Latest UCO Bank FD Interest Rate April 2023
UCO Bank FD rates range from 2.90% to 7.20% for the general public and 3.15% to 7.70% for senior citizens. Additionally, the bank offers preferential rates to its staff and retired staff senior citizen members which is 1% to 1.50% above the normal FD rates. UCO Bank tenure can be extended to more than 5 years. The minimum amount required to open an FD account with UCO Bank is capped at Rs.1,000.
UCO Bank offers an array of fixed deposit schemes including Term Deposit Products UCO 444 and UCO 666, UCO Tax Saver Deposit Scheme – 2006, Motor Accident Claim Term Deposit Account and Flexible Fixed Deposit Scheme, among others.
UCO Bank FD Interest Rates 2023 Highlights
| Interest rate | 2.90% to 7.20% (general depositors)3.15 to 7.70% (senior citizens) |
| Tenure | 7 days to 5+ years |
| Minimum deposit | Rs.1,000 |
| Maximum deposit | No Upper Limit |
| Lock-in period | NA (5 years for tax saver) |
How to Calculate UCO Bank FD Interest Rate
There are two methods to calculate the interest on fixed deposits: simple interest and compound interest.
1. UCO Bank FD Interest Rate – Simple Interest Calculation
Simple interest refers to the interest earned on the initial principal amount at a predetermined interest rate during an investment period.
Suppose you invest Rs.1,00,000 for 5 years at an interest rate of 6.20%.
Simple Interest = (Principal x Rate x Time) / 100
Where:
Principal is the amount invested (Rs.1,00,000 in this case)
Rate is the interest rate per annum (6.20% in this case)
Time is the duration of the investment in years (5 years in this case)
Using the formula, we get:
Simple Interest = (1,00,000 x 6.20 x 5) / 100
Interest = Rs.31,000
So, the simple interest earned on the fixed deposit over 5 years is Rs. 31,000.
Maturity Value = Principal + Simple Interest = Rs. 1,00,000 + Rs. 31,000
Maturity Value = Rs. 1,31,000
2. UCO Bank FD Interest Rate – Compound Interest Calculation
Compound interest is the interest that accrues on the principal amount and any accumulated interest.
Assuming that you invest Rs. 1,00,000 for 5 years at an interest rate of 6.20% per annum, the formula to calculate the maturity value of the fixed deposit would be as follows:
M = P(1 + r/n)^(n*t)
Where: M = Maturity value, P = Principal amount (in this case, Rs. 1,00,000), r = Annual interest rate (6.20%), n = Number of times the interest is compounded in a year (in this case, yearly) and t = Number of years.
So, plugging in the values we get:
M = 1,00,000 (1 + 0.0620/1)^(1*5)
M = 1,00,000 (1.0620)^5
Maturity value = Rs.1,34,044.66
Now, to calculate the interest earned on the fixed deposit, we simply subtract the principal amount from the maturity value:
Interest = Maturity value – Principal amount
Interest = Rs. 1,34,044.66 – Rs. 1,00,000
Interest = Rs. 34,044.66
Factors that Can Affect UCO Bank Fixed Deposit Rate
Listed below are the primary factors that affect UCO Bank fixed deposit interest rates:
1. Tenure
One of the most significant factors that affect UCO Bank fixed deposit rates is the tenure of the FD. Longer-term deposits generally offer higher interest rates compared to shorter-term ones. Longer-term deposits give banks more time to use the funds and generate returns, hence offering higher interest rates.
2. Age
Senior citizens having an FD account with UCO Bank are eligible for preferential interest rates of 0.25% to 0.50% higher than standard FD rates.
3. RBI Policies
Any change in RBI’s monetary policy like repo rate hike may impact fixed deposit interest rates.
UCO Bank FD Interest Rate for General Public
UCO Bank offers interest rates ranging from 2.90% to 7.70% for general citizens. The rates vary based on the tenure that can be extended to more than 5 years. The interest rate also depends on the amount – less than Rs.2 crore deposits and more than Rs.2 crore deposits.
