Union Bank FD Calculator 2023
Total Investment
Rate of Interest (P.a)
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Time Period (Years)
Invested Amount
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Est. Returns
Total Value
How to Use Union Bank Fixed Deposit Calculator?
- Step 1 : Enter the principal you wish to invest in a Union Bank fixed deposit
- Step 2 : Choose the interest rate based on duration and category
- Step 3 : Enter the tenure of investment
Union Bank Interest and Maturity Amount Calculation Formula
Simple and compound interest calculations are the two methods for calculating Union Bank FD returns.
The following formula is used to calculate the maturity amount and interest using the simple interest method:
Simple Interest = (P * R * T)/100
Here, P is the principal, i.e. the total amount invested, R is the interest rate applicable to investment, and T is the time for which the amount is invested.
For instance, assume your investment amount is ₹10,000, and you have invested it at 5% per annum for 5 years.
P= ₹10,000
R= 5% per annum
T= 5 years
Simple Interest = (10,000 * 5 * 5) /100 = ₹2,500
Maturity Amount = Amount invested + Simple Interest = ₹10,000 + ₹2,500
Thus, your investment will grow to ₹12,500 upon maturity.
Alternatively, the compound method formula below is used for calculation.
A = P (1+r/n) ^ (n * t)
Here, A is the maturity amount, P is the principal invested, R is the interest rate applicable, t is the investment duration, and n is the number of times compounding is done.
Suppose the amount invested is ₹25,000 for 5 years, and the applicable interest rate is 6% per annum, compounded semi-annually.
Here,
P = Rs. 25,000
R = 6%
N = 2
T = 5 years
A = 25,000 (1+0.06/2) ^ (2*5)
Maturity Amount = ₹33,597
Interest earned = ₹33,597 – ₹25,000 = ₹8,597
Benefits of Using Union Bank Fixed Deposit Interest Calculator
Instant and reliable results
You just need to enter the investment value, applicable interest rate, and investment duration, and the Union Bank FD calculator will generate an estimate of the maturity amount and expected return instantly. The calculation is error-free and, thus, a reliable way to plan investments.
Easy comparisons for better planning
You can enter various rates and durations in the Union Bank FD calculator to compare results and know what works best for your investment goals. This can help you to plan your finances better.
Free and accessible to all
The UBI FD calculator is a free-to-use online tool requiring investors just to enter the values to generate estimated returns.
Frequently asked questions
The calculator requires only 3 inputs to calculate the resultant amount and interest earned upon maturity – investment amount, applicable interest rate, and investment duration.
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What is Union Bank Fixed Deposit Interest Rate in 2023?
Union Bank FD interest rates currently lie between 3% to 8.05% when including the senior citizen and super senior citizen schemes. Apart from the investor category, the investment duration also affects the interest rate and, thus, the maturity amount. Below are some details about the Union Bank FD interest rate:
- Interest Rate: 3% – 05% p.a.
- Tenure: 7 days- 10 years
- Minimum Deposit: ₹1,000
- Maximum Deposit: No limit
- Lock-in Period: 7 days (5 years for tax-saver deposit scheme)
Ways to Calculate Union Bank Fixed Deposit Interest and Maturity Amount
The following two methods are used for the calculation of Union Bank fixed deposit maturity amount and interest:
- Simple Interest calculation method
- Compound interest calculation method
Calculation using the simple interest method used the following formula:
Simple Interest = (P * R * T)/100
Here, P denotes the principle, R denotes the interest rate applicable, and T denotes the investment tenure.
The example below illustrates the calculation using the simple interest method.
Suppose the invested sum is ₹80,000, the interest rate is 4% per annum, and the investment tenure is 5 years.
P= ₹80,000
R= 4%
T= 5 years
Simple Interest = (80,000 * 4 * 5) /100 = ₹16,000
Total amount upon maturity = Amount invested + Simple Interest = ₹80,000 + ₹16,000 = ₹96,000
Thus, the FD will yield ₹96,000 upon maturity.
Calculation using the compound interest method uses the following formula:
A = P (1+r/n) ^ (n * t)
Here,
A is the total amount received upon maturity, P is the principal invested, R is the applicable interest rate, T is the investment tenure, and n is the number of times compounding happens.
The example below illustrates the calculation using the compound interest method:
Suppose ₹25,000 is invested for 5 years at an interest rate of 4% per annum compounded semi-annually.
P = ₹25,000
R = 4%
T = 5 years
N = 2
A = 25,000 (1+0.04/2) ^ (2*5)
Maturity Amount = ₹30,474
Interest earned = ₹30,474 – ₹25,000 = ₹5,474
How Can Union Bank FD Calculator Help You?
- Ease of access : The easy-to-use interface allows investors to calculate returns on their term deposit investment by just entering principal, investment duration, and applicable interest.
- Quick and accurate return calculation : Using the fixed deposit interest calculator in Union Bank of India, you can obtain error-free and quick return estimates.
- Easy investment planning : The Union Bank FD calculator allows you to input varying combinations of investment duration, principal, and rate of interest to know what works best to achieve your financial objectives.
Factors that Can Affect Union Bank Fixed Deposit Maturity Amount Calculation
- Rate of interest applicable to the investment : The scheme and investment duration affect the interest rate applicable to the Union Bank FD investment. Senior and super senior citizens enjoy preferential interest rates (0.5% and 0.75%, respectively) compared to others.
- Investment duration : The tenure of investment affects the interest rate and, hence, the maturity amount.
- Principal Amount: The maturity amount will be higher if the amount invested is high and vice-versa. You must plan your investment based on your goal.