Union Bank FD Scheme : Union Bank Launches 333-Day FD scheme, Offering Bumper Interest and Returns.

What does the scheme offer?

Tenure: 333 days.
Deposit amount: Minimum ₹1,000; Maximum up to ₹3 crore (for this scheme) for deposits under this slab.
Interest rates (approximate):
- For general customers: ~ 7.40% p.a.
- For senior citizens: ~ 7.90% p.a.
- For “super senior” citizens: ~ 8.15% p.a.
Interest calculation & payout: The interest is calculated on a daily product basis, compounded quarterly, and credited either at half-yearly intervals or along with principal on maturity.
Premature withdrawal / closure: Allowed, but interest will be paid at 1 % lower than the contracted rate (or the rate applicable for the period, whichever is lower) if the deposit is closed early.

Why the 333-day tenure is interesting

Shorter than one year but longer than typical 6- or 9-month deposits. It offers a sweet-spot tenure for investors who want more than short-term (few months) parking but may not want to commit for full years.
Higher than normal FD rates. Standard FDs of 1-year or so at many banks may offer significantly lower rates; this 333-day scheme stands out with a “bumper” rate. For example, for general FDs in the bank for similar tenures (below ₹3 crore) the typical rate is around ~6.4%-6.6% p.a. or less.
Clear time-horizon. 333 days is less than 12 months, so maturity happens before the next yearly cycle; might be useful for cash-flow planning or aligning with tax/financial year boundaries.

Who should consider this scheme?

Individuals seeking safe investments (low risk) and willing to lock funds for ~11 months.
Senior citizens and super seniors looking for higher interest (the bonus for their category).
Investors who anticipate needing the funds in ~1 year or slightly less, and prefer a defined term rather than rolling monthly deposits.
Those comparing fixed deposit options and seeking a relatively higher return for a short-term lock-in.

Key points / things to keep in mind

Check the validity of the offer: Such “special tenor” schemes can be promotional or time-bound, so the exact interest rate, eligibility and cutoff may change.
Deposit limit / slabs: The maximum ₹3 crore applies for the slab mentioned. Larger deposits may attract different (usually lower) rates.
Premature withdrawal impact: If you withdraw before maturity, the interest rate reduces by ~1 %. So only lock in this tenor if you are comfortable not needing the funds before ~333 days.
Taxation: The interest earned will be taxable as per your income tax slab. TDS rules may apply if interest crosses threshold.
Auto-renewal caution: On maturity, unless specified, the deposit may auto-renew at prevailing regular FD rates (which may be lower than this special rate).
Compare with other FDs / instruments: Just because the rate is higher for this tenure doesn’t guarantee it’s the best if you can afford longer tenure or different instruments (e.g., recurring deposits, other banks, small-finance banks) with better risk/return profiles.
Rate environment: Interest rates in general depend on overall banking and economic conditions; if market rates fall or rise, banks may revise their FD schemes.

Final verdict

The Union Bank of India’s 333-day special FD scheme is a strong option for those looking for a safe, short-term deposit with a relatively attractive interest rate. The ~7.4%-8.15% p.a. range (depending on category) makes it compelling compared to many standard FDs at the time of offer. If you have funds you can park without needing them for ~11 months and you are comfortable with the bank’s terms, this is worth serious consideration.

However — as always with any financial product — do your homework: Check the current rate and terms (since these can change), compare with alternative investments, ensure the deposit matches your liquidity needs, and factor in tax implications.

If you like, I can check the latest live rate of the scheme (and whether it is still active) for you as of today, and show how the maturity amount would work for various deposit sums. Would you like me to do that?

yes

Here are the latest publicly-available rates for the special 333-day FD from Union Bank of India (UBI) — and an approximate estimate of the maturity amount you’d get — along with caveats that you should check before investing.

📊 Current rates

For general (regular) depositors, UBI’s standard FD rate for ~333 days (tenure of “333 days to less than 1 year” or “333 days”) is ~ 7.00% p.a. according to some sources.
For senior citizens (60 +), the rate is about ~ 7.50% p.a. for 333 days.
A special earlier scheme (called “333-Day Special FD” or “Union Sumvridhi 333 day FD”) had higher rates: ~ 7.40% for general, 7.90% for senior, and 8.15% for super-senior citizens.
Note: For deposits under ₹3 crore.
Recent public listings show the regular FD table (for < ₹3 crore) uses ~ 6.60% p.a. for many tenures around 333 days.

So, you should verify with the bank whether your 333-day deposit qualifies under the special scheme (with ~7%+ rates) or under the standard rate (~6.6% or so) which is currently shown.

🔍 Example calculation

Let’s assume two cases: (a) you get the higher special rate 7.40% p.a. (regular), (b) you get the standard ~6.60% p.a.

Principal (₹)	Rate 7.40%	Estimated Maturity (approx)	Rate 6.60%	Estimated Maturity (approx)
₹1,00,000	7.40%	~ ₹1,00,000 × (1 + 0.074 × 0.912) ≈ ₹1,06,800	6.60%	~ ₹1,06,000
₹5,00,000	7.40%	~ ₹5,34,000	6.60%	~ ₹5,30,000
₹10,00,000	7.40%	~ ₹10,68,000	6.60%	~ ₹10,60,000

Notes:

These are simple approximations assuming interest accrues pro-rata for 333 days at that annual rate; actual compounding (if quarterly) might slightly increase the amount.
Put differently: at 7.40%, you might earn ~6.8% effective for 333 days; at 6.60%, ~6.0% effective.
These figures exclude tax/deductions, and assume you hold to maturity.

✅ What you should check

Whether this 333-day special FD scheme is still offered (with the higher rate) or has been withdrawn/expired. The special scheme was announced earlier.
Which rate slab applies (deposit amount, senior citizen status, etc). The higher rates applied for deposits up to ₹3 crore under the special scheme.
Whether you are eligible for “senior citizen” or “super senior citizen” bonus.
The rate for your exact tenure: 333 days; some tables show slightly different rate for “333 days to <1 year”.
Premature withdrawal penalty (typically interest will be 1% lower if you close early).
Tax/TDS implications (interest earned is taxable).
Whether the deposit auto-renews at lower rate on maturity if you do not withdraw.

Search This Blog

Sparcminds.media