UCO Bank 444 Day Domestic Term Deposit Rates Tax and Deposit Insurance

Summary: UCO Bank’s official domestic term-deposit rate table for deposits below Rs 3 crore, revised with effect from 21 May 2026 and checked on 20 October 2026, lists 6.45% per annum for the 444-day tenor and an annualised-yield figure of 6.83%. The rate page separately identifies additional-interest categories, so a resident senior citizen who satisfies the bank’s conditions should obtain the exact applicable rate on the deposit advice rather than relying on arithmetic alone. This article distinguishes the currently listed 444-day tenor from an older promotional UCO 444 page whose displayed validity ended on 30 June 2026, and explains payout, premature closure, TDS, income inclusion and DICGC aggregation without recommending the deposit.

What UCO Bank currently lists for the 444 day tenor

UCO Bank’s official interest-rate page contains a table for domestic term deposits below Rs 3 crore, including NRO deposits, revised with effect from 21 May 2026. In that table, the 444-day tenor carries a nominal rate of 6.45% per annum and an annualised-yield figure of 6.83%. The adjacent ranges are separately priced, which means a deposit for 443 days or 445 days should not be assumed to earn the 444-day rate. The rate applicable on the booking date and recorded by the bank in the deposit advice or receipt is the contractual reference.

The bank also hosts a product page branded UCO 444 that displays a validity date of 30 June 2026. That expired promotional page should not be used to claim that a special scheme remains open in October 2026. The current rate table nevertheless continues to list a 444-day domestic term-deposit tenor. This article therefore covers an ordinary UCO Bank domestic term deposit booked specifically for 444 days under the live rate schedule, not an extension of the expired promotional product and not an NRE, FCNR, tax-saver, recurring, non-callable bulk or senior-citizen-only scheme.

Senior citizen pricing must be confirmed from the booking advice

UCO Bank’s rate page separately publishes additional-interest treatment for senior citizens, staff and ex-staff. A standard resident senior-citizen addition of 0.50 percentage point above the public rate would arithmetically take the 444-day nominal rate from 6.45% to 6.95% per annum. That arithmetic is not a substitute for eligibility. The bank must confirm the customer’s residential status, age, deposit amount, account constitution, first-holder rule where relevant, booking channel and whether the particular premium may be combined with any staff or ex-staff benefit.

A joint account containing a senior citizen does not automatically prove that the senior rate applies, and an NRO deposit should not be treated as a resident senior deposit merely because NRO deposits appear in the same base-rate table. The final deposit receipt should state the contracted rate, booking date, principal, tenor, maturity date and maturity or payout instructions. Any mismatch between the displayed quote and the receipt should be resolved before funds remain locked for the full 444 days.

The 6.83 percent figure is a yield indicator not a second interest rate

The official table places 6.45% beside an annualised-yield figure of 6.83% for 444 days. The first figure is the nominal annual rate used under the bank’s interest-calculation method. The yield figure reflects compounding over the relevant tenor and should not be read as a separate selectable rate. A cumulative deposit, a monthly-interest option and a quarterly-interest option can produce different cash-flow timing even when they begin from the same nominal rate. Monthly payouts may involve discounting, while cumulative interest remains invested according to the bank’s method.

The customer should rely on the maturity value printed in the deposit advice or generated by the bank’s official system. Multiplying principal by 6.45% and then by 444/365 produces only a simple-interest estimate; it can differ from the contractual result because of quarterly compounding, broken-period calculation, day-count convention, rounding, payout choice, TDS timing and any premature closure. The 6.83% column also should not be multiplied by principal as though it were the interest payable for 444 days.

Callability and premature closure need the deposit specific rule

The RBI’s Master Direction on Interest Rate on Deposits, 2025 provides the regulatory framework within which banks formulate deposit rates and premature-withdrawal policies. It requires banks to disclose the applicable penalty and recognises that interest on premature withdrawal is determined under the bank’s policy rather than automatically at the original contracted rate. UCO Bank’s customer charter states that premature withdrawal is allowed unless a deposit is specified otherwise. That qualification matters because non-callable and special deposits can restrict closure.

