Union Bank of India Monthly Income Scheme
Fixed deposits are great investment options for the ones with a traditional point of view of saving, but then there's a constraint of not having liquidity options when financial needs suddenly crop up.
Union Bank of India offers its customers an option to open a fixed deposit account that allows them to benefit from preferential interest rates and also a monthly pay out of interest as per the contracted rate.
This specific scheme is known as Union Bank of India Monthly Income.
Eligibility Criteria for Applying for Union Bank of India Monthly Income
The basic eligibility criteria for opening a Monthly Income Deposit with Union Bank of India are as follows:
- Customer must be above 18 years of age
- Customer must be either salaried, self-employed or retired and an Indian citizen
- Customer must have existing banking relationship with Union Bank of India or must come with proper introductions
Apart from the above-mentioned basic criteria, the bank might require additional conditions to be fulfilled, based on its discretion.
Features of Union Bank of India Monthly Income Scheme
Account Type | Individuals can open an account. Joint accounts can be opened. Individuals can open an account on behalf of a minor. |
Deposit Amount |
|
Rate of Interest | Anywhere between 6.80% per annum to 7.25% per annum |
Period |
|
TDS | TDS Certificate will be issued by the Bank |
Lock-in Period | N/A |
Tax Rebate Applicability | N/A |
Loan against Union Bank of India Monthly Income Scheme | N/A (subject to change based on bank's discretion) |
Nomination | Nomination facility is available |
Auto Renewals | The scheme is valid only for the period selected at initiation. Renewal for another year happens only if the deposit is continued |
Union Bank of India Monthly Income Scheme Interest Rates
Tenure | Rate of Interest |
1 year | 6.80% |
More than 1 year - 398 days | 6.80% |
399 days | 7.25% |
400 days – Two Years | 6.60% |
More than two years – less than three years | 6.60% |
3 years | 6.60% |
More than 3 years – 5 years | 6.50% |
More than 5 years – 10 years | 6.50% |
*The interest rates mentioned above are effective from 2 August 2024.
FAQs on Union Bank of India Monthly Income Scheme
- What is the interest rate applicable for a Monthly Income Deposit account?
The interest rate could range from 6.80% per annum to 7.25% per annum. That would include any additional interest provided for senior citizens too.
- What are the documents required for opening a Monthly Income Deposit?
One would require an introduction to the bank or should be an existing customer. Apart from that, two recent passport size photographs of the person(s) opening the account will be required. Government attested ID proof and declaration through Form 60 or 61 or PAN (Permanent Account Number) or GIR (General Index Register) needs to be provided.
- How to apply for a Monthly Income Deposit in Union Bank of India?
One can apply for a Monthly Income Deposit with Union Bank of India through any of its official branches by furnishing the required documents and the minimum deposit amount.
- What is the maturity period of a Monthly Income Deposit?
The minimum maturity period of a Monthly Income Deposit will be 12 months and the maximum would be 10 years.
- What is the lock-in period for a Monthly Income Deposit account?
There are no applicable lock-in periods for this deposit and it can be prematurely cancelled at any time to obtain the principal and accrued interest.
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