Union Bank of India Senior Citizen FD Rates 2026

How to Open a Union Bank Senior Citizen FD

Opening a Union Bank Senior Citizen Fixed Deposit is a straightforward process that can be completed either online or in person at your nearest branch, at your convenience.

1. Online Method

   For Existing Customers

   • Log in to Union Bank Internet Banking or the Vyom App
   • Navigate to ‘Deposits’ → ‘Open Fixed Deposit’
   • Enter details like amount, tenure, interest payout mode, and nominee
   • Confirm and book your FD

   For New Customers

   • Visit Union Bank’s official site or the Vyom Digital Portal
   • Complete eKYC (Aadhaar OTP, PAN, or Video KYC)
   • Enter investment details and make the payment online
   • Receive FD confirmation instantly

2. Offline Method

   • Visit the nearest Union Bank branch.
   • Fill out the FD application form.
   • Submit KYC documents and choose your preferred tenure
   • Pay via cheque, cash, or transfer
   • Receive your FD receipt on successful creation

Taxation on Union Bank FD Rates Senior Citizens

• Interest income from senior citizen fixed deposits (FDs) at Union Bank is taxable under the Income Tax Act. 
• If the interest earned exceeds ₹1 lakh annually, TDS is deducted at a rate of 10% (20% without a PAN). 
• Senior citizens can submit Form 15H to avoid TDS if their income is below the taxable limit. 
• Under Section 80TTB, senior citizens can claim a deduction of up to ₹50,000 on interest income. 
• For long-term savings, tax-saving FDs offer benefits under Section 80C (up to ₹1.5 lakh), but the interest earned is taxable.

Key Benefits of Union Bank Senior Citizen FD

Union Bank of India offers a wide range of fixed deposit (FD) options to cater to various savings and cash flow needs and maintain high FD rates. Some of the main perks are:

• Low Minimum Deposit Amount: Union Bank allows fixed deposits to be opened with a minimum amount of ₹1,000, making the investment option accessible to all senior citizens.
• Premature Withdrawal: Premature withdrawal gives you a liquidity option during an emergency. The only Union Bank FD that doesn't allow early closure is the Tax Saver FD. If you withdraw the deposit before it matures, you may be charged a 1% fee on the interest accrued.
• Auto-Renewal Facility: Union Bank of India offers an auto-renewal feature for Fixed Deposits, which is particularly convenient for senior and super senior citizens who may prefer minimal bank visits or are less comfortable with digital platforms. Upon maturity, the FD is renewed automatically at the prevailing interest rates. While opting for auto-renewal, depositors can also specify the renewal preferences based on their financial needs.
• Facility for Sweep-in and Sweep-out: Union Bank offers a Savings Flexi Deposit Account that allows for automatic transfers of money in and out of the account. When the savings account balance exceeds ₹50,000, it is invested in fixed deposits in increments of ₹10,000 at a time. For liquidity, ₹5,000 chunks of money are swept back.

Key Takeaways

Union Bank FD rates for senior citizens are up to 6.80% per annum, with additional interest benefits for individuals aged 60 to 80 years and above. Retirees can choose from flexible tenure options and various interest payout modes to suit their financial goals. Opening an FD is simple and can be done online and offline. The Union Bank of India Senior Citizen FD comes up with multiple benefits that include premature withdrawal, an auto-renewal facility, and a deposit with a minimum amount. Submitting Form 15H and opting for tax-saving fixed deposits makes income planning efficient.