For the ordinary 444-day domestic term deposit covered here, the customer should obtain the callable or non-callable status and the current premature-closure formula in writing at booking. If closed early, the bank may apply the rate that was available on the original booking date for the actual completed period, reduce it by the disclosed penalty, or apply another permitted policy. The 444-day contracted rate should not be assumed to survive early closure. No interest may be payable if the deposit is withdrawn before the bank’s minimum interest-bearing period. A loan or overdraft against the deposit is a separate credit facility with interest, margin and lien terms; it is not automatically cheaper than closure.

Income tax treatment for Tax Year 2026 27

Interest on an ordinary bank term deposit is taxable income. For a depositor whose accounting facts place it under income from other sources, the gross interest must be reported under that head; business entities may have a different character where the deposit is demonstrably connected with business. The absence of tax deduction at source does not make the interest exempt, and TDS is only a credit against the final tax liability. A 444-day deposit is not a five-year tax-saver deposit and does not become eligible for a principal deduction merely because it is called a fixed deposit.

Tax Year 2026-27 is governed by the Income-tax Act, 2025 and the Income-tax Rules, 2026. Depositors should therefore not mechanically copy section numbers, threshold statements or declaration forms from an article dealing with FY 2025-26 under the Income-tax Act, 1961. The bank applies the current TDS provision to interest credited or paid, subject to the payee category, aggregate threshold, PAN status, rate, declarations and any lower-deduction certificate. The Income Tax portal identifies Form 121 under the 2026 Rules as the declaration route for eligible taxpayers seeking non-deduction on specified receipts where the statutory conditions, including nil estimated tax liability, are satisfied.

The depositor should reconcile the bank’s annual interest certificate, Form 16A where issued, AIS and the tax return. Cumulative deposits can create annual tax reporting even though cash is received only at maturity, depending on credit and accrual. If total estimated tax after TDS remains payable, advance-tax obligations may arise. Resident senior citizens and other taxpayers should separately test any deduction permitted by the current Act and their chosen tax regime; a deduction, when available, is not the same as exemption of the bank interest.

DICGC cover aggregates UCO Bank deposits in the same capacity

DICGC insures eligible deposits with an insured bank up to Rs 5 lakh per depositor in the same right and same capacity, including principal and interest. The ceiling is not Rs 5 lakh for each UCO Bank branch, each fixed-deposit receipt or each account. Savings, current, recurring and fixed-deposit balances across branches are aggregated where they are held in the same right and capacity. If principal itself is Rs 5 lakh, accrued interest does not sit above the ceiling merely because it is interest.

Accounts held in genuinely different capacities or rights can be treated separately under DICGC rules, while joint accounts with the same names in the same order are aggregated together. Changing branches does not create fresh cover. Depositors should use the DICGC illustrations and legal account constitution rather than splitting receipts mechanically. Deposit insurance protects within the statutory scheme if an insured-bank failure or covered restriction triggers payment; it is not a promise of immediate liquidity, protection against early-withdrawal loss, compensation for a wrong rate, or a guarantee of all balances.

Document checks at booking maturity and renewal

1. At booking, capture the official rate-page date, choose exactly 444 days, confirm deposit amount category and verify the customer category used for pricing.

2. Read the receipt for nominal rate, principal, booking date, maturity date, maturity amount or payout mode, nominee, operating instruction, auto-renewal and premature-closure status.

3. During the tenor, monitor interest credits and TDS entries against the bank certificate, Form 16A where applicable, AIS and the books or personal records.

4. Before any early exit, obtain a written quote showing the actual-period rate, disclosed penalty, interest already paid, TDS adjustment and net proceeds.

5. At maturity, compare the credited amount with the contractual advice and decide afresh whether to renew; a renewal receives the rate and terms then applicable, not automatically the original 6.45% rate.

Frequently Asked Questions on the UCO Bank 444 Day Deposit

1 Is the UCO 444 promotional scheme still open

The UCO Bank promotional product page displays validity up to 30 June 2026, so it should not be described as an active special scheme in October 2026. The bank’s current rate table separately continues to list a 444-day domestic term-deposit tenor at 6.45% for the covered amount category.

2 What rate is shown for exactly 444 days

The official domestic term-deposit table for deposits below Rs 3 crore, revised from 21 May 2026, shows 6.45% per annum and a published annualised yield of 6.83% for 444 days. The receipt issued on the booking date controls the customer’s contract.

