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.
The following table showcases a quick highlight of the Union Bank of India Recurring Deposit scheme:
Tenure | 6 months to 10 years |
Senior Citizen Interest Rates | 4.00% to 7.80% |
General Public Interest Rates | 3.50% to 7.30% |
Highest Rates for Public | 7.30% |
Minimum Deposit Amount | Rs.100 |
Highest Rates for Senior Citizens | 7.80% |
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:
Tenure | Interest Rates for the General Public (per annum) |
7 to 14 days | 3.50% |
15 to 30 days | 3.50% |
31 to 45 days | 3.50% |
46 to 90 days | 4.50% |
91 to 120 days | 4.80% |
121 to 180 days | 5.00% |
181 to 332 days | 6.35% |
333 days | 7.00% |
334 to less than 1 year | 6.35% |
1 year | 6.80% |
More than 1 year to 398 days | 6.80% |
399 days | 7.00% |
400 days to 455 days | 6.60% |
456 days | 7.30% |
457 days to 2 years | 6.60% |
More than 2 years to 996 days | 6.60% |
997 days | 6.40% |
998 days to less than 3 years | 6.60% |
3 years | 6.70% |
3 years to 5 years | 6.50% |
More than 5 years to 10 years | 6.50% |
The following table provides the Union Bank of India RD interest rates for senior citizens for deposits less than Rs.3 crore:
Tenure | Interest Rates for Senior Citizens (per annum) |
7 to 14 days | 4.00% |
15 to 30 days | 4.00% |
31 to 45 days | 4.00% |
46 to 90 days | 5.00% |
91 to 120 days | 5.30%. |
121 to 180 days | 5.50% |
181 to 332 days | 6.85% |
333 days | 7.50% |
334 to less than 1 year | 6.85% |
1 year | 7.30% |
More than 1 year to 398 days | 7.30% |
399 days | 7.50% |
400 days to 455 days | 7.10% |
456 days | 7.80% |
457 days to 2 years | 7.10% |
More than 2 years to 996 days | 7.10% |
997 days | 6.90% |
998 days to less than 3 years | 7.10% |
3 years | 7.20% |
3 years to 5 years | 7.00% |
More than 5 years to 10 years | 7.00% |
Union Bank of India offers two major types of recurring deposit accounts for the general public and senior citizens, which are as follows:
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:
The Cumulative Deposit Scheme enables you to make monthly deposits with lower amounts. Here are the features of this account:
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:
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,
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.
Here is a brief overview of some of the major features of the Union Bank of India RD interest rates:
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.
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.
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.
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.
Union Bank of India does not charge any penalty for premature withdrawal of the deposits, defaults or delays in monthly instalments for recurring deposits.
The following are eligible to open a recurring deposit account at the Union Bank of India:
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
Identity Proof
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.
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
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
Once you complete the process, the bank shall process your RD account application within a stipulated time.
In case you wish to close your Recurring Deposit account at the Union Bank of India, you can refer to the following process:
Here is an overview of the major benefits you can get from a Union Bank Recurring Deposit account:
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