1. UCO Bank FD Interest Rate for Deposits Below Rs.2 Crore
| Maturity Period | Interest Rate |
| 7 to 14 days | 2.90% |
| 15 to 29 days | 2.90% |
| 30 to 45 days | 3% |
| 46 to 60 days | 4% |
| 61 to 90 days | 4% |
| 91 to 120 days | 4.50% |
| 121 to 150 days | 4.50% |
| 151 to 180 days | 5% |
| 181 to 364 days | 6% |
| 1 year | 6.75% |
| More than 1 year to 443 days | 6.50% |
| 445 to 665 days | 6.50% |
| 667 days to 2 years | 6.50% |
| More than 2 years to 3 years | 6.30% |
| More than 3 years to 5 years | 6.20% |
| Above 5 years | 6.10% |
| 444 days | 7.05% |
| 666 days | 7.20% |
2. UCO Bank FD Interest Rate for Deposit Above Rs.2 Crore
| Maturity Period | Interest Rate |
| 7 days to 14 days | 5.90% |
| 15 days to 30 days | 5.90% |
| 31 days to 45 days | 6.15% |
| 46 days to 90 days | 6.15% |
| 91 days to 180 days | 6.15% |
| 181 to 210 days | 6.15% |
| 211 days to 270 days | 6.15% |
| 271 days to 1 year | 7.20% |
| More than 1 year to 2 years | 7.20% |
| More than 2 years to 3 years | 5.50% |
| More than 3 years to 5 years | 5.50% |
| Above 5 years | 5.50% |
UCO Bank FD Interest Rate for Senior Citizens
For senior citizens, staff, ex-staff, and ex-staff senior citizens who make deposits, an additional interest rate is offered beyond the standard customer interest rate. The interest rate for staff members is 1.00% across all tenors. For senior citizens, the interest rate is 0.25% for tenures up to one year and 0.50% for tenors exceeding one year. Retired staff senior citizens can benefit from an interest rate of 1.25% for tenors up to one year and 1.50% for tenures exceeding one year.
Below is the table with information on UCO Bank Fixed Deposit interest rates for 2023.
| Maturity period | Rate % pa |
| 7 to 14 days | 3.15% |
| 15 to 29 days | 3.15% |
| 30 to 45 days | 3.25% |
| 46 to 60 days | 4.25% |
| 61 to 90 days | 4.25% |
| 91 to 120 days | 4.75% |
| 121 to 150 days | 4.75% |
| 151 to 180 days | 5.25% |
| 181 to 364 days | 6.25% |
| 1 year | 7.25% |
| > 1 year to 443 days | 7.00% |
| 445 to 665 days | 7.00% |
| 667 days to 2 years | 7.00% |
| > 2 years to 3 years | 6.80% |
| > 3 to 5 years | 6.70% |
| Above 5 years | 6.60% |
| 444 days | 7.55% |
| 666 days | 7.70% |
UCO Bank VS Other Banks’ FD Interest Rate
The table below compares UCO Bank FD interest rates 2023 with other banks’ interest rates for 5-years and above tenure. We have considered deposits below Rs 2 crore as the benchmark here.
| Name of the Bank | Interest Rate Range |
| Central Bank of India | 4.00% to 7.25% |
| State Bank of India | 3.00% to 7.50% |
| Karnataka Bank | 4.5% to 7.80% |
| Union Bank of India | 3.00% to 7.80% (0.5% higher for senior citizens) |
| Bank of Baroda | 3.00% to 7.50% |
| Punjab National Bank | 3.50% to 7.75% |
| Bank of India | 3.00% to 7.65% |
| Citibank | 3.50% to 8.01% |
| IDFC First Bank | 3.50% to 8.25% |
| Indian Overseas Bank | 4.30% to 7.75% |
| Deutsche Bank | 3% to 7.75% |
| HDFC Bank | 3.00% to 7.75% |
| Axis Bank | 3.50% to 8.01% |
| ICICI Bank | 3.00% to 7.60% |
| Kotak Mahindra Bank | 2.75% to 7.70% |
| Paytm Payments Bank | 2.75% to 5.5% |
| DBS Bank | 2.5% to 8% |
| IndusInd Bank | 3.50% to 8.25% |
| RBL Bank | 3.50% to 8.30% |
| Sundaram Finance | 7.45% to 8.25% |
| Canara Bank | 4.00% to 7.75% |
| Punjab and Sind Bank | 2.80% to 7.60% |
| IDBI Bank | 3.00% to 7.25% |
| HSBC | 2.85% to 8% |
| Indian Bank | 2.90% to 7.20% |
| Yes Bank | 3.25% to 8.00% |
| Bandhan Bank | 3.00% to 8.50% |
| Federal Bank | 3.00% to 7.75% |
**The maximum rates in the table are only applicable to senior citizens.
This table is for educational purposes only. Navi neither endorses any of the products mentioned above nor takes responsibility for the data mentioned.
