March 27, 2026
Union Bank of India Banking Guide: Services & Accounts
Union Bank of India is one of India’s major public sector banks with a long history in the country’s banking sector. The bank was established in 1919 in Mumbai and later nationalised in 1969, when the Government of India brought several large banks under public ownership to expand financial access across the country.
Union Bank has grown significantly over the decades. After the 2020 merger with Andhra Bank and Corporation Bank, it became one of the largest public sector banks in India. Today, the bank serves millions of customers including individuals, farmers, small businesses and large enterprises.
The bank operates a wide nationwide network of more than 8,000 branches and over 11,000 ATMs, covering urban, semi-urban and rural areas across most districts of India. Along with its physical network, Union Bank has invested in digital banking platforms such as the U-Mobile banking app and internet banking to enable customers to manage their finances online.
All banks in India, including Union Bank, operate under regulations issued by the Reserve Bank of India under the Banking Regulation Act, 1949. Deposits held in Indian banks are insured up to ₹5 lakh per depositor by the Deposit Insurance and Credit Guarantee Corporation.
Savings and Deposit Accounts
Savings accounts are the most common banking product offered by Union Bank of India. These accounts allow customers to store money securely while earning interest.
Features of Savings Accounts
General features include,
- ATM / debit card access
- Internet banking and mobile banking
- SMS transaction alerts
- Online fund transfers
- Bill payment and recharge services
Savings accounts are available for different customer groups such as:
- Students
- Salaried professionals
- Senior citizens
- Women customers
- Small depositors
Minimum Balance Requirements
| Location Type | Minimum Balance |
|---|---|
| Metro / Urban | ₹1,000 – ₹2,000 |
| Semi-Urban | ₹500 – ₹1,000 |
| Rural branches | ₹500 |
Some accounts such as Basic Savings Bank Deposit Accounts (BSBDA) allow customers to maintain zero balance, supporting financial inclusion initiatives.
Savings Account Interest Rate
Savings deposits usually earn around
~2.75% – 3% per year
Interest is generally calculated daily and credited quarterly.
Opening a bank account requires Know Your Customer (KYC) verification as required by the Reserve Bank of India.
Common KYC documents include:
- PAN card
- Aadhaar card
- Passport or voter ID
- Address proof
Fixed Deposits and Recurring Deposits
Customers who want higher returns compared to savings accounts can use term deposit products offered by Union Bank.
Fixed Deposits (FD)
In a fixed deposit, customers invest a lump sum amount for a fixed period.
FD Tenure
FD tenures typically range from,
7 days to 10 years
Indicative FD Interest Rates
| Tenure | General Public | Senior Citizens |
|---|---|---|
| 7–45 days | ~3.0% | ~3.5% |
| 46–90 days | ~4.0% | ~4.5% |
| 91–180 days | ~4.5% | ~5.0% |
| 181 days – 1 year | ~5.5% | ~6.0% |
| 1–3 years | ~6.5% – 7.0% | ~7.0% – 7.5% |
| 3–5 years | ~6.75% | ~7.25% |
| 5-year tax saving FD | ~6.75% | ~7.25% |
- Senior citizens receive 0.5% additional interest
- Minimum FD amount is usually ₹10,000
- Premature withdrawals may attract 0.5% – 1% penalty
Tax-saving fixed deposits with a 5-year lock-in qualify for deductions under Section 80C of the Income Tax Act.
Recurring Deposits (RD)
Recurring deposits allow customers to save a fixed amount every month.
Key features,
- Tenure ranges from 6 months to 10 years
- Interest rates similar to fixed deposits
- Suitable for disciplined savings
Loans and Credit Services
Retail lending is an important part of Union Bank’s operations. The bank provides loans to help customers finance major life goals such as purchasing homes, education or vehicles.
Common Retail Loans
| Loan Type | Purpose |
|---|---|
| Home loans | Buy or build a house |
| Education loans | Higher studies in India or abroad |
| Personal loans | Medical needs, travel or emergencies |
| Vehicle loans | Cars and two-wheelers |
| Gold loans | Loans against jewellery |
| Loan against property | Loans secured by real estate |
Interest Rate Ranges (Indicative)
| Loan Type | Interest Rate Range |
|---|---|
| Home loan | ~8.5% – 10.5% |
| Personal loan | ~11% – 16% |
| Vehicle loan | ~9% – 13% |
| Gold loan | ~8% – 12% |
Most retail loans are linked to the External Benchmark Lending Rate (EBLR), which tracks policy rates set by the Reserve Bank of India.
Typical processing fees range from 0.25% to 2% of the loan amount.
Loan eligibility usually depends on:
- Income level
- Employment stability
- Credit score (often 700+)
- Existing debt obligations
Digital Banking Services
Union Bank has expanded its digital banking services to improve convenience and reduce branch visits.
U-Mobile Banking App
The U-Mobile App allows customers to:
- Check account balances
- Transfer funds
- Pay bills and recharge services
- Apply for loans and credit cards
- Manage investments
The app supports UPI payments for instant transfers.
Internet Banking
Internet banking allows customers to
- View account statements
- Transfer funds between banks
- Pay utility bills
- Manage debit and credit cards
These services are available 24/7.
Payments and Money Transfers
Union Bank supports several digital payment systems widely used in India.
| Payment System | Description |
|---|---|
| UPI | Instant mobile payments |
| IMPS | Immediate bank-to-bank transfers |
| NEFT | Batch-based fund transfers |
| RTGS | Large-value real-time transfers |
UPI and IMPS are operated by the National Payments Corporation of India, while all payment systems operate under guidelines issued by the Reserve Bank of India.
UPI transfers generally allow daily transaction limits up to ₹1 lakh or more depending on the bank and app.
Debit and Credit Cards
Union Bank provides both debit and credit cards for payments and ATM withdrawals.
Debit Cards
Debit cards are linked to savings accounts and allow customers to:
- Withdraw cash from ATMs
- Pay at shops and online
- Make UPI-linked transactions
Typical ATM withdrawal limits range from,
₹25,000 – ₹1,00,000 per day,depending on the card type.
Credit Cards
Union Bank offers credit cards in partnership with major payment networks.
Typical credit card charges include:
| Charge | Range |
|---|---|
| Joining fee | ₹500 – ₹3,000 |
| Annual fee | ₹500 – ₹3,000 |
| Interest rate | ~36% – 42% annually |
| Late payment penalty | ₹100 – ₹1,200 |
Credit cards may offer benefits such as,
- Reward points
- Cashback offers
- Travel benefits
Charges and Fees (Indicative)
Like most banks, Union Bank of India charges fees for certain services.
| Service | Charges |
|---|---|
| Minimum balance penalty | ₹100 – ₹300 |
| ATM withdrawal beyond free limit | ₹21 + GST |
| Debit card annual fee | ₹150 – ₹300 |
| Cheque return charges | ₹250 – ₹500 |
| SMS alert charges | ₹15 – ₹25 per quarter |
Charges vary depending on the account type and banking service used.
Union Bank vs Other Banks
| Feature | Union Bank | HDFC Bank | SBI |
|---|---|---|---|
| Bank Type | Public sector | Private sector | Public sector |
| Savings interest | ~2.75–3% | ~3–3.5% | ~2.7% |
| Minimum balance | ₹500–₹2,000 | ₹5,000–₹10,000 | ₹0–₹3,000 |
| Branch network | Large | Very large | Largest in India |
| Digital banking | Moderate | Strong | Moderate |
Public sector banks such as State Bank of India and Union Bank generally have strong rural reach, while private banks such as HDFC Bank often focus more on premium services and digital innovation.
Customer Support and Complaint Resolution
Union Bank provides several support channels.
Customer Care Numbers
- 1800 22 2244 – Main contact centre
- 1800 102 3434 – Retail banking support
- 080-22223444 – Standard charges apply
Email support:
customercare@unionbankofindia.com
contactcentre@unionbankofindia.com
contactcentre@unionbankofindia.com
Customers can escalate unresolved complaints to the Reserve Bank of India under the Banking Ombudsman Scheme.
Safe Banking Tips
Customers should follow these precautions:
- Never share OTP, PIN, CVV or passwords with anyone.
- Avoid clicking suspicious links in SMS or emails.
- Verify suspicious calls by contacting official customer care numbers.
The Reserve Bank of India regularly publishes cyber safety guidelines to help customers prevent fraud.
Who Should Choose Union Bank of India?
Union Bank may be suitable for,
- Customers looking for public sector bank stability
- Individuals in semi-urban and rural areas with branch access
- Customers seeking simple savings accounts and affordable loans
However, customers prioritising advanced digital banking and premium services may prefer private banks such as HDFC Bank or ICICI Bank.
FAQs
What types of accounts does Union Bank of India offer?
Union Bank offers savings accounts, salary accounts, senior citizen accounts, fixed deposits, recurring deposits and basic zero-balance accounts designed to meet different banking needs.
Is Union Bank of India safe for deposits?
Yes. Deposits held in Union Bank are regulated by the Reserve Bank of India and insured up to ₹5 lakh per depositor by the Deposit Insurance and Credit Guarantee Corporation.
Does Union Bank provide digital banking services?
Yes. Customers can use the U-Mobile app, internet banking and UPI services to transfer money, pay bills and manage accounts online.
Never miss a trading opportunity with Margin Trading Facility
Enjoy 2X leverage on over 900+ stocks
