UCO Bank offers the UCO Sowbhagya RD Scheme with a competitive interest rate of 5.55%. Senior citizens enjoy an additional 0.50% interest boost over the standard rates. Recurring deposits (RDs) are popular due to their flexible terms and minimal initial deposit requirement. Allocating a portion of your monthly income into this savings mechanism at UCO Bank enables you to build a substantial reserve for unexpected expenses.

Eligibility Criteria for UCO Bank Recurring Deposit

Eligible entities for setting up a recurring deposit at UCO Bank include:

• Resident Indians.
• Joint account holders, allowing two or more individuals to jointly operate an account with equal rights.
• Minors above 10 years, managed by their legal guardians.
• Registered institutions and joint companies.
• In joint accounts, each holder acts as the beneficiary for the other; upon one holder's demise, the other becomes the legal nominee.

Required Documents to Open a Recurring Deposit in UCO Bank

To open a recurring deposit account, you must submit:

• An application form prescribed by the bank.
• Copies of PAN card.
• Two passport-sized photographs of the applicant.
• Valid identity proof.
• Valid address proof.

Types of UCO Bank Recurring Deposit Schemes

UCO Bank categorizes its deposit plans based on tenure:

• Short-term Deposits: Tenures ranging from 6 months to 3 years, perfect for cultivating saving habits.
• Medium-term Deposits: Extend from 3 to 7 years, offering a balance between flexibility and commitment.
• Long-term Deposits: Suitable for individuals seeking returns with regular monthly contributions, similar terms as fixed deposits.

Premature Withdrawal and Penalties on UCO Bank Recurring Deposits

For premature withdrawal, a penalty of 2% is imposed, calculated on the lesser of the interest rate on the redemption date or the rate applicable for the deposit's tenure.

Tax Implications on UCO Bank Recurring Deposits

If total interest across all UCO Bank RDs exceeds Rs. 10,000 annually, 10.3% TDS is deducted. Without PAN updates, TDS doubles to 20.6%. Include RD interest in your taxable income. Estimate your overall interest to pay advance tax on due dates: 15th Sep, 15th Dec, 15th March, and 31st March. UCO Bank issues Form 16A outlining deducted tax details.

Steps to Open a Recurring Deposit Account in UCO Bank

Opening an RD account is simple, available via online and offline modes.

• Online: Existing UCO Bank users can initiate via the net banking portal; new customers need to establish a savings account first.
• Offline: Visit the nearest branch, submit completed account forms, required documents, and complete KYC procedure; account activation notification follows verification.

Calculating Maturity Amount for UCO Bank RD

UCO Bank assists investors with maturity amount projections based on monthly investments and tenure. Use the formula: A = P*(1+R/N)^(Nt), where A is the maturity amount, P is monthly deposit, R is the interest rate, N is compounding frequency, and t is the tenure. For example, Priya's Rs. 10,000/month UCO Bank RD over 5 years at a 6.5% rate results in Rs. 7,09,902 at maturity.