UCO Bank FD Interest Rates: Returns, Tax Impact, And Better Options
UCO Bank is a government owned public sector bank established in 1943 and headquartered in Kolkata. Formerly known as United Commercial Bank, it operates under the leadership of MD & CEO Ashwani Kumar and has a strong presence across retail and rural banking in India.
As a PSU Bank, UCO's security is backed by the government's strength, and this is why individuals can safely invest their money through its fixed deposits. However, smart investors must consider tax implications and other investment options as well before moving ahead.
PSU Bank fixed deposits offer safe investment opportunities with reliable returns. People searching for safe, low-risk investments may choose UCO Bank fixed deposit interest rates due to their continued growth potential even when other investments are losing value.
Investors' money is locked for specific terms and earns fixed interest throughout that term. For the maximum returns, investors can compare different fixed deposits in India among different PSU Banks for the best possible rates.
To determine how much they will earn on UCO Bank's Fixed Deposits, it is important to get a complete understanding of the same and also cross-check with the fixed deposit calculator.
Also Read: TD Interest Rates 2026
UCO Bank FD Interest Rates By Tenure
When it comes to UCO Bank FD rates, they vary by the time it has been locked in, from short to long terms. Shorter periods will serve quick requirements, and longer ones can assist you with compounding.
| Tenure | General Rate (% p.a.) | Senior Citizen Rate (% p.a.) |
| 7-14 days | 2.90 | 3.15 |
| 15-29 days | 2.90 | 3.15 |
| 30-45 days | 3.00 | 3.25 |
| 46-90 days | 3.50 | 3.75 |
| 91-180 days | 4.25-4.75 | 4.50-5.00 |
| 181-332 days | 5.00 | 5.25 |
| 333 days | 6.30 | 6.55 |
| 1 year | 6.10-6.25 | 6.35-6.50 |
| 444 days (special) | 6.45 | 6.95 |
| 1-2 years | 6.10-6.20 | 6.60-6.70 |
| 2-5 years | 6.00-6.15 | 6.50-6.65 |
| Above 5 years | 6.00 | 6.50 |
Note: UCO Bank FD rates today can differ, please check the official site for exact updates.
Types Of Fixed Deposits Available At UCO Bank
1. UCO 444 Fixed Deposit Scheme
This is a special fixed deposit that runs for exactly 444 days and is one of UCO Bank’s flagship short-term investment options. For residents, the interest rate typically sits around 6.45% p.a., with senior citizens earning a higher rate (about 6.95% p.a.) on the same tenure. It’s designed for investors who want slightly higher returns than standard short-term FDs without locking in funds for many years.
2. UCO 333 Fixed Deposit Scheme
Another special tenure FD, the 333-day scheme pays competitive interest, often around 6.30% p.a. for general customers and about 6.55% p.a. for senior citizens. This makes it a solid choice for people looking to balance return and liquidity over the medium term.
3. UCO Green Deposits
Green Deposits are fixed deposits where the bank uses your funds to support environmentally sustainable projects like renewable energy or green infrastructure. The interest rates are typically a bit above regular FDs (for example, card rate + 0.20% on some tenures), and senior citizens may earn a further boost. This option lets you earn FD returns while backing green initiatives.
4. Kuber Yojana
Kuber Yojana is a standard term deposit scheme with flexible tenures (from a few months up to several years) and a relatively low minimum investment. Interest is compounded quarterly. It’s suited to investors who want to build savings with reinvested interest over the long term, though exact rates depend on the tenure chosen.
5. UCO Monthly Income Scheme
As the name suggests, this deposit pays you monthly interest instead of at maturity. It typically has a five-year tenure and a higher minimum investment requirement (e.g., INR 50,000). This structure works well for people who want a predictable monthly cash flow rather than a lump sum at the end. Premature withdrawals are allowed but usually come with a penalty.
6. UCO Tax Saver Deposit Scheme – 2006
This scheme locks your money in for five years and qualifies for a tax deduction under Section 80C of the Income-tax Act. Interest is taxable and no premature withdrawals are allowed, so it’s best if your goal is disciplined long-term saving with the added tax benefit.
7. Flexible Fixed Deposit Scheme
A flexible FD links your savings account with automatic conversion of surplus funds into FDs, helping you earn higher interest while keeping liquidity. You can make partial withdrawals without breaking the entire deposit — helpful if you need cash without losing interest on your full balance.
8. Motor Accident Claim Term Deposit Account
This is a court-directed term deposit for parking funds received as motor accident compensation. Its structure and withdrawal rules are governed by the court order to protect long-term financial security for the claimant or their family.
9. Premature Closure of Term Deposits – Penalty Charges
If you withdraw a fixed deposit before maturity, UCO Bank typically reduces the interest rate to the rate applicable for the actual period and may charge a penalty on the interest. The exact penalty varies by product and tenure, and certain schemes (like tax saver FDs) generally don’t allow early closure.
