City Union Bank, since its inauguration in 1904 has served the people of India with some amazing offers and deals.The bank offers all-round banking facilities today with its headquarters in Kumbakonam. It is very well known for its fixed deposit schemes for customers with all sorts of investment capacity. Now, it has come up with fixed deposit schemes of different tenures with attractive returnsin orderto caterto the needs of people. At loanbaba.com, you will receive best deposit rates info and recent City Union Bank FD rates along with senior citizen FD interest rates. If you are looking at investing in a safe investment opportunity with fixed interest rates, then City Union Bank has a few good prospects for you. Read further for all the latest information on City Union’s Interest rates on different investment vehicles.
The short term deposit FD scheme hovers around the holding periods of 7 days to 364 days where the returns for the regular deposits vary from 6.75% to 7.60% on a yearly basis.People can use this service as a parking facility for their funds as well as the minimum period for deposit is as less as 7 days. For the holding period of 7 days to 3 months, the returns can be pegged at 6.75% per annum. It gets extended by 0.50% to become 7.25% per annum for the holding period between 3 and six months. Moreover, for the holding terms between 6 months and one year, one can avail FD rates of 7.60% per annum.As the period of deposit increases, obviously, the Bank offers a proportional increase in rate of interest to its customers. Among the many types of fixed deposits offered by City Union Bank, the short term Fixed Deposit has garnered a lot of interest from industry watchers because of the minimal tenure reduced to 7 days.
The holding period of one year or more comes under the category of medium and long-term fixed deposit FD, India scheme of this bank. On the other hand, the Non Resident External Savings Account (NRE) and Non Resident Ordinary Savings Account (NRO) also come under this scheme where the rate of interest ranges between 7.75% and 8.25%. With medium term loans, the tenure ranges from 1 year to 5 years. Deposit amount can be chosen by the customer according to his investment capacity.
However, the returns for this category are almost same as for the holding period of 1 year will avail 7.60% and for the holding period of 2 years, one can avail 8%, but it will eventually get decreased to 7.75% for the holding period of more than two years. Fixed Deposits are safe investment options as compared to stocks, mutual funds or investing in the commodities market. Most new age individuals do not understand the importance of striking a balance between fixed and variable interest producing investments. Long term fixed deposits by City Union Bank can range between 5 years to 10 years. The tenure is flexible for customers as they many choose the duration comfortable for them.
This scheme is eligible for the individuals availing FD rates, India of the bank but those above 60 years of age.Senior citizens in our country can enjoy higher interest rates as allowed by most banks for their customers.In this scheme, the customers can enjoy an increase of 25 percentage points compared to other. For the holding terms between 2 and 3 months, the returns are pegged at 6.75%, and for the holding terms between 4 and 6 months, one can avail 7.25%. Moreover, 7.75% is the interest rate for the tenure of 9 months. For a one year tenure period, it benefits with the highest returns of 8.50%. However, it dips to 8.25% for the tenures between one and five years.
For a fixed period of 1000 days, this deposit scheme offered by City Union Bank is a unique offering. The interest rate offered by the bank on this fixed deposit is 7.60% per annum for the deposit amount of money. Fixed deposits as a financial instrument offered by any bank or NBFCs provide the investors with a higher interest rate than savings account because of the lock in period. This means the customers are not at liberty to withdraw any money from the deposited amount before the maturity period is completed (in this case, 1000 days). This is applicable for regular citizens, associations and trusts.
According to the current income tax laws, any citizen can claim tax deduction on amounts up to Rs.150000 by applying to invest in Tax Saver Fixed Deposits. City Union Bank also has this avenue for its customers who would be interested in claiming the tax benefit according to Section 80C of the Income Tax Act. All customers intending to deposit have a minimum 5 year lock in period with an interest rate that is fixed at 7.35% per annum. The interest rate is same for regular citizens and senior citizens.
Non-Resident Indians can avail four types of fixed deposit schemes offered by the City Union Bank. The types of term deposits offered by CUB for NRIs are: