UCO Bank 444-Day FD: Is Your Rate 6.45%?
UCO Bank offers a special 444-day fixed deposit at 6.45% per year for regular customers, with senior citizens getting extra. But tax, premature exit penalties, and the ₹5 lakh insurance cap can quietly reduce your real gain.
At 6.45%, a ₹5 lakh FD earns ~₹2,700 more than a standard savings account over 444 days — that's 450 cups of chai.
UCO Bank's special FD tenor beats most regular 1-year deposits right now
Key Takeaways
Compare UCO Bank's 444-day rate against the nearest standard tenors (1 year and 18 months) at your current bank — the special bucket sometimes offers 15–25 bps extra for no extra risk.
Calculate your post-tax yield before booking: if you are in the 30% tax slab, divide the headline rate by 1.3 to find your real return, and check whether a tax-free bond or PPF suits you better.
If your total FD balance at UCO Bank (including this new deposit) will cross ₹4.5 lakh, consider splitting the investment between two family members so the ₹5 lakh DICGC cap protects the full amount.
UCO Bank offers a special 444-day fixed deposit at 6.45% per year for regular customers, with senior citizens getting extra. But tax, premature exit penalties, and the ₹5 lakh insurance cap can quietly reduce your real gain.
Here's what happened: UCO Bank has introduced a 444-day domestic term deposit at 6.45% per annum for general customers, with an enhanced rate for senior citizens.. Interest earned on this FD is taxable under 'Income from Other Sources'; TDS is deducted if annual interest across all UCO Bank FDs exceeds ₹40,000 (₹50,000 for seniors).. DICGC deposit insurance covers a maximum of ₹5 lakh per depositor per bank, including both principal and accrued interest combined..
What you should do: Compare UCO Bank's 444-day rate against the nearest standard tenors (1 year and 18 months) at your current bank — the special bucket sometimes offers 15–25 bps extra for no extra risk.. Calculate your post-tax yield before booking: if you are in the 30% tax slab, divide the headline rate by 1.3 to find your real return, and check whether a tax-free bond or PPF suits you better.. If your total FD balance at UCO Bank (including this new deposit) will cross ₹4.5 lakh, consider splitting the investment between two family members so the ₹5 lakh DICGC cap protects the full amount..
Submit Form 15G (or 15H for seniors) at the start of the financial year if your total income is below the taxable threshold — this stops UCO Bank from deducting TDS and avoids a refund wait at ITR time.
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- [1]“Finance | UCO Bank 444 Day Domestic Term Deposit Rates Tax and Deposit Insurance” taxguruin · 21 Oct 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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