City Union Bank Fixed Deposit

City Union Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on City Union Bank FDs is higher than their savings account. One can invest in City Union Bank FDs through both online and offline modes with just a minimum investment of INR 100.

City Union Bank Fixed Deposit Schemes

• Fixed Deposit
• Flexifix Fixed Deposit
• Tax Saver Deposit

Fixed Deposit

A basic fixed deposit account that allows investors to earn higher returns than a savings account. Following are the features of CUB FD:

• Minimum Deposit: INR 100
• Tenure: 7 days to 10 years
• Interest payout: Monthly, quarterly, half-yearly, annual basis as per the choice of the investor
• Premature withdrawal: Available, with a penalty
• Auto-renewal: Available
• Nomination: Available

Flexifix Fixed Deposit

A fixed deposit that offers the benefits of an FD and flexibility of withdrawal in one scheme. Following are the features of this deposit scheme:

• Minimum Deposit: INR 10,000 and in multiples of INR 5,000 thereof
• Tenure: 30 days to 5 years
• Interest payout: Monthly, quarterly, half-yearly, annual basis as per the choice of the investor
• Interest withdrawal: Interest can be withdrawn in multiples of INR 5,000.
• Auto-renewal: Available
• Nomination: Available

Tax Saver Deposit

A tax saving FD that helps in saving tax up to INR 1.5 lakhs per annum. Following are the features of the CUB Tax Saver Deposit:

• Minimum Deposit: Tax Saver Silver INR 100, Tax Saver Gold: INR 1,000
• Maximum Deposit: INR 1,50,000
• Tenure: 5 years lock-in
• Interest payout: For Tax Saver Silver FD, the interest is paid out monthly or quarterly. Whereas for Tax Saver Gold FD, the interest is paid at maturity.
• Premature closure: Not available
• Nomination: Available

Key Features of City Union Bank Fixed Deposit Schemes

• Premature withdrawal: All City Union Bank FDs can be withdrawn prematurely except for the tax-saving FD. However, the CUB charges a penalty for all premature withdrawals, according to their norms.
• Nomination facility: City Union Bank FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their City Union Bank FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all City Union Bank deposits. The scheme covers all City Union Bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in a City Union Bank FD once it has commenced. However, they can open a fresh City Union Bank FD with the new amount.

How to Open a City Union Bank FD Deposit Account?

One can open a City Union Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open a CUB Bank FD account through internet banking:

• Go to the City Union Bank website.
• Login to your CUB account.
• On the topmost tab, click on ‘Personal’ and select ‘Deposits’.
• Select the type of deposit you want to invest in, and the page will be redirected to the scheme’s page.
• On the FD scheme page, on the right-hand side, click on ‘Apply Now
• Fill in all the necessary details in the CUB account opening form. Provide maturity, payment, interest payout instructions.
• Verify the details and click on ‘Submit. Upon successful processing, the investor will be notified.

Through Mobile App

CUB Mobile Banking App

The following steps will guide in opening an FD account through CUB Mobile Banking App:

• Download the CUB Mobile Banking App.
• Under the ‘E-Deposits’ section, select the type of deposit account.
• Fill in all the necessary details in the CUB FD account opening form. Provide maturity, payment, interest payout instructions.
• Verify the details and click on ‘Submit. Upon successful processing, the investor will be notified.

Offline City Union Bank FD Opening

To open a CUB Bank FD account offline, one has to visit the nearest CUB Bank branch. Fill the City Union Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, CUB Bank will provide an FD receipt.

Documents Required to Open a City Union Bank FD

To open a City Union Bank fixed deposit scheme, one would need the following documents:

• City Union Bank Fixed Deposit application form
• Passport size photographs
• Government ID proof (Aadhar Card, PAN Card, etc.)
• Address proof (Aadhar Card, Driving License, and Utility bills)

Eligibility to Open a City Union Bank FD

Resident individuals and Hindu Undivided Families are eligible to open a City Union Bank FD account.

Does City Union Bank Offer Recurring Deposits?

City Union Bank offers recurring deposits to its depositors. City Union Bank recurring deposits have a minimum tenure of one year and a maximum tenure of 10 years. Depositors can open an RD account either by going to the City Union Bank branch or online using internet banking. The minimum investment in City Union Bank RD is INR 100 and thereafter in multiples of INR 100.

Is CUB FD Interest Taxable?

Only investment in City Union Bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other City Union Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from City Union Bank FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from City Union Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the City Union Bank, then the TDS rate will be 20%.