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Union Bank of India Recurring Deposits (RD) encourage you to develop a healthy saving habit. Not only do you save money but also earn interest on your deposits. With the scheme, you can save a designated amount every month and improve your saving habit. Continue reading to see what Union Bank of India’s recurring deposit schemes have to offer.
The interest rates in the table below are updated on 7 January 2021.
|Deposit Tenure||Interest Rates for Regular Customers (% p.a.)*||Interest Rates for Senior Citizen (% p.a.)*|
|180 days to 364 days||5.50||5.50|
|1 year 1 day to 443 days||5.75||5.75|
|445 days to 554 days||5.75||5.75|
|556 days to 2 years 12 months 31 days||5.75||5.75|
|3 years to 10 years||5.80||5.80|
*Interest rates are subject to change from time to time.
The maximum deposit amount permitted is 10 times the core amount or Rs.1 lakh, whichever is lower. After stepping up, you can also reduce the instalment amount at any time; but not less than the core amount.
The minimum monthly deposit can be Rs.100 and in the multiples of Rs.100 thereafter. The maximum core amount allowed is Rs.1 lakh. The deposit tenure can range from 6 months up to 60 months.
If the interest earned on your fixed deposit is more than Rs 40,000 during the financial year, the bank deducts tax at source at 10%. This rate has been reduced to 7.5% due to COVID-19 pandemic from May 2020 to March 2021. Further, the tax levied on the returns is dependent on the tax bracket you fall into irrespective of the interest rate or other factors.
Visit our free RD calculator page to know how much returns you can expect by investing in RD over some time.
You are not allowed to alter the RD tenure once selected. However, suppose you happen to discontinue paying instalments for a valid reason. In that case, you may convert the cumulative deposit account into a term deposit account before maturity provided that the term deposit tenure is longer than the remaining period of cumulative deposit account. In this case, you will have to bear the arrears of the monthly instalments and penalty for the delay in payment.
No. The monthly instalment amount cannot be altered once selected at the time of opening the account.
The interest will be compounded every quarter and will be credited to your account on a half-yearly basis. The interest will be paid to you at the time of maturity or one month after the last instalment is deposited, whichever is later.
Since the monthly instalment can vary from time to time, the interest will be calculated daily and credited to the account quarterly.
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