Union Bank FD Rates 2026: Fixed Deposit Interest Rates

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Quick Answer

Union Bank of India offers FD rates ranging from 6.3–7.1% p.a. for general customers and 6.8–7.6% p.a. for senior citizens. Rates vary by tenure — longer tenures (2–5 years) typically offer the best rates.

Union Bank FD Rates — Rates at a Glance

7–14 days6.3% p.a.
15–29 days6.3999999999999995% p.a.
30–45 days6.5% p.a.
46–90 days6.7% p.a.
91–179 days6.8% p.a.
180–364 days6.70% p.a.
1–2 years7.1% p.a.
Senior Citizen (1–2 years)7.6% p.a.(+0.50% extra)

Rates are indicative as of 2026-04-07. Verify with Union Bank of India official website before investing.

Key Things to Know

  • 1Union Bank of India FD rates range from 6.3–7.1% p.a. for general customers
  • 2Senior citizens get an additional 0.50% over general rates
  • 3Premature withdrawal is allowed with a penalty of 1% on applicable rate
  • 4Tax Saver FDs (5-year lock-in) qualify for Section 80C deduction up to ₹1.5 lakh
  • 5Interest earned is taxable as per income slab; TDS at 10% if interest > ₹40,000/year
  • 6DICGC insures deposits up to ₹5 lakh per depositor per bank

Calculate Your Returns

Principal

₹1,00,000

Interest Earned

₹23,144

Maturity Amount

₹1,23,144

Calculated with quarterly compounding (standard for most Indian banks). Actual maturity may vary by bank.

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Frequently Asked Questions

What is the highest Union Bank FD rate in 2026?

The highest Union Bank FD rate for general customers is 7.1% p.a., while senior citizens can earn up to 7.6% p.a. These peak rates apply for specific tenures — usually 1–2 years.

Can I break Union Bank FD before maturity?

Yes, Union Bank allows premature withdrawal of FDs. However, a penalty of approximately 1% is deducted from the applicable interest rate for the period held.

Is TDS deducted on Union Bank FD interest?

Yes, TDS at 10% is deducted if total FD interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your income is below the taxable limit.

What is the minimum amount to open a Union Bank FD?

The minimum FD amount at Union Bank is typically ₹1,000.

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