Union Bank of India FD Interest Rates 2026: Updated Rate Card
07 July 2026 · Sachin Gadekar
Complete and updated Union Bank of India FD interest rates for 2026 -tenure-wise rate table, senior citizen and super senior citizen rates, the 444-day and 333-day special schemes, Flexi Deposit, tax-saving FD details, post-tax return calculations, and how Union Bank FD rates compare to other PSU banks and higher-yield alternatives.
Union Bank of India (UBI) is one of India's largest public sector banks, formed from the amalgamation of Union Bank of India, Andhra Bank, and Corporation Bank in April 2020. With a combined deposit base that makes it a significant player in India's banking landscape, its fixed deposit products are widely used by retail depositors, senior citizens, and HNIs seeking capital safety with predictable, government-backed returns.
Union Bank of India FD interest rates in 2026 were revised effective June 1, 2026 -with the current rate card offering up to 6.50% for general citizens and 7.25% for super senior citizens on select tenures. The bank also runs special scheme deposits on 333-day, 444-day, and 997-day tenures that offer the highest available rates in its product lineup.
This article provides the complete, updated Union Bank of India FD interest rates for 2026 -covering all tenures, senior citizen and super senior citizen rates, special schemes, the Flexi Deposit facility, tax-saving FD details, and a clear post-tax return analysis for investors.
Union Bank of India FD Interest Rates 2026: General Public (Below ₹3 Crore)
| Tenure | Union Bank FD Interest Rate 2026 (p.a.) | Interest Payout Options |
|---|---|---|
| 7 days to 14 days | 3.00% | At maturity |
| 15 days to 30 days | 3.00% | At maturity |
| 31 days to 45 days | 3.50% | At maturity |
| 46 days to 90 days | 4.50% | At maturity |
| 91 days to 179 days | 4.75% | At maturity |
| 180 days to 270 days | 6.00% | Monthly / Quarterly / At maturity |
| 271 days to less than 1 year | 6.00% | Monthly / Quarterly / At maturity |
| 1 year | 6.50% | Monthly / Quarterly / At maturity |
| Above 1 year to 2 years | 6.50% | Monthly / Quarterly / At maturity |
| 2 years to 3 years | 6.50% | Monthly / Quarterly / At maturity |
| 3 years to 5 years | 6.25% | Monthly / Quarterly / At maturity |
| 5 years to 10 years | 6.00% | Monthly / Quarterly / At maturity |
Union Bank of India FD interest rates 2026 are subject to revision based on RBI policy rate movements. Always verify current rates at Union Bank's official website (unionbankofindia.co.in) or at your nearest branch before booking a deposit.
Key highlights of Union Bank FD interest rates in 2026:
The peak Union Bank FD interest rate for general citizens is 6.50%, applying across the 1-year to 3-year tenure band -a flat structure that does not penalise investors for longer commitments within this range
Short-tenure Union Bank FD interest rates (below 6 months) are significantly lower, ranging from 3.00% to 4.75% -making sub-6-month FDs unsuitable as a primary income instrument
The 3-5 year band drops to 6.25% and 5-10 year to 6.00% -a gentle step-down for longer tenures
Union Bank of India FD Interest Rates 2026: Senior Citizens (60–80 Years)
Senior citizens aged 60 to 80 years receive an additional 0.50% per annum on Union Bank of India FD interest rates on deposits below ₹3 crore with tenure of 180 days or more.
| Tenure | General Rate | Senior Citizen Premium | Union Bank FD Rate for Senior Citizens 2026 |
|---|---|---|---|
| 180 days to 270 days | 6.00% | +0.50% | 6.50% |
| 271 days to less than 1 year | 6.00% | +0.50% | 6.50% |
| 1 year | 6.50% | +0.50% | 7.00% |
| Above 1 year to 2 years | 6.50% | +0.50% | 7.00% |
| 2 years to 3 years | 6.50% | +0.50% | 7.00% |
| 3 years to 5 years | 6.25% | +0.50% | 6.75% |
| 5 years to 10 years | 6.00% | +0.50% | 6.50% |
The Union Bank FD interest rate for senior citizens reaches 7.00% on the 1-year, 1-2 year, and 2-3 year tenure bands -making these the most attractive standard-rate tenures for senior depositors. The flat 7.00% across the 1-3 year band means senior citizens can lock in consistent yields without a rate step-down for slightly longer commitments.
