Union Bank of India Fixed Deposit (FD) Interest Rates 2026 – Latest Rates, Features & Eligibility
Union Bank of India Fixed Deposits (FDs) remain a dependable investment option in 2026 for individuals looking for safe and guaranteed returns. As a leading public sector bank, Union Bank offers competitive FD interest rates across short-term and long-term tenures.
If you’re planning to invest this year, here’s a complete guide covering Union Bank of India FD interest rates 2026, features, eligibility, tax rules, and how to open an FD.
Quick Summary: Union Bank FD 2026
| Feature | Details |
|---|---|
| Bank Name | Union Bank of India |
| Tenure | 7 days to 10 years |
| Minimum Deposit | ₹1,000 (may vary by scheme) |
| Maximum Deposit | No upper limit |
| Senior Citizen Benefit | +0.50% (typically) |
| Interest Payout | Monthly / Quarterly / On Maturity |
| Premature Withdrawal | Allowed with penalty |
| Loan Against FD | Available |
Union Bank FD Interest Rates 2026
Union Bank FD interest rates vary based on tenure and customer category (general public or senior citizen). Rates are subject to periodic revision.
Union Bank FD Rates for General Public (Indicative 2026)
| Tenure | Interest Rate (p.a.) |
|---|---|
| 7 – 45 days | 3.50% |
| 46 – 90 days | 4.50% |
| 91 – 180 days | 5.00% |
| 181 – 270 days | 6.00% |
| 271 days – 1 year | 6.25% |
| 1 year | 6.75% |
| 400 days (special tenure, if available) | 7.25% |
| 2 – 3 years | 7.00% |
| 3 – 5 years | 6.75% |
| 5 – 10 years | 6.50% |
Senior Citizen FD Rates (60+ Years)
Senior citizens usually receive an additional 0.50% interest over regular rates.
Example: If the general rate is 7.00%, seniors may earn around 7.50%.
Union Bank may also introduce special FD schemes from time to time. Always check the latest rates in the Union Bank mobile app or branch before investing.
Key Features of Union Bank Fixed Deposit
1. Flexible Tenure
Choose from 7 days up to 10 years.
2. Guaranteed Returns
Interest rate is fixed at the time of deposit.
3. Multiple Interest Payout Options
- Cumulative FD (interest paid at maturity)
- Non-cumulative FD (monthly/quarterly income)
4. Loan Against FD
Avail overdraft or loan up to 80–90% of deposit value.
5. Premature Withdrawal Facility
Allowed with a small penalty.
6. Auto-Renewal Option
FD can automatically renew on maturity.
Types of Union Bank FD Schemes
Union Bank offers different FD options:
- Regular Fixed Deposit
- Tax Saver FD (5-year lock-in)
- Senior Citizen FD
- NRE/NRO Fixed Deposits (for eligible NRIs)
- Special Tenure FD Schemes (if announced)
Union Bank Tax Saver FD 2026
For tax planning:
- Lock-in period: 5 years
- Eligible under Section 80C (up to ₹1.5 lakh)
- Premature withdrawal not allowed
- Interest earned is taxable
This is suitable for salaried individuals planning tax deductions.
Eligibility Criteria
You can open a Union Bank FD if you are:
- Resident Indian (18+ years)
- Senior citizen (60+ years)
- Minor (through guardian)
- Joint account holders
- HUF, partnership firms, or companies (as per bank norms)
NRIs can open NRE/NRO deposits subject to eligibility rules.
How to Open Union Bank FD (Step-by-Step)
Option 1: Online via Union Bank Net Banking / App
- Login to Union Bank net banking
- Select “Open Fixed Deposit”
- Enter deposit amount
- Choose tenure
- Select payout option
- Confirm and submit
FD advice is generated instantly.
Option 2: Visit Union Bank Branch
- Fill FD application form
- Submit KYC documents (Aadhaar, PAN)
- Deposit cheque or transfer funds
- Collect FD receipt
Premature Withdrawal Rules
- Allowed before maturity
- Penalty typically 0.5%–1% lower interest
- Tax Saver FD cannot be closed before 5 years
Penalty terms may vary, so confirm before closing.
Taxation on Union Bank FD Interest
Important tax details for 2026:
- Interest earned is fully taxable
- TDS applies if interest crosses prescribed limit
- Senior citizens have higher TDS exemption threshold
- Submit Form 15G/15H (if eligible) to avoid TDS
Interest income must be declared while filing ITR.
Who Should Invest in Union Bank FD?
Union Bank FD is suitable for:
✔ Risk-averse investors
✔ Senior citizens seeking regular income
✔ Individuals planning tax-saving investments
✔ Short-term and medium-term savers
It may not suit investors seeking higher, market-linked returns.
FAQs – Union Bank FD Interest Rates 2026
1. What is the highest Union Bank FD interest rate in 2026?
A. Mid-term special tenures (like 400 days, if available) often offer higher returns. Check the latest update in the Union Bank app.
2. Is Union Bank FD safe?
A. Yes. Union Bank of India is a public sector bank regulated by RBI.
3. Can I break Union Bank FD before maturity?
A. Yes, except Tax Saver FD. Penalty may apply.
4. What is the minimum deposit amount?
A. Typically ₹1,000.
5. Does Union Bank offer monthly interest payout?
A. Yes, under non-cumulative FD option.
Troubleshooting & Common Issues
FD Not Visible in Account?
Refresh net banking or contact Union Bank customer care.
TDS Deducted?
Check PAN update and Form 15G/15H submission status.
Auto-Renewal Not Working?
Update maturity instructions in net banking or visit branch.
Security Tips Before Investing
- Verify interest rate and tenure before confirmation
- Add nominee details
- Avoid sharing OTP or banking credentials
- Keep FD receipt saved safely
- Use official Union Bank channels only
Conclusion
Union Bank of India FD interest rates in 2026 remain competitive across various tenures. With flexible payout options, senior citizen benefits, and the credibility of a public sector bank, Union Bank Fixed Deposits continue to be a reliable and low-risk investment option.
Before investing, compare tenure-wise returns and check the latest interest rates in the Union Bank app or branch to maximise your returns.
