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Home You are here : path  Products path Personal path Cumulative Deposit

Image Cumulative Deposit Scheme

  • Union Cumulative Deposit Scheme is mainly aimed at lower / lower middle / middle / upper middle and salaried sector. It mainly encourages small investors to save in easy monthly installments over a fixed period of time.
  • A pass book will be provided to the depositor.


Scheme Code



Any Resident Individual - Single Accounts, Two or more individuals in Joint Accounts, Illiterate Persons, visually impaired persons, Purdanasheen Ladies, Minors, Associations, Clubs, Societies, etc. Trusts, Institutions/Agencies specifically permitted by the RBI eligible to open a "Cumulative Account" in single/joint name/s.

Minimum Period

6 Months

Maximum Period

  • 120 months (In multiple of 1 month) , The number of instalments once selected, cannot be altered. (A cumulative deposit can be converted into a Term Deposit before maturity, provided that the term deposit is for a period larger than the remaining period of cumulative deposit account and arrears, if any, of the monthly instalments together with the penalty for the delay, are paid by the depositor.) However, in the unlikely case of the monthly instalment being discontinued for a valid reason, the account holder can convert the amount of instalments already paid, into Fixed or Reinvestment Deposit for a period longer than the remaining period of the Cumulative account. For the period the cumulative account has run, compound interest at the applicable rate is payable.

Minimum Monthly Installment

  • Rs.50/- (The instalment amount selected at the start of the scheme will be payable every month)

Maximum Monthly Installment

No Limit

Rate of Interest

The rate of interest is payable on Cumulative Deposit Scheme as per interest table available on the Bank’s website.

Interest payment Frequency

Interest will be calculated, compounded on quarterly rests and credited to the deposit account on half yearly interval. Interest accrued on the deposit will be paid along with principal at the time of maturity or one month after the deposit of last instalment whichever is later.

Penalty for delayed instalment

No Penalty to be charged for delayed/non-deposit of monthly instalment amount with effect from 01.04.2020.


TDS will be deducted as per guidelines

Loan Facility


Nomination Facility

Available as per guidelines

Automatic Renewal

Not allowed

Premature Closure

Allowed. Interest will be paid for the run period at applicable rate and penalty if any. In case of premature closure within one month of the opening of the account, no interest will be paid.

Penalty on Premature Closure


No Penalty