Union Bank of India FD Interest Rates 2026: Super Senior Citizens (80+ Years)
Union Bank of India offers a 0.75% additional premium for super senior citizens (80+ years) -0.25% more than the regular senior citizen premium of 0.50% -on deposits below ₹3 crore with tenure of 180 days or more.
| Tenure | General Rate | Super Senior Premium | Union Bank FD Rate for Super Senior Citizens 2026 |
|---|---|---|---|
| 180 days to 270 days | 6.00% | +0.75% | 6.75% |
| 1 year | 6.50% | +0.75% | 7.25% |
| Above 1 year to 2 years | 6.50% | +0.75% | 7.25% |
| 2 years to 3 years | 6.50% | +0.75% | 7.25% |
| 3 years to 5 years | 6.25% | +0.75% | 7.00% |
| 5 years to 10 years | 6.00% | +0.75% | 6.75% |
The Union Bank FD interest rate for super senior citizens reaches 7.25% on the 1-year through 3-year tenure band -among the higher super senior citizen rates available in the PSU bank segment. This is a meaningful benefit: a depositor aged 80+ with ₹10 lakhs in a 1-year Union Bank FD earns ₹72,500 gross annually versus ₹65,000 for the standard rate.
Union Bank Special FD Schemes 2026: 333-Day, 444-Day, 997-Day
Union Bank of India runs three special fixed deposit tenure schemes that offer differentiated rates within its product lineup:
| Scheme | Tenure | General Rate | Senior Citizen Rate | Super Senior Citizen Rate | vs Standard Card for Nearest Tenure |
|---|---|---|---|---|---|
| Union Bank 333-Day Special FD | 333 days | 6.15% | 6.65% | 6.90% | Slightly lower than 1-year standard rate (6.50%) -primarily a short-tenure option |
| Union Bank 444-Day Special FD | 444 days | 6.50% | 7.00% | 7.25% | At par with 1-year standard rate -extends the top rate to a 444-day commitment |
| Union Bank 997-Day Special FD | 997 days (~2.7 years) | 6.50% | 7.00% | 7.25% | At par with 2-3 year standard rate -extends the top rate to a longer commitment |
The honest assessment of Union Bank's special schemes: Unlike some PSU banks (Canara Bank's 444-day at 7.25% vs its standard 6.85%, BOI's Star Dhan Vriddhi at 7.25% vs its standard 6.80%), Union Bank's special schemes do not offer a material premium above the standard rate card -they simply offer the same peak rate (6.50% general) at specific "odd" tenures. The 444-day and 997-day schemes are useful for investors who want to lock the peak rate to a specific tenure window, but they do not represent a yield uplift over the standard 1-3 year card.
Always verify scheme availability before booking -special schemes are subject to periodic modification or withdrawal.
Union Bank Flexi Deposit: Auto-Sweep FD
The Union Bank Flexi Deposit (also called the Savings Flexi Deposit Account) is an auto-sweep facility that automatically converts idle savings account balances into fixed deposits.
How it works:
When the savings account balance exceeds ₹50,000, the surplus amount is automatically swept into a linked fixed deposit in multiples of ₹10,000
The FD earns the Union Bank FD interest rate applicable to the chosen sweep tenure
When funds are needed, the reverse sweep happens automatically -the FD is broken in multiples of ₹10,000 to fund the withdrawal, without requiring manual FD closure
Interest is applied on the actual FD holding period, with a partial penalty (typically 1%) if swept-out before the tenure
Why this matters for investors: The Flexi Deposit is the most practical tool for investors who have large savings account balances sitting at 2.5-3.5% savings rate rather than earning FD-level returns. For HNIs who regularly receive large income deposits (salary, rental income, professional fees) before deploying into investments, the auto-sweep ensures idle capital earns FD-level Union Bank FD interest rates automatically -without manual intervention.
