Union Bank Saving Account: Features, Interest Rate and Minimum Balance Explained
Reviewed by: Fibe Research Team
- Updated on: 25 Nov 2025
Reviewed by: Fibe Research Team
Opening a Union Bank of India savings account is one of the most practical ways to manage your money securely while earning interest on your deposits. Known for its nationwide presence and reliable digital banking, Union Bank of India offers several types of savings accounts tailored for individuals, salaried professionals, senior citizens and students.
Whether you want to know about the Union Bank minimum balance, the UBI savings account opening process or the Union Bank savings account interest rate, this guide covers everything you need before choosing the right account for your needs.
A Union Bank Saving Account is more than just a place to park your money; it offers convenient access to multiple banking services, including debit cards, internet banking, mobile banking and automatic fund transfers.
Some of the key benefits include:
The Union Bank saving account opening process can be completed online or at your nearest branch. Follow these simple steps:
Go to the Union Bank of India website and click on the “Open Savings Account” option
Select the type of UBI savings account: regular, salary or premium. Each has different features based on eligibility and usage
Enter your full name, address, PAN, Aadhaar and other KYC details
Upload your scanned KYC documents (Aadhaar, PAN and photo)
If you choose to open the account online, a video KYC verification will be conducted by a bank representative
Make an initial deposit based on your branch category to activate the account.
Your Union Bank Saving Account will be operational once verified and you can start using mobile and internet banking services immediately.
Maintaining the Union Bank minimum balance is important to keep your account active and avoid penalties. The Quarterly Average Balance (QAB) depends on whether your branch is located in a metro, urban, semi-urban or rural area.
Here’s the breakdown:
| Branch Category | Minimum balance you must maintain | Penalty for Non-Maintenance (per quarter) |
|---|---|---|
| Metro Branches | ₹5,000 | ₹200 + GST |
| Urban Branches | ₹3,000 | ₹150 + GST |
| Semi-Urban Branches | ₹1,000 | ₹100 + GST |
| Rural Branches | ₹500 | ₹75 + GST |
The bank may restrict certain facilities, such as cheque book issuance or fund transfers, until the minimum balance requirement is restored.
By maintaining the required quarterly average balance, you can avoid penalties and enjoy all the account benefits seamlessly.
The union bank savings account interest rate determines how much you earn on your deposited funds. The rate varies depending on your account balance and is subject to periodic changes as per RBI guidelines.
Here’s the current rate structure:
| Account Balance | Interest Rate (per annum) |
|---|---|
| Up to ₹50 lakh | 3.00% |
| Above ₹50 lakh | 3.50% |
Every savings account comes with some service-related charges. The union bank charges list helps customers understand applicable fees for transactions and account services. Below is an overview:
| Service | Charges |
|---|---|
| Cheque Book (20 leaves) | ₹75 + GST |
| SMS Alerts | ₹15 per quarter |
| Duplicate Passbook | ₹100 + GST |
| ATM Withdrawal (beyond free limit) | ₹20 per transaction |
| Demand Draft | ₹2.50 per ₹1,000 (minimum ₹50) |
| NEFT/RTGS via Branch | ₹2.50–₹50 depending on the amount |
| Account Closure (within 14 days) | Nil |
| Account Closure (after 14 days) | ₹500 |
When comparing the UBI savings account categories, it’s essential to understand that the minimum balance for metro vs rural branches differs significantly:
A Union Bank of India Savings Account is ideal for anyone seeking reliable and nationwide banking services. Here’s why it stands out:
If you ever find yourself short on funds or want to maintain your savings without dipping into them, Fibe can help. With Fibe, you can get an Instant Personal Loan of up to ₹5 lakhs at attractive interest rates to meet your short-term or emergency needs. The process is completely digital, quick and paperless, whether you’re managing your monthly expenses, paying bills or planning a major purchase.
Simply download the Fibe Instant Loan App or visit fibe.in to apply online and get money credited to your account within minutes. It’s the smarter, faster way to bridge financial gaps while keeping your savings intact.
The Union Bank minimum balance ranges from ₹500 for rural branches to ₹5,000 for metro branches, depending on your account location. Non-maintenance can attract quarterly penalties.
You can complete the Union Bank saving account opening online through the Union Bank of India website or by visiting your nearest branch. Provide KYC documents, complete verification and deposit the initial balance to activate your account.
The Union Bank savings account interest rate currently stands at 3.00% for deposits up to ₹50 lakh and 3.50% for amounts above ₹50 lakh.
You can view the updated Union Bank charges list on the bank’s official website under the “Service Charges” section.
