{"id":10562,"date":"2026-02-17T11:29:10","date_gmt":"2026-02-17T11:29:10","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&p=10562"},"modified":"2026-02-17T11:29:10","modified_gmt":"2026-02-17T11:29:10","slug":"union-bank-of-india-fixed-deposit-fd-interest-rates-2026-latest-rates-features-eligibility","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/union-bank-of-india-fixed-deposit-fd-interest-rates-2026-latest-rates-features-eligibility\/","title":{"rendered":"Union Bank of India Fixed Deposit (FD) Interest Rates 2026 \u2013 Latest Rates, Features & Eligibility"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

If you\u2019re planning to invest this year, here\u2019s a complete guide covering Union Bank of India FD interest rates 2026, features, eligibility, tax rules, and how to open an FD<\/strong>.<\/p>\n\n\n\n

Quick Summary: Union Bank FD 2026<\/h2>\n\n\n\n
Feature<\/th>Details<\/th><\/tr><\/thead>
Bank Name<\/td>Union Bank of India<\/td><\/tr>
Tenure<\/td>7 days to 10 years<\/td><\/tr>
Minimum Deposit<\/td>\u20b91,000 (may vary by scheme)<\/td><\/tr>
Maximum Deposit<\/td>No upper limit<\/td><\/tr>
Senior Citizen Benefit<\/td>+0.50% (typically)<\/td><\/tr>
Interest Payout<\/td>Monthly \/ Quarterly \/ On Maturity<\/td><\/tr>
Premature Withdrawal<\/td>Allowed with penalty<\/td><\/tr>
Loan Against FD<\/td>Available<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Union Bank FD Interest Rates 2026<\/h1>\n\n\n\n

Union Bank FD interest rates vary based on tenure and customer category (general public or senior citizen). Rates are subject to periodic revision.<\/p>\n\n\n\n

Union Bank FD Rates for General Public (Indicative 2026)<\/h3>\n\n\n\n
Tenure<\/th>Interest Rate (p.a.)<\/th><\/tr><\/thead>
7 \u2013 45 days<\/td>3.50%<\/td><\/tr>
46 \u2013 90 days<\/td>4.50%<\/td><\/tr>
91 \u2013 180 days<\/td>5.00%<\/td><\/tr>
181 \u2013 270 days<\/td>6.00%<\/td><\/tr>
271 days \u2013 1 year<\/td>6.25%<\/td><\/tr>
1 year<\/td>6.75%<\/td><\/tr>
400 days (special tenure, if available)<\/td>7.25%<\/td><\/tr>
2 \u2013 3 years<\/td>7.00%<\/td><\/tr>
3 \u2013 5 years<\/td>6.75%<\/td><\/tr>
5 \u2013 10 years<\/td>6.50%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Senior Citizen FD Rates (60+ Years)<\/h3>\n\n\n\n

Senior citizens usually receive an additional 0.50% interest<\/strong> over regular rates.<\/p>\n\n\n\n

Example: If the general rate is 7.00%, seniors may earn around 7.50%.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Key Features of Union Bank Fixed Deposit<\/h1>\n\n\n\n

1. Flexible Tenure<\/h3>\n\n\n\n

Choose from 7 days up to 10 years.<\/p>\n\n\n\n

2. Guaranteed Returns<\/h3>\n\n\n\n

Interest rate is fixed at the time of deposit.<\/p>\n\n\n\n

3. Multiple Interest Payout Options<\/h3>\n\n\n\n
    \n
  • Cumulative FD (interest paid at maturity)<\/li>\n\n\n\n
  • Non-cumulative FD (monthly\/quarterly income)<\/li>\n<\/ul>\n\n\n\n

    4. Loan Against FD<\/h3>\n\n\n\n

    Avail overdraft or loan up to 80\u201390% of deposit value.<\/p>\n\n\n\n

    5. Premature Withdrawal Facility<\/h3>\n\n\n\n

    Allowed with a small penalty.<\/p>\n\n\n\n

    6. Auto-Renewal Option<\/h3>\n\n\n\n

    FD can automatically renew on maturity.<\/p>\n\n\n\n

    Types of Union Bank FD Schemes<\/h1>\n\n\n\n

    Union Bank offers different FD options:<\/p>\n\n\n\n

      \n
    • Regular Fixed Deposit<\/li>\n\n\n\n
    • Tax Saver FD (5-year lock-in)<\/li>\n\n\n\n
    • Senior Citizen FD<\/li>\n\n\n\n
    • NRE\/NRO Fixed Deposits (for eligible NRIs)<\/li>\n\n\n\n
    • Special Tenure FD Schemes (if announced)<\/li>\n<\/ul>\n\n\n\n

      Union Bank Tax Saver FD 2026<\/h1>\n\n\n\n

      For tax planning:<\/p>\n\n\n\n

        \n
      • Lock-in period: 5 years<\/li>\n\n\n\n
      • Eligible under Section 80C (up to \u20b91.5 lakh)<\/li>\n\n\n\n
      • Premature withdrawal not allowed<\/li>\n\n\n\n
      • Interest earned is taxable<\/li>\n<\/ul>\n\n\n\n

        This is suitable for salaried individuals planning tax deductions.<\/p>\n\n\n\n

        Eligibility Criteria<\/h1>\n\n\n\n

        You can open a Union Bank FD if you are:<\/p>\n\n\n\n

          \n
        • Resident Indian (18+ years)<\/li>\n\n\n\n
        • Senior citizen (60+ years)<\/li>\n\n\n\n
        • Minor (through guardian)<\/li>\n\n\n\n
        • Joint account holders<\/li>\n\n\n\n
        • HUF, partnership firms, or companies (as per bank norms)<\/li>\n<\/ul>\n\n\n\n

