Union Bank FD Interest Rates 2026

Guaranteed Returns Higher Than FDs

Fixed Deposits have the advantage of assured returns, whereas the guaranteed returns plans have higher interest rates, tax benefits, and insurance cover. They are most suitable when the aim is long-term, and one wants to make use of capital safety, and at the same time, enjoy higher growth than in the case of an FD.

Union Bank of India FD Updates

The Union Bank of India has changed its on deposits less than 3 crores, effective from July 07, 2025. The bank has, however, decided to maintain its interest rates on savings accounts. 

Comparing FDs with Other Options 

Fixed Deposits (FDs) are a better investment choice as they are safer, and guaranteed returns are assured, and they do not depend on market fluctuations. Your funds are safe, and you are aware of the amount you will get at the end of the period.

What is a Union Bank of India Fixed Deposit?

Union Bank Fixed Deposit is a savings product where a fixed amount is invested for a specified period to earn assured FD interest rates. The minimum deposit amount for Union Bank FD is ₹1,000. Available FD types include Regular Term Deposit, Union Tax Saver Deposit (5-year lock-in), Union Monthly Plus (monthly contributions), and Union Flexi Deposit (with sweep-in/out facility).

Union Bank of India Fixed Deposit: Key Highlights 

Union Bank of India Interest Rates

The tables below highlight the applicable Union Bank FD interest rates for different tenure slabs across various deposit amounts.

Revised rates below ₹3 Crore

Note: Union Bank FD interest rates w.e.f. December 05, 2025. Super senior citizens receive an additional 0.25% interest over and above the senior citizen rates. 

Revised rates above ₹3 Crore to ₹10 Crore 

Note: Union Bank FD interest rates w.e.f. January 01, 2026.Super senior citizens receive an additional 0.25% interest over the senior citizen rates.

Types of Union Bank FD Schemes

1. Union Fixed Deposit Receipt (FDR) 

   Against any uncertainty in interest rates, Fixed Deposit Receipt allows you to protect and receive a steady and consistent interest. It can help you ensure that your idle money continues to increase steadily, becoming a stable source of extra income.

   • Minimum Tenure - 6 months
   • Maximum Tenure - 120 months 
   • Deposit Amount - Minimum Rs. 1000 and Maximum - No limit
   • Premature Closure - Allowed 
   • Interest Rates - An Attractive rate of interest

2. Union Short Deposit Receipt (SDR) 

   Interested in a deposit scheme that will allow you to save over a shorter term and get higher interest rates than a normal savings account? SDR by Union Bank is the best option for short-term financial objectives; it has fixed returns and short tenures of a few days to a few months.

   • Loans and Nomination facility - Available 
   • Tenure - 7 days to 179 days 
   • Minimum Deposit Amount - Rs 1000 
   • Maximum Deposit Amount - No limit 
   • Premature Closure - Allowed 

3. Union Deposit Re-investment Certificate(DRIC) 

   Union Bank of India DRIC is an intelligent method of increasing your savings with a quarterly compounding interest. This plan also enables you to accumulate a higher amount in the long run, as interest earned is reinvested. 

   • Tenure - 6 months to 120 months
   • Minimum Deposit Amount -  Rs 1,000
   • Maximum Deposit Amount - NIL
   • Premature Closure - Allowed 
   • Nomination Facility - Allowed 

4. Union Bank Easy Tax Saver Deposit 

   The Union Bank Easy Tax Saver Deposit Scheme is the best way to make tax planning more convenient and flexible. This special account allows you to invest in Tax Saver Fixed Deposits in monthly instalments (via SIP), a lump sum, or whenever you have extra funds, and thus saves you tax.

   • Nomination Facility - Available 
   • Passbook Facility - Will be issued for tracking
   • Tax Facility - Allowed, IT exemption under Section 80C
   • Minimum Amount Deposit - Rs 1000
   • Maximum Amount Deposit - 1,50,000
   • Lock-in Period - 5 years 
   • Loans - Not Allowed 

5. Union Tax Saver 

   Tax Saver Fixed Deposit by Union Bank is an excellent method of cutting down your tax under Section 80C of the Income Tax Act. It provides guaranteed returns with tax advantages; thus, it is suitable for those who want to increase savings while saving on taxes.

