Latest Union Bank RD Interest Rates: Everything You Need to Know

Saving regularly is one of the easiest ways to build wealth. Recurring deposits (RDs) let you do this with small monthly instalments while earning fixed returns. Union Bank of India offers RDs with multiple tenures, guaranteed interest and senior citizen benefits. 

The Union Bank RD interest rates 2025 align with FD slabs, ranging up to 7.30 percent for general customers and up to 7.80 percent for seniors. Read on to explore the latest rates, benefits and features of a Union Bank RD.

About Union Bank of India

Union Bank of India is one of the largest public sector banks in the country. It has a strong branch network and digital banking platforms. Among its wide range of deposit products, recurring deposits remain popular because they help customers build savings in a disciplined way.

With a Union Bank RD, you can start with a small deposit as low as ₹50 on the Cumulative Deposit scheme and ₹100 on the Monthly Plus scheme. Just choose a tenure that suits your goals to earn assured returns linked to the Union Bank of India RD interest rate of that tenure. The bank also offers loan and overdraft facilities against the balance in your RD.

Union Bank RD Interest Rates 2025

Union Bank does not publish a separate RD card. RDs earn the same rate as Fixed Deposits of the same tenor. Below are the Union Bank recurring deposit interest rates for deposits under ₹3 crores, based on the FD slab, effective 2025.

Period	General Public (p.a.)	Senior Citizens (p.a.)
7 to 45 days	3.50%	4.00%
46 to 90 days	4.50%	5.00%
121 to 180 days	5.00%	5.50%
181 to 332 days	6.35%	6.85%
333 days	7.00%	7.50%
1 year	6.80%	7.30%
399 days	7.00%	7.50%
456 days	7.30%	7.80%
997 days	6.40%	6.90%
3 years	6.70%	7.20%
3 years to 5 years	6.50%	7.00%
More than 5 years to 10 years	6.50%	7.00%

Union Bank RD for Senior Citizens

Union Bank of India RD interest rate for senior citizens are always higher than regular rates. For example, a 1-year RD earns 6.80 percent for general customers and 7.30 percent for seniors. That extra 0.5 percent may look small. But over 3 to 5 years it can add up to a noticeable difference in returns.

Union Bank RD for NRI Customers

Union Bank also offers RDs for Non-Resident Indians (NRE and NRO). These deposits follow the NRE/NRO FD slab rates for the chosen tenure, making it a safe way for NRIs to build savings in India. It’s best to always check the latest NRE/NRO RD rates before investing.

Benefits of Opening a Union Bank RD

• Easy to start: Begin with small monthly instalments from as low as ₹50
• Flexible tenure: Choose between 7 days and 10 years
• Assured returns: Interest rates remain fixed through the tenure
• Loan facility: Take a loan or overdraft against your RD balance if needed
• Senior citizen benefit: Higher rates up to 0.5% p.a. for customers above 60 years
• No market risk: Safe savings without exposure to market volatility

Example of RD Earnings

Suppose you deposit ₹5,000 every month in a Union Bank RD for 3 years at 6.70 percent. At maturity, you will receive around ₹2 lakh including interest. This shows how small monthly deposits can grow into a good amount over time.

What to Remember Before Opening a Union Bank RD

• Interest is compounded quarterly and paid on maturity
• Premature closure rules vary by scheme. On most RDs, you may get lower interest and pay a 1 percent penalty. Some Union Bank schemes report no penalty for delayed instalments. Always review the T&Cs before booking
• TDS is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G or 15H if eligible
• Always check the latest Union Bank recurring deposit interest rates before booking

How to Open a Union Bank RD

You can open an Union Bank RD easily through:

• Union Bank internet banking
• Union Bank Vyom mobile app
• Visiting your nearest Union Bank branch

Go to the ‘Deposits’ section, choose ‘Recurring Deposit’, select your tenure and instalment. Once you confirm, your RD will start right away and you can easily track it online.

Union Bank recurring deposits are a safe way to build savings while earning assured returns. With competitive rates, senior citizen benefits and NRI options, they cater to a wide range of savers.

And if you want another safe way to grow your money, a fixed deposit can be an excellent choice. With Fibe, you can start with as little as ₹1,000 and book your FD in just a few clicks! Download the Fibe App now to get started! 

FAQs on Union Bank RD Interest Rates

Can I take a loan against my RD in Union Bank?

Yes. Union Bank allows loans and overdrafts against your RD balance. The terms depend on the scheme you choose.

Are Union Bank RD interest rates different for NRI customers?

Yes, they are. Union Bank allows NRIs to open RDs under NRE and NRO accounts. These follow the same slab rates as NRE and NRO fixed deposits for the chosen tenure.

What is the tenure range available for Union Bank recurring deposits?

Union Bank RDs can start from just 7 days and go up to 10 years. The bank also offers special slabs in between that give slightly higher rates for select periods.