Union Bank Tax-Saving FD 2026
Union Bank of India offers two tax-saving fixed deposit schemes qualifying for deduction under Section 80C:
1. Union Tax Saver Deposit (lump sum):
Tenure: Exactly 5 years (mandatory lock-in)
Rate 2026: 6.00% for general citizens; 6.50% for senior citizens
Minimum deposit: ₹100; maximum: ₹1.5 lakh per financial year (80C limit)
Premature withdrawal: Not permitted under any circumstances
2. Union Tax Saver Flexi Deposit (monthly instalments):
A unique feature -allows deposits via monthly standing instructions throughout the financial year, rather than requiring a single lump sum
Cumulative deposits in a financial year qualify for 80C deduction up to ₹1.5 lakh
Any amount deposited is locked in for 5 years from the date of deposit
Interest rate aligned with the standard tax saver FD rate
The HNI perspective: The Union Bank tax saver FD at 6.00% delivers only 4.14% post-tax at 30% bracket -the least efficient 80C instrument available. PPF at 7.1% fully tax-free delivers 7.1% post-tax at any bracket. ELSS with 3-year lock-in offers equity-linked upside with LTCG at 12.5% above ₹1.25 lakh threshold. For HNIs with meaningful 80C headroom, PPF or ELSS are structurally superior to a tax-saving FD.
Union Bank FD Rates for Deposits Above ₹3 Crore
For deposits above ₹3 crore (bulk deposits), Union Bank of India applies a different, typically lower rate card negotiated based on amount and tenure. These rates are revised more frequently than the retail card and are subject to negotiation with the bank's treasury or relationship manager.
Investors deploying above ₹3 crore in Union Bank FDs should contact their relationship manager or nearest Union Bank branch for current bulk deposit rates -which may be 25-50 basis points below the retail card for equivalent tenures.
Post-Tax Returns on Union Bank FD: What You Actually Earn
Union Bank FD interest is taxed as income at the investor's applicable slab rate. This significantly reduces the effective return for HNIs.
| Annual Income | Effective Tax Rate | Union Bank FD Gross Rate | Tax Deducted | Post-Tax Return | Real Return vs 4.5% Inflation |
|---|---|---|---|---|---|
| Up to ₹7 Lakhs (new regime zero tax) | 0% | 6.50% | 0% | 6.50% | +2.00% |
| ₹7–12 Lakhs | ~10% | 6.50% | 0.65% | 5.85% | +1.35% |
| ₹12–24 Lakhs (20% slab) | ~20% | 6.50% | 1.30% | 5.20% | +0.70% |
| ₹24–50 Lakhs (30% slab) | 31.2% | 6.50% | 2.03% | 4.47% | -0.03% (below inflation) |
| ₹50L–₹1 Crore | 34.32% | 6.50% | 2.23% | 4.27% | -0.23% (below inflation) |
| ₹1–2 Crore | 35.88% | 6.50% | 2.33% | 4.17% | -0.33% (below inflation) |
The critical insight for HNIs: At income above ₹24 lakhs, the Union Bank FD interest rate of 6.50% delivers a negative real post-tax return -your capital is nominally safe but slowly losing purchasing power. For investors in these brackets, Union Bank FDs are appropriate only as the DICGC-covered emergency buffer (₹5 lakhs per bank) -not as a primary income-generating instrument.
TDS on Union Bank FD: Union Bank deducts TDS at 10% if total annual interest exceeds ₹40,000 (₹50,000 for senior citizens) with PAN; 20% without PAN. Submit Form 15G (non-seniors below taxable income) or Form 15H (senior citizens below taxable income) at the start of each financial year to avoid TDS deduction.
How to Open a Union Bank FD in 2026
Online (Union Bank mobile app / net banking):
Log in to the Union Bank of India mobile app or internet banking (unionbankofindia.co.in)
Navigate to "Deposits" → "Open Fixed Deposit"
Select FD type (Regular / Tax Saver / Flexi), tenure, amount, and interest payout option
Review the applicable Union Bank FD interest rate for your chosen tenure
Confirm -funds debited from linked savings account, FD receipt generated digitally
Offline (Branch):
Visit nearest Union Bank branch
Carry PAN, Aadhaar, passport photo, and existing Union Bank account details
Fill FD application form with tenure, amount, scheme, and nominee details
Submit -FD receipt issued at the branch
Minimum deposit: ₹1,000 for most schemes Maximum deposit: No limit for regular FDs below ₹3 crore; ₹1.5 lakh per financial year for tax-saving FD
Premature Withdrawal and Loan Against FD
Premature withdrawal: Union Bank allows premature closure on all regular FDs with a penalty of 1% on the applicable interest rate for deposits of ₹2 crore and below withdrawn after 7 days. No interest is paid if the FD is broken within the first 7 days of opening. Tax Saver FDs cannot be withdrawn before 5 years.