Features and Benefits of UCO Bank FD
Here are the key features and benefits of UCO Bank fixed deposits:
1. Flexible Interest Payment Options
UCO Bank Fixed Deposits offer the choice of either monthly discounted or quarterly payments under the Regular Income Scheme, or cumulative interest on maturity under the Kuber Yojna or Deposit Certificate Scheme.
2. Incentive Rates for Senior Citizens
Senior citizens above can enjoy incentive interest rates on their fixed deposits, regardless of the deposit size and periodicity.
3. Premature Withdrawal and Extension
UCO Bank fixed deposits allow for premature withdrawal with an applicable penalty and the option to extend the deposit term without penalty, provided the deposit is held for a period longer than the remaining period of the original contract.
4. Transfer and Renewal Options
Depositors can transfer their fixed deposit account from one branch to another due to a change in their residence or workplace. On maturity, they also have the option to renew their deposit for a further period, change the period or amount of deposit, and add or delete joint account holders.
5. Loan Against Fixed Deposit
Depositors can avail of loans or advances against their fixed deposits, subject to the bank’s rules.
6. Nomination Facility
UCO Bank enables depositors to nominate an individual to receive the deposit proceeds upon maturity in the event of the unfortunate death of the deposit holder.
7. Overdue Fixed Deposit Rules
In case the customer neither obtains payment nor renews the fixed deposit, even though the term is over, it is called an overdue fixed deposit. Renewal is carried out at the prevailing interest rate on the date of maturity, provided the overdue period does not exceed 14 days from the date of maturity.
Also Read
Types of UCO Bank FD Schemes
- Term Deposit Product UCO 1000 For 1000 Days
- Kuber Yojana
- UCO Monthly Income Scheme
- UCO Tax Saver Deposit Scheme – 2006
- Flexible Fixed Deposit Scheme
- Motor Accident Claim Term Deposit Account
- Term Deposit Scheme UCOVAXI – 999 For 999 Days
1. Term Deposit Product UCO 1000 For 1000 Days
- Minimum deposit: Rs.10,000
- Maximum deposit: Less than Rs. 2 crore
- Tenure: 1000 days
- Interest rate: 30 basis point over card rate being 5.40 % pa, with interest being compounded quarterly.
- Eligibility: Eligible depositors under the scheme will be the same as eligible depositors in the regular fixed deposit scheme
2. Kuber Yojana
- Minimum deposit: Rs.10,000
- Maximum deposit: Less than Rs. 2 crore
- Tenure: 1000 days
- Interest rate: 30 basis point over card rate being 5.40 % pa, with interest being compounded quarterly.
- Eligibility: Eligible depositors under the scheme will be the same as eligible depositors in the regular fixed deposit scheme
3. UCO Monthly Income Scheme
- Minimum deposit: Rs. 50,000
- Maximum deposit: Rs. 100 lakhs
- Tenure: 5 years
- Interest rate: As applicable under the regular fixed deposit for 5 years
- Eligibility: It remains the same as in the regular fixed deposit scheme.
4. UCO Tax Saver Deposit Scheme – 2006
- Minimum deposit: Rs.100
- Maximum deposit: Rs.1.5 lakh in a given year
- Tenure: 5 years
- Interest rate: 5% for general customers and 5.50% for senior citizens, staff, ex-staff, and ex-staff who is also senior citizen
- Eligibility: Individuals or HUFs
5. Flexible Fixed Deposit Scheme
Under this fixed deposit scheme, customers can make deposits through a reinvestment plan. This scheme allows for partial withdrawals from the account without affecting the remaining balance, which will continue to accrue interest at the agreed interest rate. Customers can withdraw in increments of Rs. 5,000.
