Union Tax Saver|Union Bank of India Fixed Deposit Rates-– Interest Rate, Calculator & Benefits

Fixed Deposit Details

Bank Name

Union Bank of India

Eligibility

All individuals and HUF having PAN are eligible to invest in this product. Firms, Companies, Trust, Societies, Clubs, Institutions, Corporates etc., are not allowed to invest in this product. The deposit can be of Single holder type or Joint holder type

Interest Rate

6.50% per annum.

Tenure

5 to 10 years.

Fixed Deposit Type

Tax Saver

Union Tax Saver

Tax Benefits

Yes, tax exemption under Section 80C of the Income Tax Act, 1961.

Credit Ratings

ICRA Limited A1+

Interest Payment Frequency

Monthly, quarterly, half-yearly, at maturity. Typically for fixed deposits having interest payment at maturity, compound interest is applicable and for fixed deposits having monthly interest payment, simple interest is applicable. Typically fixed deposits having a tenure of one year or less, simple interest is applicable. It is best to consult the bank officials before you book a fixed deposit.

Cummulative/Non-Cummulative

Both

Features

• Flexible interest payout options.
• Tenure of 5 to 10 years.
• The lock-in period is 5 years.
• The term deposit can be pledged to secure a loan or as security to any other asset, only after the lock-in period of 5 years.
• Minimum deposit of Rs.1000.
• Maximum deposit of Rs.1,50,000 in a financial year.

Minimum Investment Amount

5,000

Features & Benefits

Pros

• Tax exemption under Section 80C of the Income Tax Act, 1961.
• Flexible interest payout options.

Cons

• The maximum deposit amount in a financial year is Rs 1,50,000 for availing tax benefits.
• Lock-in period of 5 years.

Pros & Cons

How to Open?

1. Visit a Union Bank of India Branch: Locate a branch near you and visit during their operating hours.

2. Gather Required Documents: Prepare the following documents:

• Proof of Identity (Aadhaar card, passport, driving license, voter ID)
• Proof of Address (Aadhaar card, passport, driving license, utility bill)
• PAN card (Permanent Account Number)
• Passport-sized photographs

3. Fill out the FD Application Form: Obtain an FD application form from the bank. Fill in the required details accurately, including:

• Your personal information
• Deposit amount
• Interest payout frequency (monthly, quarterly, half-yearly, or annually)
• Maturity period
• Nomination details (optional)

4. Submit the Application and Documents: Hand over the completed application form and required documents to the bank official.

5. Make the Deposit: Pay the deposit amount in cash, cheque, or demand draft.

6. Receive the FD Receipt: Once the deposit is confirmed, you will receive an FD receipt as proof of your investment.

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