Union Bank of India- Product


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  1. 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.

  2. Types of term deposit:
    The deposit can be of Single holder type or Joint holder type.The single holder type of deposit shall be issued to an individual for himself or in the capacity of the Karta of the Hindu undivided family. The joint holder type of deposit receipt may be issued jointly to two adults or jointly to an adult and a minor and payable to either of the holders or to the survivor.
    In case of joint holder type of deposit, the deduction from income under section 80C of the Act shall be available only to the first holder of the deposit.

  3. Investment:
    The amount to be invested in the term deposit of the Bank shall be a minimum of Rs.5,000/- and in multiples of Rs.1,000/- thereof and maximum limited to Rs.1,50,000/- in a financial year. The product will be available for investment, until further announcement or otherwise withdrawn by the Government, as the case may be.

  4. Period of deposit:
    Deposit will be accepted for a minimum period of 5 years and maximum period of 10 years.

  5. Forms of term deposit:
    The deposit will be accepted in the form of DRIC or Fixed Deposit or Monthly Income Scheme.

  6. Issue of term deposit receipt:
    The term deposit receipt shall bear the name, address, Permanent Account Number and Signature of the depositor, along with other particulars.

  7. Authorised Branches:
    The deposit will be accepted by all branches across the country.

  8. Transfer of deposit:
    The deposit may be transferred from one branch to any other branch of Union Bank of India on the depositor making an application, at either of the two branches. The said Term deposit will not be transferred to any other Bank.

  9. Pledging of term deposit:
    The term deposit can be pledged to secure loan or as security to any other asset, only after the lock in period of 5 years. This will be subject to the terms and conditions governing such loans/advances.

  10. Encashment on maturity:
    The maturity period of term deposit receipt of any denomination shall be minimum five years commencing from the date of the receipt and maximum being 10 years. No term deposit shall be encashed before the expiry of five years from the date of its receipt.

  11. Rate of Interest:
    Rates of interest as applicable to general Term Deposits will apply. Senior Citizens will be eligible for additional interest as per the extant policy of the Bank.

  12. Payment of Interest:
    The interest may be paid either in lump sum at the time of maturity or it may be paid every quarter or every month in accordance with the regulatory guidelines for payment of interest on the nature of term deposit chosen.

  13. Nomination:
    Nomination can be made for the deposit as per extant guidelines applicable. No nomination shall be made in respect of a term deposit applied for and held by or on behalf of a minor.

  14. Tax liability on interest on the deposit:
    Interest on these deposits shall be liable to tax under the Income Tax Act. TDS will be applicable as per extant guidelines.

  15. Benefit Under Section 80 C:
    Exemption under section 80 C of Income Tax Act can be claimed by the depositor in case of single depositor or the first holder in case of joint depositors, within eligible investments.

Forms & Documents