Union Bank of India Unveils Unique Monthly Plus Deposit Scheme: Details Inside

Union Bank of India has launched the 'Union Monthly Plus' scheme for debt investors who want more from their recurring deposits. This is a unique recurring deposit scheme that allows investors to raise or reduce the monthly contribution amount towards their accounts. Via its Twitter handle the bank has said that "Union Monthly Plus is a unique recurring deposit that gives you the flexibility to increase or decrease the monthly deposit amount." Using the unique Step Up and Step Down options, depositors can increase or decrease their monthly deposit amount.

Eligibility and deposit limit

The Recurring Deposit Scheme, which offers the leeway of 'Step Up' and 'Step Down' options, can be opened by an individual on behalf of his or her own name, or by multiple individuals in joint names with acceptable repayment instructions, or on behalf of a minor by his or her legal guardian. The Union Monthly Plus plan can be created on behalf of institutions, corporations, partnerships, trusts, and HUFs, and etc.

At the time of account opening, depositors must specify the monthly installment, also known as the "Core amount," and deposit the same as the initial contribution of Rs.100/- and in multiples of Rs.100/- towards their 'Union Monthly Plus' recurring deposit account. The amount can be deposited multiple times per month by the depositors. The bank's maximum monthly permitted amount is 10 times the core amount or Rs 100000/-, whichever is lower. The account can be opened for a minimum tenor of 6 months to a maximum tenor of 60 months (In multiple of 1 month).

Step Up Option and Step Down Option

During any month, depositors have the option to increase (Step Up) the monthly installment amount up to 10 times the Core Amount or initial contribution amount. The installment can be made one or multiple times in a month, up to a maximum of 10 times the Core Amount. For example, if a customer's core amount is Rs. 2000, then he or she can use the 'Step Up' facility to deposit up to Rs. 20,000 monthly.

Depositors should be aware that the highest monthly deposit amount is 10 times the core amount, or Rs 100000/-, whichever is lower. On the other hand, after increasing the monthly installment amount, a customer can decrease it (Step Down) in any following month/s, but the amount should not be less than the core amount or initial monthly installment amount.

Other benefits

The 'Union Monthly Plus' scheme also has a myriad of benefits, including no penalty for overdue installments, TDS deduction, loan facility, nomination facility, and premature account closure option, but interest will be paid for the account operated duration at the applicable rate and the bank will not charge a penalty if the account is closed prematurely.

Interest rates

The interest rate on the Union Monthly Scheme will be the same as the Term Deposit rate charged by the bank. The below-listed interest rate will be applicable on a period of 6 months to 60 months of deposits.

Period	Interest Rate p.a. (effective from 01/09/2021)
181 Days to4.40%
1 Year	5.00%
>1 Year to 2 Years	5.10%
>2 Year to 3 Years	5.30%
>3 Years to 5 Years	5.40%
Source: Bank Website