Union Bank of India's 444-Day Callable FD for October 2026: Interest, Cover and Tax Basics

Union Bank of India has a 444-day callable fixed deposit (FD) in the news for October 2026. This is according to reporting by TaxCorp AI. The story also covers the interest, deposit insurance and tax rules around it.

Here's what it means for you. A callable FD can be closed early under set terms. Your money is insured up to ₹5 lakh per bank, and the interest you earn is taxable.

Key takeaways

• A callable FD can end before maturity, so read the call terms first.
• DICGC insures up to ₹5 lakh per depositor per bank, principal and interest together.
• FD interest is added to your income and taxed at your slab rate.
• Banks may cut TDS (tax deducted at source) once yearly interest crosses a set limit.
• Compare the rate with other tenures on our interest rates page before you book.

How a 444-day callable FD works

A regular FD locks your money for a fixed time. A callable FD adds an early-exit option. Under its terms, the deposit can be closed before the 444 days are over.

The reporting we have doesn't spell out the exact rate, minimum amount or call terms. Check those with the bank before you book. Odd tenures like 444 days are usually special-rate offers. They often run for a limited window.

Bank FD interest is usually compounded every quarter. That means you earn a little interest on your past interest.

What it means for your money

Here's a simple example. The 7% rate below is made up to teach the maths. It isn't the bank's rate.

Say you put ₹1,00,000 in an FD at 7% a year for 444 days. Simple interest comes to about ₹8,515. Quarterly compounding adds a little more on top.

Now think about the call feature. If the deposit is recalled early, you get your money back sooner. Then you must find a new home for it, maybe at a lower rate. That's called reinvestment risk, and it's the main cost of a callable FD.

DICGC cover: how much is safe

DICGC is the body that insures bank deposits in India. It covers up to ₹5 lakh per depositor, per bank. Principal and interest count together.

All your deposits in the same bank add up. That includes savings, current and FD accounts held in the same name.

Your total in one bank (principal + interest)	Covered by DICGC	Not covered
₹2,00,000	₹2,00,000	₹0
₹5,00,000	₹5,00,000	₹0
₹7,00,000	₹5,00,000	₹2,00,000
₹10,00,000	₹5,00,000	₹5,00,000

Tax rules for FD interest

FD interest is part of your income. It's taxed at your slab rate. Many savers owe tax every year, even on an FD that pays only at maturity.

Banks also deduct TDS. Under current rules, that's 10% once yearly interest at one bank passes ₹50,000. For senior citizens, the limit is ₹1,00,000. Limits can change, so check the latest figure.

If your total income is below the taxable limit, you can submit Form 15G. Senior citizens use Form 15H. This stops the bank from cutting TDS.

Who should look at this FD

This kind of deposit suits a few kinds of savers.

• People who want a fixed return and can handle an early recall.
• Retirees who need steady income and are fine with clear call terms.
• Savers who already hold less than ₹5 lakh in this bank.

If you already hold more than ₹5 lakh there, think about splitting money across banks.

What to do before you book

A few quick checks can save you trouble later.

1. Ask who can call the deposit, and when, in writing.
2. Compare the rate with 1-year and 2-year FDs.
3. Add up all your deposits in this bank.
4. Estimate the tax on your interest.
5. Keep your emergency money in an easy-access account.

For more savings and borrowing news, visit our news hub.

Frequently asked questions

What is a callable FD?

It's an FD that can be closed before its full term under set conditions. Check the terms to see who holds the call right.

Is my 444-day FD fully insured?

DICGC covers up to ₹5 lakh per depositor per bank. That includes both your principal and the interest earned.

Will TDS be cut on my FD interest?

Only if your interest at one bank crosses the yearly limit. You may submit Form 15G or 15H if you qualify.