A recurring deposit is a savings scheme under which you can deposit a fixed amount on a monthly basis over a period of time. Your savings will earn interest and your total savings will be paid back to you at the end of the deposit tenure. Union Bank of India offers two RD schemes: Cumulative Deposit and Union Monthly Plus.
- Union Bank of India Cumulative DepositThis deposit works like a regular RD scheme. Anyone can open this deposit for as low as Rs. 50 per month. The tenure period range between 6 months to 120 months, in multiples of 1 month. Once you have selected your installment amount, it cannot be changed till the end of the deposit. Interest is calculated every quarter. The deposit will mature one month after the last installment and be paid out. Customers have the option to convert the RD into a fixed deposit on the condition that the FD tenure is longer than the remainder of the RD.
- Union Bank of India Union Monthly PlusThis scheme is opened to individuals, HUFs, Trusts and institutions. Corporates, proprietors and partnerships can also open this RD scheme. This scheme runs on the basis of a core amount that is selected at the beginning which can range between Rs. 100 and Rs. 1 lakh. The deposit period ranges between 6 months and 60 months. With this scheme, you have the option to step up your core deposit amount up to 10 times more. If your core amount is Rs. 1,000, you can increase the amount as per your convenience up to Rs. 10,000. After stepping up the amount, if you want to reduce it back to the initial core amount, you can step down. In addition to these benefits, there is no premature closure penalties.
Union Bank of India Short Term Recurring Deposit Interest Rates
Short term RD accounts comprise of those tenures that range between 6 months to 1 year. Your interest rate depends on the size of your deposit. Deposits of less than Rs. 1 crore earn interest of 7% to 7.75% per annum. Deposits of Rs. 1 crore to Rs. 10 crores earn between 6.5% to 7.65% per annum.
Union Bank of India Medium and Long-Term Recurring Deposit Interest Rates
Medium-term deposits range between 1 year to 5 years attracting interest of 7.5% to 7.7% per annum on deposits that are less than Rs.1 crore. Deposits that are between Rs. 1 crore and Rs. 10 crores earn interest between 7.10% and 7.25% per annum. Long-term deposits range between 5 years and 10 years. Deposits that are less than Rs. 1 crore will earn 7.5% per annum. Deposits above Rs. 1 crore to Rs. 10 crores earn 7% per annum.
Union Bank of India Senior Citizen Recurring Deposit Interest Rates
Any person who has attained the age of 60 will be considered a senior citizen and is eligible for a higher interest rate. For deposits that are 1 year and above, the rate of interest offered will be 0.5% per annum over the regular rate. This offer is not extended to NRI senior citizen accounts. Senior citizens can also open joint accounts with a person below the age of 60 and avail of the special scheme, but the senior citizen will be named as the first application.