Loan against Union Bank FD:
Loans available up to 90% of the FD value against FD as collateral
Interest rate on loan: typically 1%–2% above the applicable FD rate
Available on regular FDs; not available on tax-saving FDs
U-Secure credit card against FD: Union Bank also offers a secured credit card against FD with credit limit up to 80% of the FD amount -useful for building credit history without income proof or CIBIL requirement
Union Bank FD vs Other PSU Banks: Rate Comparison
| Bank | 1-Year FD Rate (General) | Senior Citizen Rate | Super Senior Rate | Best Special Scheme |
|---|---|---|---|---|
| Canara Bank | 6.85% | 7.35% | 7.50% | 7.25% general / 7.90% super senior (444-day) |
| Bank of India (BOI) | 6.80% | 7.30% | 7.45% | 7.25% general / 7.90% super senior (Star Dhan Vriddhi, 333-day) |
| Union Bank of India | 6.50% | 7.00% | 7.25% | 6.50% general / 7.25% super senior (444-day -at par with standard) |
| Bank of Baroda | 6.60% | 7.10% | ~7.35% | 7.15% general (400-day Baroda Tiranga) |
| State Bank of India (SBI) | 6.60% | 7.10% | ~7.10% | SBI We-care for senior citizens (5+ year tenure) |
| Punjab National Bank (PNB) | 6.60% | 7.10% | 7.40% | 6.60% standard (no active special scheme premium) |
Union Bank FD interest rates in 2026 are slightly below the PSU peer group -at 6.50% for 1-year general versus 6.60% for SBI, PNB, and BoB, and 6.85% for Canara Bank. For investors specifically comparing PSU bank FD rates, Canara Bank (6.85%) and BOI (6.80%) offer higher standard rates with more competitive special scheme premiums. Union Bank's competitive advantage lies in its 0.75% super senior citizen premium (which matches or exceeds most peers), its Flexi Deposit auto-sweep facility, and the flexible Tax Saver Flexi Deposit for monthly instalment-based 80C investing.
Union Bank FD vs Higher-Yield Alternatives
While Union Bank of India FD interest rates are competitive within the conservative PSU bank segment, investors seeking meaningfully higher post-tax returns have structured alternatives available.
| Instrument | Gross Yield | Post-Tax (30%) | vs Union Bank FD Advantage | Key Trade-off |
|---|---|---|---|---|
| Union Bank FD (1-year, baseline) | 6.50% | 4.47% | — | Baseline -DICGC ₹5L, liquid with penalty |
| AA Corporate NCD (monthly payout) | 9.5%–10.5% | 6.55%–7.24% | +2.1%–2.8% | Issuer credit risk; listed exchange liquidity |
| Invoice Discounting (Tier 1-2 buyers) | 11%–13% | 7.59%–8.97% | +3.1%–4.5% | 30–90 day lock-in per deal; buyer credit risk on large corporates/PSUs |
| Asset Leasing (solar/commercial vehicles) | 11%–15% | 7.59%–10.35% | +3.1%–5.9% | 24–60 month lock-in; lessee + asset risk |
| RBI Floating Rate Savings Bond | 8.05% | 5.55% | +1.08% | 7-year lock-in; sovereign safe; non-transferable |
| Canara Bank 444-Day Special FD | 7.25% | 4.99% | +0.52% | 444-day lock-in; PSU bank safety; DICGC covered |
A useful additional comparison within the PSU bank space: Canara Bank's 444-day special scheme at 7.25% general beats Union Bank's peak standard rate by 75 basis points -delivering 4.99% post-tax at 30% versus Union Bank's 4.47%. For investors whose primary reason for choosing a PSU bank FD is capital safety with maximum guaranteed yield, comparing across PSU special schemes before booking is worthwhile.
