A recurring deposit is an investment cum savings option for those who want to save regularly over a certain period of time and earn a higher interest rate. It is a type of term deposit which allows one to save a fixed amount of money every month systematically. If you are familiar with SIP in Mutual Funds, RD works similarly in banking. Every month, a fixed amount of money is deducted either from a savings or a current account. And, at the end of the maturity, investors are paid back their invested money with accrued interest.
A user willing to open an recurring deposit account with the Union Bank of India can choose any amount and term according to your convenience.
Here's the list of RD Interest Rates of Union Bank of India:
|Period||Rates for Regular Deposit||Rates for Senior Citizen|
|181 days to less than a year||4.40%||4.40%|
|1 year 1 day to 2 years||5.10%||5.10%|
|2 years 1 day to 3 years||5.30%||5.80%|
|3 years 1 day to 5 years||5.40%||5.40%|
|5 years 1 day to 10 years||5.50%||5.50%|
Investment Amount:₹180,000 Interest Earned:₹21,474 Maturity Amount: ₹201,474
Maturity Amount: ₹201,474
Here are the two schemes of Union Bank of India.
This is the traditional RD scheme of UBI with attractive features. The monthly deposit amount of this scheme is as low as INR 50 with a deposit Range of six months to 120 months. Additionally, the interim discontinuation of monthly investment can be converted to a fixed deposit with a valid reason. So, you can use it as a FD account for the rest of the term.
The 'Union Monthly Plus' scheme is flexible in Investing amount as per the convenience of the user. An account holder of a recurring deposit in the Union Bank of India can increase the monthly deposit in the multiples of core amount. There is no penalty either on premature withdrawals nor on late payments.
Some of interesting features of the recurring deposit offered by Union Bank of India are:
Talk to our investment specialist
A Recurring Deposit calculator is a good way of calculating maturity amount on RD. You can follow this method to estimate your RD amount on maturity.
|Monthly Deposit Amount||500|
|RD in month||60|
|Rate of Interest||7%|
|RD Maturity Amount||INR 35,966|
|Interest Earned||INR 5,966|
Systematic Investment plan (SIP) is a way to put your money in mutual funds. Investment can be done on a periodic basis - daily, weekly, monthly or quarterly
You need to deposit a small amount of money at every interval. The minimum amount can be as low as INR 500
SIPs can help in all kinds of investment goals, whether short- or long –term, depending on the frequency of investment, funds chosen and other factors
SIPs offer flexible instalment plans of daily, weekly, monthly, quarterly etc
Returns can be earned better here. The longer you invest via a SIP in mutual funds, especially in an Equity Fund, the higher are the chances to earn good returns
To Cancel SIP, the investors can simply close their investment and withdraw their money without any penal charges
Here's a list of best performing equity SIPs for an investment horizon of
five years and above
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) Principal Emerging Bluechip Fund Growth ₹183.316
₹3,124 100 2.9 13.6 38.9 21.9 19.2 IDFC Infrastructure Fund Growth ₹31.358
₹761 100 16.2 27 32.6 35.3 13.8 1.7 Franklin Build India Fund Growth ₹86.9229
₹1,486 500 15.6 23.6 31.8 34.9 16.1 11.2 L&T Emerging Businesses Fund Growth ₹59.5566
₹10,766 500 15.7 25.9 31.5 40.1 17.1 1 L&T India Value Fund Growth ₹72.0342
₹9,077 500 13.8 19.4 27.4 27.3 13.8 5.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Dec 21
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