Union Bank of India Tax Saving Fixed Deposit

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Updated 04 Sep 2023

While investing, we want to earn the maximum returns and save taxes. Tax liability is a significant responsibility of the citizens of a country, but the government offers a few relaxations on taxes via various deductions and exemptions. The Union Bank of India offers different Tax saving FD options. Read below to know more about it.

Features of Tax Saver FD Scheme of Union Bank of India

Here are some of the critical features of the Union Tax Saver FD Scheme:

The goal is to offer better returns as well as save taxes
Have a lock-in period of 5 years.
Investors can avail of income tax deductions under section 80C up to 1.5 lakhs in a year.
Loans can be availed against this scheme after 5 years of the lock-in period.
Different payout options are available, such as monthly, quarterly, or annual intervals.
You cannot prematurely withdraw these FDs before the lock-in period. If you withdraw after the minimum lock-in of 5 years but before FD maturity, you’ll have to pay a penalty.

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Documents Required to open the Tax-saving Fixed Deposit by Union Bank

Potential account holders need to submit the following documents:

Aadhaar Card
PAN Card
Passport size photographs
Proof of age (for senior citizens)

FAQs

Is a nomination facility available for Union Bank Tax Saving FD?

Yes, Union Bank provides a nomination facility for Tax Saving FDs.

Can I renew my HDFC Tax Saving FD upon maturity?

Upon maturity, you can reinvest in a new Tax Saving FD. However, it will not be automatically renewed.

How is a tax-saver FD different from a regular FD?

A tax-saving FD has a lock-in period of 5 years. No premature withdrawals, overdrafts, or loan facilities are available under a tax-saving FD. Whereas one can have a regular FD for any tenure as per the choice of an individual, and they are eligible for premature withdrawals

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