Union Bank of India Fixed Deposit Interest Rates 2025 - Latest UBI FD Rates

A Union Bank FD lets you invest a lump sum for a fixed period and earn a guaranteed return at a set interest rate. There's no single FD rate for everyone, Union Bank of India FD rates depend on:

1. Tenure

   Longer tenures usually offer better yields, but UBI's peak slabs can appear at select mid-tenures like 400 days.

2. Deposit size

   Retail deposits (<₹3 crore) and bulk deposits (≥₹3 crore) follow different schedules.

3. Customer category

   Seniors get preferential pricing (+0.50%), and super-seniors get (+0.75%).

4. Special schemes

   Limited-period tenors (333/444/997 days) may carry separate rates.

Union Bank fixed deposits combine safety with flexibility:

• Guaranteed, risk-free returns: interest rate stays locked for the chosen tenure.
• Wide tenure range: 7 days to 10 years (120 months).
• Minimum deposit amount: typically ₹1,000.
• Premature withdrawal / closure: allowed on callable FDs with a small penalty.
• Loan/Overdraft against FD: liquidity up to ~90% without breaking the FD.
• Nomination facility: easy transfer to nominee in case of emergency.
• Auto-renewal: continue earning after maturity if you opt in.

These features make UBI FDs suitable for goal-based saving, emergency parking, and retirement income planning.

1. Regular / Domestic Fixed Deposit

The standard FD product with:

• cumulative and non-cumulative options
• flexible tenures
• premature withdrawal facility (callable).

2. Senior Citizen FD

Resident seniors (60+) earn higher slabs across most tenures:

• +0.50% over regular FD rates
• Super-seniors (80+): +0.75%

3. Union Bank Tax Saver FD (80C)

UBI's Easy Tax Saver Deposit Scheme qualifies under Section 80C:

• Lock-in: 5 years
• Tax benefit: eligible up to ₹1.5 lakh per FY
• Rate: aligned to regular 5-year slabs; tax-saver buckets may differ.

4. NRE / NRO Fixed Deposits (NRIs)

NRIs can open:

• NRE FD: repatriable, interest generally tax-free in India (subject to rules)
• NRO FD: for India-sourced income, taxable in India

Recent UBI NRI slabs range around 6.30%–6.60% p.a. depending on tenure (Aug 2025). Senior-citizen uplifts usually don’t apply to NRE/NRO deposits.

Union Bank gives you flexibility in how you receive interest.

Cumulative FD (Best for Growth)

• Interest is compounded
• Maturity = principal + compounded interest
• Ideal for wealth accumulation.

Non-Cumulative FD (Best for Regular Income)

Interest payout frequency options:

• Monthly
• Quarterly
• Half-yearly
• Yearly

Great for retirees wanting predictable cash flow.

For Indian Residents

To open a Union Bank FD, you typically need:

• PAN card (mandatory for most deposits)
• Aadhaar / Passport / Voter ID / Driving License (identity proof)
• Address proof if not covered by Aadhaar
• Recent passport-size photograph (branch route)

For NRIs (NRE/NRO/FCNR Deposits)

NRIs generally need:

• Valid passport and visa / residence permit
• Overseas address proof
• Proof of NRI status (employment/student/resident papers)
• PAN (recommended for taxation/compliance in India)

Exact KYC may vary by branch or country, but these are standard across Indian banks.

FD interest is taxable as "Income from Other Sources."

TDS thresholds

• Regular citizens: TDS applies if interest exceeds ₹40,000 in a financial year
• Senior citizens: threshold ₹50,000

Avoiding TDS (if eligible)

Submit:

• Form 15G (regular citizens)
• Form 15H (senior citizens)

Even if TDS is deducted, you must declare total FD interest in your ITR and claim refunds if applicable.

UBI allows premature closure on most callable FDs:

• Interest recalculated at the applicable slab for the actual tenure held
• Penalty may be charged
• Tax saver FDs do not allow early closure due to lock-in.

Instead of breaking your FD, UBI lets you take a loan/OD:

• Limit: usually up to ~90% of deposit
• Interest: FD rate + small spread
• FD continues earning while you get liquidity – useful for emergencies.

1. Net Banking

• Login → Deposits → Open FD → select tenure & amount → confirm.

2. Mobile Banking

• Deposits / Term Deposit → enter details → book FD.

3. Branch Visit

• Fill FD form → submit KYC → deposit amount → collect receipt.

In 2025, Union Bank of India fixed deposit rates remain competitive, especially for mid-tenures like 1 year–400 days and for resident senior citizens. To maximize returns, compare slabs carefully, watch for special-tenor schemes, pick a payout option that suits your cash-flow needs, and use an FD calculator to lock a tenure aligned with your goals.