Union Bank FD Scheme : Union Bank of India has recently launched an innovative fixed deposit scheme for retail investors called the Union Wellness Deposit. The idea behind this scheme is to offer the usual safety and interest returns of a term deposit, plus additional benefits in the health insurance and lifestyle space. Below are the full details of how it works, who is eligible, what benefits you get, and what interest rates apply.
Union Bank FD Scheme : What is the “Union Wellness Deposit”?
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The Union Wellness Deposit is a fixed‑term deposit product with tenure of 375 days.
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It is targeted at resident individuals (i.e. Indian residents) in the age group 18 to 75 years.
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The deposit can be held in a single account or joint account, though in joint account mode, insurance cover is limited only to the primary account holder.
Union Bank FD Scheme : Amounts & Investment Limits
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The minimum deposit required under this scheme is ₹10 lakh.
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The maximum limit under the scheme is ₹3 crore.
Union Bank FD Scheme : Interest Rates
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For a 375‑day tenure, normal/regular resident individual investors will get an interest rate of 6.75% per annum.
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Senior citizens (residents aged 60 years or more) will be given an additional 0.50% over the regular rate. That means senior citizens will earn 7.25% p.a. under this scheme.
Union Bank FD Scheme : Extra Benefits (Beyond Interest)
What makes this deposit scheme special are the bundled benefits:
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Health Insurance Cover
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It includes a Super Top‑up Health Insurance cover of ₹5 lakh for the same period of 375 days.
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The insurance comes with cashless hospitalisation facilities.
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Lifestyle Benefits
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Investors will also receive lifestyle perks via a RuPay Select Debit Card.
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Flexibility
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Premature closure of the deposit is allowed under certain conditions.
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The scheme also allows loan/overdraft against the fixed deposit.
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Union Bank FD Scheme : Eligibility & Other Conditions
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Age must be between 18 and 75 years.
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For joint accounts: the insurance benefit only covers the primary account holder.
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The scheme applies only to resident individuals. Non‑resident depositors are not eligible for certain benefits like the health insurance cover.
Union Bank FD Scheme : Interest Rate Comparison & Senior/Super‑Senior Benefits (General UBI Policy)
It is also useful to note the general policy of Union Bank with regard to senior citizens in its regular term deposit schemes:
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Union Bank offers an additional interest component of 0.50% over the normal rate for senior citizens in its domestic term deposit schemes.
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For super senior citizens (age 80+), the extra component is 0.75% over the normal rate.
Putting It All Together
So, summarizing with all figures:
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Regular investor (age 18‑75): 6.75% p.a. for 375 days.
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Senior citizen (60+ years): 6.75% + 0.50% = 7.25% p.a. for the same tenure.
The investment range is from ₹10 lakh to ₹3 crore. The scheme offers health insurance of ₹5 lakh, lifestyle benefits via RuPay Select Debit Card, cashless hospitalization, and flexibility in terms of premature withdrawal and loan against deposit.
Advantages and Things to Keep in Mind
Advantages:
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Good interest rate in the 375‑day fixed deposit bracket, especially with the senior citizen bonus.
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Added health cover reduces risk of large medical expenses.
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Lifestyle benefits (card perks) add extra non‑monetary value.
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Flexibility: ability to close prematurely or take a loan against the FD improves liquidity.
Things to check / consider:
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In joint accounts, only the primary holder is covered under health insurance—if the secondary holder is also elder, that may matter.
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Penalties or reduced benefits may apply for premature withdrawal—check the bank’s exact terms.
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The effective annual yield (after taxes, if any) might be lower depending on your tax bracket.
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Even though maximum limit is ₹3 crore, you’d want to verify branch availability and documentation for large deposit amounts.