For the complete bank-wise FD comparison, read: Best FD Interest Rates in India 2026: Bank-Wise Comparison
Explore high-yield alternatives to Union Bank FDs at www.getultra.club -curated invoice discounting and asset leasing delivering 10–15% returns for investors ready to move surplus beyond FD rates.
FAQs
Q1. What are the current Union Bank of India FD interest rates in 2026?
Union Bank of India FD interest rates effective June 1, 2026: 1-year FD -6.50% for general public, 7.00% for senior citizens (60–80 years), 7.25% for super senior citizens (80+). The same 6.50% general / 7.00% senior / 7.25% super senior rate applies across the 1-year to 3-year tenure band. Short-tenure rates (below 6 months) range from 3.00% to 4.75%.
Q2. What is the highest Union Bank of India FD rate in 2026?
The highest Union Bank FD interest rate for general citizens in 2026 is 6.50% -available on the 1-year, 1-2 year, 2-3 year tenures, and the 444-day and 997-day special schemes. For senior citizens, the highest rate is 7.00% on the same tenures. For super senior citizens (80+), the highest rate is 7.25% -the bank offers a 0.75% premium over standard rates, one of the higher super senior premiums in the PSU bank segment.
Q3. What is the Union Bank FD interest rate for senior citizens in 2026?
Senior citizens (60–80 years) receive an additional 0.50% over standard rates. For 2026: 1-year Union Bank senior citizen FD rate is 7.00%, applying across the 1 to 3-year tenure band. Super senior citizens (80+) receive an additional 0.75% -earning 7.25% on the 1-3 year band.
Q4. Does Union Bank offer a special FD scheme in 2026?
Yes -Union Bank runs three special tenure FD schemes: 333-day (6.15% general / 6.65% senior / 6.90% super senior), 444-day (6.50% general / 7.00% senior / 7.25% super senior), and 997-day (6.50% general / 7.00% senior / 7.25% super senior). Unlike some peer banks (Canara Bank 444-day at 7.25%), Union Bank's special schemes do not offer a rate premium above the standard card -they provide the peak rate at specific "odd" tenures. Always verify scheme availability directly with your branch before booking.
Q5. What is Union Bank Flexi Deposit?
The Union Bank Flexi Deposit (Savings Flexi Deposit Account) is an auto-sweep facility that automatically converts savings account balances above ₹50,000 into fixed deposits in multiples of ₹10,000. The FD earns Union Bank FD interest rates for the chosen sweep tenure. When funds are needed, a reverse sweep breaks the FD in ₹10,000 multiples automatically. This is useful for investors who accumulate large savings balances and want idle capital to earn FD-level returns without manual intervention.
Q6. How does Union Bank FD compare to other PSU bank FDs in 2026?
Union Bank of India FD rates are slightly below the PSU peer group. The 1-year general rate of 6.50% is below Canara Bank (6.85%), BOI (6.80%), SBI (6.60%), PNB (6.60%), and Bank of Baroda (6.60%). The super senior citizen rate of 7.25% is competitive but matched or exceeded by BOI and Canara Bank's special schemes (up to 7.90%). Union Bank's differentiators are its Flexi Deposit auto-sweep facility and flexible Tax Saver Flexi Deposit for monthly instalment 80C investing.
Q7. What is the post-tax return on Union Bank FD for a 30% taxpayer?
On a 1-year Union Bank FD at 6.50% gross, a taxpayer in the 31.2% effective bracket (income ₹24–50 lakhs) earns 4.47% post-tax -marginally below the 4.5% inflation rate, a slightly negative real return. For investors above ₹50 lakhs income, post-tax returns fall further to 4.17–4.27% -well below inflation. Union Bank FDs are appropriate as the DICGC-covered emergency buffer at these income levels, not as a primary income instrument.
Disclaimer
Union Bank of India FD interest rates 2026 mentioned in this article are based on publicly available Union Bank rate communications effective June 1, 2026. Rates are subject to change at the bank's discretion based on RBI policy. Always verify current Union Bank FD interest rates directly at unionbankofindia.co.in or your nearest Union Bank branch before booking a deposit.