City Union Bank Fixed Deposit Rates (Updated: 2026)

1. Special FD Schemes Offered by City Union Bank

Apart from regular Fixed Deposits, City Union Bank offers a few special FD schemes designed for different financial needs.

1. CUB Flexifix Deposit

This scheme combines the benefits of an FD with the flexibility of a savings account.

• Partial withdrawal allowed in multiples of ₹5,000
• Remaining FD amount continues earning the original interest rate
• No need to break the entire FD during emergencies

Best For: Business owners, self-employed individuals, and investors who may need occasional access to money.

2. CUB Tax Saver FD

A special FD designed for tax-saving purposes.

• Lock-in Period: 5 years
• Tax Benefit: Eligible under Section 80C
• Maximum Investment: ₹1.5 lakh per financial year
• Premature withdrawal not allowed
• Loan facility not available

Best For: Salaried employees and taxpayers looking to save tax.

3. NRE/NRO/FCNR Deposits

These deposit schemes are designed for Non-Resident Indians (NRIs).

1. NRE Deposit – Interest is generally tax-free in India and Full repatriation of principal and interest allowed.
2. NRO Deposit – Suitable for income earned in India such as rent or pension. Interest is taxable as per rules.
3. FCNR Deposit – Deposit money in foreign currencies such as USD, GBP, EUR, CAD, AUD, and SGD. Helps reduce exchange rate risk

Best For: NRIs looking to safely park overseas earnings in India.

💡 Practical Tip – If you want emergency access to your money, Flexifix can be more useful than a normal FD. If your goal is saving tax, choose the Tax Saver FD. For NRIs, selecting the right deposit type (NRE, NRO, or FCNR) is often more important than simply choosing the highest interest rate.

2. Eligibility, Investment Rules & Documents Required

Before opening a City Union Bank FD, here are a few important things you should know.

1. Who Can Open a City Union Bank FD?

The following customers are eligible:

• Individual investors
• Joint account holders
• Hindu Undivided Families (HUFs)
• Proprietorship firms
• Partnership firms
• Companies and corporate bodies
• Registered trusts
• NRIs through eligible deposit schemes

2. How Much Money Do You Need to Start?

The minimum deposit depends on the customer type:

• ₹100 for individual investors
• ₹1,000 for MSMEs and business accounts
• ₹10,000 for corporate deposits

Example: If you want to start with just ₹5,000, you can easily open a retail FD without needing a large investment amount.

3. How Does the Interest Work?

City Union Bank offers two options:

• Cumulative FD: Interest is added back to the deposit every quarter and paid at maturity.
• Non-Cumulative FD: Interest can be received monthly, quarterly, or half-yearly.

Simple example: If two people invest ₹1 lakh at the same rate, the person choosing a Cumulative FD will usually receive a higher maturity amount because the interest keeps earning more interest.

4. Documents You will Need

Keep these documents ready:

• Identity Proof
  • PAN Card
  • Aadhaar Card
  • Passport
  • Voter ID
• Address Proof
  • Aadhaar Card
  • Passport
  • Utility Bill
  • Any other valid address proof accepted by the bank

In most cases, PAN and Aadhaar are enough for basic KYC verification.

💡 Quick Tip – Many people choose a Cumulative FD and then break it midway because they need money. If you think you’ll need regular cash for household expenses, pension support, or monthly bills, a Non-Cumulative FD may be the better choice from the beginning.

3. How to Open a City Union Bank FD

Opening a City Union Bank FD is simple and can be done through Internet Banking or the CUB mobile app.

Method 1: Through Internet Banking

1. Log in to your City Union Bank Internet Banking account.
2. Go to the Deposits section.
3. Choose the FD type you want, such as Regular FD, Flexifix, or Tax Saver FD.
4. Enter the deposit amount and select the tenure.
5. Choose how you want to receive interest:
   • Monthly
   • Quarterly
   • At Maturity
6. Add nominee details and review the information.
7. Submit the request to create your FD.

Method 2: Through the CUB Mobile App

1. Open the CUB All-in-One mobile banking app.
2. Log in using your MPIN or biometric authentication.
3. Tap on Open FD/RD.
4. Select the savings account from which the money will be debited.
5. Enter the FD amount and choose the tenure.
6. Check the applicable interest rate.
7. Add nominee details and confirm the FD.

Simple Example – Suppose you have ₹50,000 in your savings account. You can open an FD for 2 years directly through Internet Banking or the mobile app. Once the amount is debited, the FD is created instantly and starts earning interest from the same day.

💡 Practical Tip – Before clicking “Submit,” check whether auto-renewal is turned on. If enabled, the FD will automatically renew at the prevailing interest rate after maturity, helping you avoid keeping money idle.

4. Premature Withdrawal Rules & Deposit Safety

Before opening a City Union Bank FD, it is important to understand the withdrawal and safety rules.

1. Premature Closure Is Allowed

• If you need money before the FD maturity date, you can close the deposit early. However, the bank will usually charge a 1% penalty on the applicable interest rate.
• Example: If your FD is eligible for 7.00% interest but you close it early, the effective interest rate may come down to around 6.00% after the penalty.

2. FD Closed Within 7 Days? No Interest

• If you open an FD and close it within 7 days, the bank generally does not pay any interest on the deposit.
• The bank clears out the account with zero interest distribution.

3. Your Deposits Are Protected

• City Union Bank deposits are covered under DICGC insurance, which protects up to ₹5 lakh per depositor per bank, including eligible principal and interest.
• If you have ₹4 lakh in FD and ₹1 lakh in your savings account with the same bank, the total ₹5 lakh remains covered under DICGC rules.

💡 Quick Insight: Many people break their FD during emergencies and lose part of their interest. If possible, keep a separate emergency fund for medical expenses, repairs, or family needs so your FD can continue earning the full return.

5. City Union Bank FD vs RD: Which One Should You Choose?

Both Fixed Deposits (FDs) and Recurring Deposits (RDs) offer guaranteed returns, but they are designed for different types of savers.

Use Tools – Fixed Deposit Calculator OR Recurring Deposit Calculator

📌 Key Differences

1. FD Is Better If You Already Have Money – If you have a lump sum amount like ₹50,000 or ₹1 lakh, an FD can help you lock in a higher interest rate immediately.
2. RD Is Better for Monthly Saving – If you receive a salary every month and want to build a savings habit, an RD lets you invest a fixed amount regularly.
3. FD Offers More Flexibility – City Union Bank FDs offer multiple interest payout options, including monthly income, quarterly income, and maturity payout. Some FD schemes also allow partial withdrawal.
4. Tax Rules Are Similar – Interest earned from both FD and RD is taxable. TDS rules apply if your total interest income crosses the applicable limit during the financial year.

Frequently Asked Questions