3 Does every senior citizen receive 6.95 percent

Not automatically. Adding a 0.50 percentage-point resident senior premium to 6.45% gives 6.95%, but the bank must confirm age, residence, account constitution, deposit category and any first-holder or combination conditions. The final quoted and recorded rate should be checked.

4 Will premature closure earn 6.45 percent until closure

It should not be assumed. UCO Bank’s applicable policy can substitute the rate for the actual completed period and apply a disclosed penalty. A non-callable or specially restricted deposit may not permit ordinary early closure. Obtain a net closure quote before giving instructions.

5 Is FD interest tax free if the bank does not deduct TDS

No. TDS and final tax are separate. Gross interest remains reportable under the applicable income head, and any balance tax or advance tax must be considered. For Tax Year 2026-27, apply the Income-tax Act, 2025 and Rules, 2026 rather than copying older provisions.

6 Does each UCO Bank FD receive Rs 5 lakh DICGC cover

No. DICGC aggregates eligible deposits across the same bank when held in the same right and capacity. The maximum insured amount is Rs 5 lakh for principal and interest together in that aggregation, not per receipt or branch.

Key Takeaways

• UCO Bank’s below-Rs-3-crore domestic term-deposit table lists 6.45% nominal interest and 6.83% annualised yield for exactly 444 days.
• The active 444-day rate-table entry must not be confused with the promotional UCO 444 page whose stated validity ended on 30 June 2026.
• Senior pricing, payout mode, callable status and premature-closure penalty must be confirmed on the booking advice.
• FD interest is taxable even when no TDS is deducted; Tax Year 2026-27 falls under the Income-tax Act, 2025 and Rules, 2026.
• DICGC cover is capped at Rs 5 lakh for principal and interest aggregated in the same right and capacity at UCO Bank.

Source Links

• UCO Bank – Interest Rates on Deposit Schemes: https://www.ucobank.com/interest-rates-on-deposit-schemes
• UCO Bank – Fixed Deposit product page, including the historical UCO 444 validity display: https://www.ucobank.com/fixed-deposit
• UCO Bank – Citizen Charter: https://ucobank.com/citizen-s-charter
• Reserve Bank of India – Master Direction on Interest Rate on Deposits, 2025: https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=12825
• Deposit Insurance and Credit Guarantee Corporation – Guide to Deposit Insurance: https://www.dicgc.org.in/guide-to-deposit-insurance
• Income Tax Department – Form 121 User Manual: https://www.incometax.gov.in/iec/foportal/newformpage/forms/from121-um
• Income Tax Department – Income-tax Rules, 2026: https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-03/En-Notified-IT-Rules-2026-20-03-2026.pdf

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Disclaimer: This article is an educational description of UCO Bank’s 444-day domestic rupee term-deposit tenor and related legal and tax issues, based on official UCO Bank, Reserve Bank of India, Deposit Insurance and Credit Guarantee Corporation and Income Tax Department material checked on 20 October 2026. It is not an invitation, recommendation, ranking, comparison, prediction or assurance that the deposit is suitable, available through every channel or preferable to any other product. The 6.45% nominal rate, 6.83% published annualised yield and 21 May 2026 table date relate to the specific official table and amount category described; the contracted rate, maturity value and terms are those accepted by the bank on the actual booking date and recorded in the deposit advice. Senior-citizen, staff, ex-staff, NRO, joint-holder and other eligibility conditions must be independently confirmed. The older promotional UCO 444 page displays a validity date that has passed and is not treated here as proof of current special-scheme availability. Interest computation, compounding, payout, day count, minimum deposit, maximum amount, callable status, premature-closure rights and penalty, lien, nomination, auto-renewal, TDS, Form 121 eligibility, tax regime, income classification, advance tax, DICGC aggregation and claim timing depend on current rules and individual facts. Rates, bank policies, tax law, official forms and regulatory directions can change without this article being updated. A depositor should read the live rate page, current deposit policy, receipt and disclosures, and obtain advice from the bank and an appropriately qualified tax or financial professional. TaxGuru accepts no responsibility or liability for rate changes, tax, TDS, interest shortfall, premature-withdrawal loss, liquidity delay, insurance aggregation, bank or portal error, missed declaration, penalty, financial loss or any other consequence of relying on this article without current product-specific and person-specific verification.