Union Bank Deposit Re-Investment Certificate
The Union Bank provides a fixed deposit scheme called the Deposit Re-Investment Certificate, where individuals can invest a lump sum.
The interest that is earned compounded on a quarterly basis and is paid with the principal amount at the time of maturity.
Eligibility Criteria for applying for Union Bank Deposit Re-Investment Certificate
Anyone who would like to avail should meet the below mentioned criteria.
- The Deposit Re-Investment Certificate can either be opened single account or a joint account by individuals.
- The scheme can also be opened by organisations such as small firms, charitable institutions, recreational clubs, Hindu Undivided Families, trusts of religious nature, panchayats, etc.
- The scheme is available even to illiterate, blind and differently abled individuals
- Minors also are allowed to have this scheme, under the provision of a guardian.
Features of Union Bank Deposit Re-Investment Certificate
Account Type | Joint/Single |
Amount |
|
Rate of Interest | 6.35% p.a. to 7.25% p.a. |
TDS | The bank will issue a TDS certificate for the tax deducted |
Loan against Union Bank Deposit Re-Investment Certificate | Loans can be availed against the amount that is available in the account. |
Nomination (if any) | Nominees can be added as per the guidelines. |
Auto Renewals | Auto renewals are allowed for the same period as the initial one. The rate of interest will be the same as the one that was provided at the time of maturity. |
Period of Deposit |
|
Union Bank Deposit Re-Investment Certificate Interest Rates
All interest rates mentioned here are for the amount of less than Rs.2 crore:
Tenure | General Public FD interest rate (per annum) |
181 days to less than 1 year | 6.35% |
1 year | 6.80% |
>1 year to 398 Days | 6.80% |
399 Days | 7.25% |
400 Days to 2 years | 6.60% |
> 2 years to less than 3 years | 6.60% |
3 years | 6.70% |
> 3 Year to 5 years | 6.50% |
>5 Years to 10 Years | 6.50% |
Note: The interest rate mentioned in the table is effective from 2 August 2024.
FAQs on Union Bank Deposit Re-Investment Certificate
- What is the minimum amount required to open a Deposit Re-Investment Certificate?
The minimum deposit that must be made is Rs.1,000.
- What benefits does the Deposit Re-Investment Certificate provide to a senior citizen?
A senior citizen applicant will be offered at 0.50% additional interest over and above the interest rate provided for the term. This is on basis of the deposit period being over 1 year.
- Is there a nominee permitted under this scheme?
Yes, nominee is permitted under the Union Bank Deposit Re-Investment Certificate.
- What are the documents one should submit to open an account under this scheme?
The documents required for this scheme include an introduction of the account holder by an individual acceptable to the bank, two passport-sized photographs of the applicant, and a copy of their PAN card. Also, the bank will require completion of KYC norms and submission of complete information as required.
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