Senior Citizen FD Benefits
UCO Bank senior citizens benefit from an added 0.5% on their deposits. So if you are a senior citizen and invest for one year or longer, you will receive an additional 0.50% above and beyond the standard return rate of interest on your deposit.
If you invest for less than one year, you will receive an additional 0.25%. This additional interest amount helps to provide senior citizens with the comfort and safety net of financial support during their retirement years, especially during times of rising costs.
Not only this, but nominations and loans of up to 90% of the principal value of the senior citizen fixed deposits provide them with added flexibility and convenience during their retirement years.
The senior citizen fixed deposits are tax-saving fixed deposit accounts. They can be held for a minimum five-year period and qualify for tax deductions under section 80C of the Income Tax Act.
Comparing UCO Bank FDs With Other Options
UCO Bank FD interest rates hold steady but face strong rivals. FD returns comparison reveals small finance banks leading with best FD rates India offers today.
1. UCO Bank: Steady And Reliable Choice
UCO Bank holders enjoy rates that remain relatively constant. These rates stay competitive within peer groups for various tenures.
2. Other Banks: Competitive Landscape
PSU peers like Bank of India match closely with offers from 6 to 6.75% on similar tenures. Private players such as IndusInd Bank push higher, reaching up to 7% on select periods. These options appeal to those seeking slight edges in yields.
3. Small Finance Banks: Higher Yields with Nuance
Small finance banks like Suryoday offer the best FD rates India provides. They offer elevated interest to attract savers. Yet this comes with slightly higher risk compared to UCO Bank's solid backing.
4. Fixed Income Opportunities
UCO Bank remains a safe and secure investment option for those who want to maximise their potential earnings. Other fixed income investment alternatives include post office savings schemes, corporate FDs which provide both tax benefits and security. Not only this, but you can also consider debt mutual funds, which provide liquidity and varying returns. Both of which can serve different purposes for depositors who are investing in a bank FD.
| Option | Top Rate (% p.a.) | Safety Level | Liquidity |
| UCO Bank FD | 6.45 (444 days) | High (DICGC Insured) | Medium |
| Suryoday SFB | 8.00 (5 years) | High (DICGC Insured) | Medium |
| Post Office FD | ~7.0 | High | Low |
| Debt Funds | 6-8 variable | Medium | High |
| Corporate FD (via Grip) | 8-10% | Medium to High (Issuer dependent) | Medium-high |
Beyond Traditional Bank FDs
Corporate bonds provide higher yields than other investments and the same level of safety. Companies like Grip Invest allow investors to receive interest monthly without needing to visit their bank every day.
Currently, Grip is offering AAA-rated corporate bonds that outperform the UCO Bank fixed deposit (FD) rate. Bonds offered by the Reserve Bank of India offer similar flexibility, while also providing investors with Government-to-Government security.
Tax Impact on Returns
There are several other factors that determine how much tax an investor will pay on their income.
All interest received by an investor is taxed in accordance with their tax bracket, after deducting the first Rs. 40,000 of interest earned (Rs 50,000 for senior citizens).
If an investor earns over Rs. 40,000 during the course of a financial year (TDS), 10% will be withheld via TDS.
Hypothetical Example
Ramesh, 45 years old, invested 5 lakh rupees in a 444-day FD with UCO Bank for a 6.45% interest rate, which will return nearly 5.53 lakh rupees upon maturity.
He will receive approximately 28,000 rupees before taxes and after deducting 20% tax, netting 22,400 rupee gain.
Ramesh's cousin (senior citizen) invested 5 lakh rupees in the same FD with a higher interest rate of 6.95% and received 2,500 rupee more than Ramesh.
She chose to receive her interest payment through a monthly installment payment plan to pay bills. If she switched to an 8% Grip bond, she would earn 40,000 rupee in interest for a better return after taxes.
This example demonstrates how to compare different options for FD returns.
Special Schemes And Tips
The UCO Green FD supports investments in eco-friendly projects while offering interest rates that are higher than those of standard fixed deposits. Investors can opt to receive interest payouts through a monthly income scheme. Opening an FD is quick and convenient via online banking.
While premature withdrawals attract a penalty of 1–2%, choosing the auto-renewal option can help ensure continuity and ease. Customers can also monitor and manage their FD seamlessly through the UCO Bank mobile app.
FAQs On UCO Bank FD Rates 2026
1. What is the current UCO Bank fixed deposit rate?
The highest FD interest rate offered by UCO Bank is 6.45% for general customers and 6.95% for senior citizens, for a period of 444 days. Check the UCO bank website for current rates.
2. Does UCO Bank have any special FD programs?
Yes, UCO Bank offers its customers four different FD programs: UCO 444, Green FD, Tax Saver, and Monthly Income, along with some unique benefits.
3. How safe are UCO Bank fixed deposits?
UCO Bank fixed deposits are considered very safe due to deposit insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC) for the first 5 lakh rupees deposited by each depositor.
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