Union Bank FD Scheme: How Much Will You Get on Maturity for a Rs 5 Lakh Deposit in 333 Days?

Fixed Deposits (FDs) are among the most trusted investment options in India, offering safe and predictable returns. Among the various banks offering competitive interest rates, Union Bank of India’s 333-day Fixed Deposit scheme has gained popularity. But how much will you get on maturity if you deposit ₹5 lakh in this scheme? Let’s break it down in an easy-to-understand way.

Union Bank FD Scheme

Feature	Details
Bank	Union Bank of India
FD Tenure	333 Days
Deposit Amount	₹5,00,000
Interest Rate (as of 2025)	6.35% p.a.
Maturity Amount	₹5,28,975.34
Total Interest Earned	₹28,975.34
Official Website	Union Bank of India

The Union Bank of India 333-day FD scheme is an excellent short-term investment option for individuals looking for safe and stable returns. By depositing ₹5 lakh, you can earn approximately ₹28,975.34 in interest, bringing your total maturity amount to ₹5,28,975.34. Before investing, consider factors like premature withdrawal penalties, tax implications, and liquidity needs. Always check the latest interest rates on the official website or visit a branch for personalized assistance.

Understanding Fixed Deposits (FDs) and Their Benefits

A Fixed Deposit (FD) is a secure investment where you deposit money with a bank for a fixed period and earn interest. Unlike stocks or mutual funds, FDs offer guaranteed returns, making them a risk-free investment for individuals looking to grow their savings safely.

Benefits of Investing in an FD

• Guaranteed Returns: Your principal amount remains safe, and you earn a fixed interest rate.
• Flexible Tenures: Choose between short-term and long-term deposits.
• Higher Interest Rates than Savings Accounts: Earn more compared to regular savings account deposits.
• Loan Against FD: You can get a loan against your FD in case of emergencies.
• Tax Benefits: Some FD schemes offer tax-saving benefits under Section 80C of the Income Tax Act.

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How Much Will You Get on Maturity for a ₹5 Lakh Deposit in 333 Days?

Union Bank of India currently offers 6.35% p.a. interest on FDs for 333 days (for deposits below ₹3 crore). To calculate the maturity amount, we use the simple interest formula:

Interest Earned=Principal×Rate×Time\text{Interest Earned} = \text{Principal} \times \text{Rate} \times \text{Time}

Breaking Down the Calculation

• Principal (P): ₹5,00,000
• Interest Rate (R): 6.35% per annum = 0.0635
• Time (T): 333 days = 333/365 years ≈ 0.9123

Interest Earned=5,00,000×0.0635×0.9123\text{Interest Earned} = 5,00,000 \times 0.0635 \times 0.9123

≈28,975.34\approx 28,975.34

Final Maturity Amount

Maturity Amount=Principal+Interest Earned\text{Maturity Amount} = \text{Principal} + \text{Interest Earned}

5,00,000+28,975.34=5,28,975.345,00,000 + 28,975.34 = 5,28,975.34

So, at the end of 333 days, your investment of ₹5,00,000 will grow to ₹5,28,975.34.

How to Open a Union Bank FD?

Opening a Fixed Deposit with Union Bank of India is simple and can be done online or by visiting the nearest branch. Here’s a step-by-step guide:

1. Online Method (via Net Banking or Mobile App)

1. Log in to your Union Bank Internet Banking or Mobile Banking app.
2. Navigate to the Fixed Deposits section.
3. Select “Open FD” and choose the 333-day tenure.
4. Enter the deposit amount (₹5,00,000).
5. Confirm your nominee details (optional but recommended).
6. Complete the transaction by authorizing payment from your linked savings account.

2. Offline Method (Branch Visit)

1. Visit your nearest Union Bank of India branch.
2. Request an FD application form from the bank executive.
3. Provide KYC documents (Aadhaar, PAN, etc.).
4. Fill in the deposit amount and tenure (333 days).
5. Submit the form and deposit the amount via cheque or bank transfer.
6. Collect your FD receipt as proof of investment.

Factors to Consider Before Investing in an FD

While FDs are safe investments, there are some key points to consider:

1. Interest Rate Fluctuations

• Banks revise FD interest rates periodically based on RBI policies and market conditions.

2. Premature Withdrawal Penalty

• If you break your FD before 333 days, you may lose out on the promised interest rate.
• A penalty of 0.5% to 1% might be charged for early withdrawal.

3. Tax Deduction on FD Interest

• Interest earned on FDs above ₹40,000 per year (₹50,000 for senior citizens) is taxable under TDS (Tax Deducted at Source).
• To avoid TDS deductions, submit Form 15G/15H if your total income is below the taxable limit.

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Union Bank FD Scheme FAQs

1. Is Union Bank FD safe?

Yes. Union Bank of India is a government-backed bank, and deposits up to ₹5 lakh are insured under DICGC (Deposit Insurance and Credit Guarantee Corporation).

2. Can I withdraw my FD before 333 days?

Yes, but premature withdrawal penalties may apply, and you may receive a lower interest rate.

3. What happens if I don’t withdraw the FD amount after maturity?

If you do not withdraw the amount, the FD may be automatically renewed for the same tenure at the prevailing interest rate.

4. Is the interest rate fixed for the entire tenure?

Yes, once you open the FD, the interest rate remains fixed for the entire 333-day period.

5. Can I get a loan against my Union Bank FD?

Yes, you can avail up to 90% of your FD amount as a loan without breaking the deposit.