*The Rate applicable on Term Deposits less than Rs. 2 Cr. for maturity of more than 1 year to all senior citizens will be 0.50% over and above the rate payable.
The Interest Rate payable on Term Deposit less than Rs. 2 Cr. to UBI Staff and Retired Staff will be 1% over and above the applicable rate of interest on Term Deposit. The Retired Staff who are also senior citizens will get both the benefits of staff (1%) and Senior Citizen (0.50%) for Term Deposits less than Rs. 2 Cr. for more than one year tenors.
Further, Additional rate of interest as applicable to senior citizen will also be applicable (in eligible cases) to spouses of deceased employees or retired deceased employees, in addition to staff benefit.
The ex- employees who were compulsorily retired, dismissed or removed from Bank’s services as a measure of disciplinary action or even resigned from Bank’s services will not be eligible to avail of the above benefits (H.O. Circular No. PD/DIR/03/O&M-0145/06-07 date d 30.05.2006).
However, ex-employees who opted for VRS/VR are eligible to get all the staff benefits as mentioned above.
The revised rates shall be made applicable to fresh deposits and renewal of term deposits. The interest rate on UBI Tax Saving Schemes and NRE/NRO Deposits shall be aligned as per the above revised rates for Domestic Retail Term Deposits. But, no staff benefit will be applicable for United Tax Savings Deposit Scheme. The revised rates of Interest shall also be made applicable to Domestic Term Deposits from Co-operative banks. However, no additional benefit of interest rate related to Staff or Senior Citizen will be applicable on NRE/NRO deposits.
Premature Withdrawal- The instructions in respect of premature withdrawal of Retail Term Deposits will remain same as under:
- If Term Deposit is closed prematurely within 7 days from date of opening, no interest will be paid.
- If Term Deposit is closed prematurely beyond 7 days and deposit is withdrawn, 1% penalty will be levied on the rate of interest applicable for the period the deposit remained with the Bank.
- If prematurely withdrawn for reinvesting the deposit for a period longer than the residual period of the original deposit, interest will be paid at the rate applicable on the date of original deposit for the period for which the deposit remained with the Bank, without applying any penalty of 1%.
- If prematurely withdrawn for reinvesting the deposit for a period shorter than the residual period of the original deposit, penalty will be charged @ 1%.
- Minimum tenure of NRE deposit is one year and no interest is payable on premature closure of NRE term deposit before one year.
There is no discretion for reduction / waiver of penalty for premature withdrawal of Term Deposits.
Premature payment of Bulk Term Deposits: Premature penalty for Bulk Term Deposits for all tenors will be 1%. There is no discretion for reduction / waiver of penalty for premature withdrawal of Term Deposits.
Acceptance of term Deposits of Rs.2.00 Cr and above: The Branches/ RO should obtain prior clearance from GM (Treasury) for accepting term deposit of Rs. 2.00 Cr and above even at card rates.
Branches are advised to take note of the aforesaid modifications and act accordingly.