- Minimum deposit: NA
- Maximum deposit: NA
- Tenure: NA
- Interest rate: NA
- Eligibility: NA
6. Motor Accident Claim Term Deposit Account
- Minimum deposit: As per the court order (no limitations on deposit amount)
- Maximum deposit: As per the court order (no limitations on deposit amount)
- Tenure: As per the court order (no limitations on tenure)
- Interest rate: Applicable as per court order
- Eligibility: Beneficiaries or victims of motor accidents (as per court order)
7. Term Deposit Scheme UCOVAXI – 999 For 999 Days
- Minimum deposit: Rs.5,000
- Maximum deposit: Less than Rs. 2 crore
- Tenure: 999 days
- Interest rate: 5.30% pa, compounded quarterly
- Eligibility: Individuals who have undergone covid-19 vaccination
How to Invest in UCO Bank FD
You can follow the steps given below to apply for a fixed deposit with UCO Bank:
- Step 1: Visit the nearest UCO Bank branch.
- Step 2: Request an application form for a fixed deposit account.
- Step 3: Fill out the application form with accurate details.
- Step 4: Submit the application form to the bank for further processing.
- Step 5: Deposit a cheque for the chosen amount along with the application form.
- Step 6: Provide the necessary identity and address proof details to the bank officials for verification.
- Step 7: Wait for the successful verification of the submitted details by the bank officials.
- Step 8: The UCO Bank FD account will be opened once verified.
Documents Required to open UCO Bank FD
You will need the following documents to open a UCO Bank fixed deposit account:
- UCO Bank FD application form
- KYC documents, including (Aadhaar card, PAN card, etc.)
- Passport size photographs
Eligibility to Open UCO Bank FD
You can open a UCO Bank fixed deposit account if you are one of the following:
- Individual resident
- Minor (aged 10 and above) with an appointed guardian
- Hindu Undivided Families (HUFs)
Taxation on UCO Bank FD Deposit Scheme
- If you invest in UCO Bank Tax Saver Fixed Deposit, you can save on your income tax under Section 80C of the Income Tax Act, 1961. However, regular UCO Bank fixed deposits do not offer tax savings.
- The interest you earn on your UCO Bank fixed deposit is also subject to income tax based on the applicable tax rates. If your interest income from UCO Bank fixed deposits is more than Rs.40,000 per year, a 10% TDS will be charged. However, this limit is increased to Rs.50,000 per year if you are a senior citizen. If you fail to provide your PAN card details to the bank, the TDS rate will be 20%.
However, you can claim tax deduction benefits up to Rs.1.5 lakh on UCO Bank tax-saver deposits. Note that the lock-in period for the tax-saving fund is 5 years.
Loan against UCO Bank FD Deposit Scheme
UCO Bank lets depositors borrow money using their fixed deposits as collateral. However, this option is not available for tax-saving fixed deposit schemes. For all other types of fixed deposits, the bank allows depositors to take out a loan of up to 90% of the deposit amount.
Final Word
UCO Bank fixed deposit schemes offer a reliable and secure investment option with attractive interest rates that can provide steady returns for investors. Whether you are looking to save for a short-term goal or a long-term investment, UCO Bank’s fixed deposit schemes can provide a flexible and convenient way to grow your savings. It’s always wise to compare interest rates and terms of different banks before investing. However, UCO Banks fixed deposit schemes are worth considering for anyone looking for a safe and rewarding investment opportunity.
FAQs
The UCO Bank FD rate ranges from 2.90% to 7.20% for regular customers and 7.70% for senior citizens. The interest rates can vary depending on the tenure and fixed deposit scheme you opt for.
The UCO Bank FD interest rate for 666 days is 7.70% annually.
Yes. The UCO Bank enables depositors to take a loan against their fixed deposits. They can take a loan of up to 90% of the deposit amount.
Yes. The UCO Bank allows depositors to make premature withdrawals. However, premature withdrawals are subject to charges and reductions in interest rates.
Yes. If your interest income from a UCO Bank fixed deposit is more than Rs. 40,000 (Rs. 50,000 for senior citizens) annually, a 10% TDS will be charged. The TDS is deducted at 20% if the PAN card is not furnished.
Yes. Senior citizens earn up to 0.50% higher interest on fixed deposits than general customers. The maximum interest rate UCO Bank offers on fixed deposits for senior citizens is 7.70% annually.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
