as high as 7.80%. 

Union Bank RD Premature Withdrawal Rules

The premature withdrawal rules of the Union Bank of India are different for the two schemes offered at the bank. For the Monthly Plus Recurring Deposit Scheme, premature closure is allowed under this scheme without any penalty charges. However, the depositor shall receive the interest amount up to the period till which the RD account was active at the bank.

On the other hand, under the Cumulative Deposit Scheme, if the RD account is closed within a month of the issuance, the bank can decide to not pay any interest to the depositor. In any case, otherwise, no penalty is charged for the premature closure of your RD account and you shall receive the interest till the time your RD account is active at the bank.

Recurring Deposit accounts at the Union Bank of India are some of the most sought-after ones considering the higher interest rates they offer. These are beneficial in increasing your monthly deposits to a higher sum to fulfil your financial aspirations in the long run. Therefore, make sure to analyse your financial needs and objectives before you opt for an RD account, keeping in mind that the tenure you choose shall impact the Union Bank of India RD interest rates

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