   • Lock-in Period - 5 years 
   • Nomination Facility - Yes, Available 
   • Minimum Deposit Amount - Rs 1,000
   • Maximum Deposit Amount - Rs 1,50,000
   • Premature Closure - Allowed, if the primary holder dies 
   • Interest Payment - Depends upon the scheme 

6. Union Non Callable Term Deposits Scheme 

   Union Bank of India provides the Non-Callable Term Deposit Scheme, which offers a higher interest rate on individual deposits of 3 crore and above as compared to that of large-value deposits. This plan is suitable for people who want to get higher returns but with no facility to withdraw.

   • Tenure - 61 days to 3 years
   • Auto Renewal Facility - Not Available 
   • Minimum Deposit Amount -  Rs 3 crore and above
   • Maximum Deposit Amount - No Limit 
   • Loan Overdraft Facility - Available on deposits

Key Benefits of Union Bank Fixed Deposits

Union Bank of India offers a range of fixed deposit features that cater to various savings and liquidity needs. Below are the major advantages:

• Higher Rates for Senior Citizens: Senior citizens earn an additional 0.50% and super senior citizens up to 0.75% (under the super-senior citizen category) with interest on most Union Bank FD schemes over and above the applicable card rate. 
• Loan Against FD: Union Bank offers loans up to 90% of the FD amount, helping you avoid breaking the deposit during emergencies. The interest on such loans is usually 1% to 2% higher than the FD rate.
• Premature Withdrawal: Premature closure is permitted on most FDs except the Tax Saver FD. A penalty of 1% on the interest rate may apply if the deposit is withdrawn before maturity.
• Sweep-in/Sweep-out facility: The bank offers a Savings Flexi Deposit Account with auto sweep features. If your savings account balance exceeds ₹50,000, the surplus is transferred into a fixed deposit in multiples of ₹10,000. When needed, money is swept back in multiples of ₹5,000 to maintain liquidity. 
• Auto Renewal Facility - With easy returns on fixed deposits by Union Bank of India, you can also enjoy the facility of auto-renewal with no formalities. 
• Fast and Easy Withdrawal - Fixed Deposits provide liquidity in the form of premature withdrawal or loans against deposit easily and quickly. When there are emergencies, you are able to get your money without having to break the whole FD or suffer serious penalties. 

How to Open a Union Bank of India FD

Follow these step-by-step instructions to open a Fixed Deposit with Union Bank of India through online or offline channels. The process is easy whether you’re a new or existing customer.

Online Method

Follow these few steps to open a Union Bank of India FD account via netbanking or through the Union Bank of India.

•  Start Online - Visit the Union Bank NetBanking portal or open the Union Bank app.
• Login - Log in using your Union Bank credentials.
•  Select Fixed Deposit - Choose the ‘Fixed Deposit’ option from the menu.
•  Enter Details - Fill in the deposit amount, tenure, nominee details, and maturity instructions.
•  Submit - Click on ‘Submit’ to confirm the FD booking.
• Confirmation Message - A confirmation message will appear on successful completion.

Offline Method

This offline method of opening your Union Bank of India FD account is basic and for both new and existing customers:

• Visit the Branch - Go to the nearest Union Bank of India branch.
• Ask for the Form - Request the Fixed Deposit application form.
• Complete the Form - Fill in your personal and deposit details.
• Complete KYC Procedure - Attach your KYC documents (for new customers).
• Make the payment - Complete it via cash, cheque, or from your Union Bank account.
• Final Submission - Submit the form and collect your Fixed Deposit Receipt (FDR).

Eligibility For Opening a Union Bank of India FD

Union Bank fixed deposits are open to a wide range of customers, including :

• Resident individuals of India (single/joint accounts)
• Minors (under guardianship of an adult)
• Hindu Undivided Families (HUFs)
• Societies, clubs, and associations
• Government agencies and institutions
• Non-Resident Indians (NRIs)
• Public and private limited companies

Key Takeaways

Union Bank Fixed Deposits offer interest across various tenures, helping individuals plan their savings according to short- or long-term goals. You can open an FD online via internet banking or mobile app, or offline at any branch. Facilities like loans against FD, flexible tenure options, and higher rates for senior citizens add to the overall utility. Before investing, comparing FD interest rates from other banks is recommended.