          NRIs can open NRE\/NRO deposits subject to eligibility rules.<\/p>\n\n\n\n

          How to Open Union Bank FD (Step-by-Step)<\/h1>\n\n\n\n

          Option 1: Online via Union Bank Net Banking \/ App<\/h2>\n\n\n\n
            \n
          1. Login to Union Bank net banking<\/li>\n\n\n\n
          2. Select \u201cOpen Fixed Deposit\u201d<\/li>\n\n\n\n
          3. Enter deposit amount<\/li>\n\n\n\n
          4. Choose tenure<\/li>\n\n\n\n
          5. Select payout option<\/li>\n\n\n\n
          6. Confirm and submit<\/li>\n<\/ol>\n\n\n\n

            FD advice is generated instantly.<\/p>\n\n\n\n

            Option 2: Visit Union Bank Branch<\/h2>\n\n\n\n
              \n
            • Fill FD application form<\/li>\n\n\n\n
            • Submit KYC documents (Aadhaar, PAN)<\/li>\n\n\n\n
            • Deposit cheque or transfer funds<\/li>\n\n\n\n
            • Collect FD receipt<\/li>\n<\/ul>\n\n\n\n

              Premature Withdrawal Rules<\/h1>\n\n\n\n
                \n
              • Allowed before maturity<\/li>\n\n\n\n
              • Penalty typically 0.5%\u20131% lower interest<\/li>\n\n\n\n
              • Tax Saver FD cannot be closed before 5 years<\/li>\n<\/ul>\n\n\n\n

                Penalty terms may vary, so confirm before closing.<\/p>\n\n\n\n

                Taxation on Union Bank FD Interest<\/h1>\n\n\n\n

                Important tax details for 2026:<\/p>\n\n\n\n

                  \n
                • Interest earned is fully taxable<\/li>\n\n\n\n
                • TDS applies if interest crosses prescribed limit<\/li>\n\n\n\n
                • Senior citizens have higher TDS exemption threshold<\/li>\n\n\n\n
                • Submit Form 15G\/15H (if eligible) to avoid TDS<\/li>\n<\/ul>\n\n\n\n

                  Interest income must be declared while filing ITR.<\/p>\n\n\n\n

                  Who Should Invest in Union Bank FD?<\/h1>\n\n\n\n

                  Union Bank FD is suitable for:<\/p>\n\n\n\n

                  \u2714 Risk-averse investors
                  \u2714 Senior citizens seeking regular income
                  \u2714 Individuals planning tax-saving investments
                  \u2714 Short-term and medium-term savers<\/p>\n\n\n\n

                  It may not suit investors seeking higher, market-linked returns.<\/p>\n\n\n\n

                  FAQs \u2013 Union Bank FD Interest Rates 2026<\/h1>\n\n\n
                  \n
                  \n
                  \n

                  1. What is the highest Union Bank FD interest rate in 2026?<\/h3>\n
                  \n\n

                  A. Mid-term special tenures (like 400 days, if available) often offer higher returns. Check the latest update in the Union Bank app.<\/p>\n\n<\/div>\n<\/div>\n

                  \n

                  2. Is Union Bank FD safe?<\/h3>\n
                  \n\n

                  A. Yes. Union Bank of India is a public sector bank regulated by RBI.<\/p>\n\n<\/div>\n<\/div>\n

                  \n

                  3. Can I break Union Bank FD before maturity?<\/h3>\n
                  \n\n

                  A. Yes, except Tax Saver FD. Penalty may apply.<\/p>\n\n<\/div>\n<\/div>\n

                  \n

                  4. What is the minimum deposit amount?<\/h3>\n
                  \n\n

                  A. Typically \u20b91,000.<\/p>\n\n<\/div>\n<\/div>\n

                  \n

                  5. Does Union Bank offer monthly interest payout?<\/h3>\n
                  \n\n

                  A. Yes, under non-cumulative FD option.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n

                  Troubleshooting & Common Issues<\/h1>\n\n\n\n

                  FD Not Visible in Account?<\/h3>\n\n\n\n

                  Refresh net banking or contact Union Bank customer care.<\/p>\n\n\n\n

                  TDS Deducted?<\/h3>\n\n\n\n

                  Check PAN update and Form 15G\/15H submission status.<\/p>\n\n\n\n

                  Auto-Renewal Not Working?<\/h3>\n\n\n\n

                  Update maturity instructions in net banking or visit branch.<\/p>\n\n\n\n

                  Security Tips Before Investing<\/h1>\n\n\n\n
                    \n
                  • Verify interest rate and tenure before confirmation<\/li>\n\n\n\n
                  • Add nominee details<\/li>\n\n\n\n
                  • Avoid sharing OTP or banking credentials<\/li>\n\n\n\n
                  • Keep FD receipt saved safely<\/li>\n\n\n\n
                  • Use official Union Bank channels only<\/li>\n<\/ul>\n\n\n\n

                    Conclusion<\/h1>\n\n\n\n

                    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.<\/p>\n\n\n\n

                    Before investing, compare tenure-wise returns and check the latest interest rates in the Union Bank app or branch to maximise your returns.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-10562","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/10562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}