In this article

**What is a Union Bank Fixed Deposit?**

Union Bank of India is one of the largest public sector banks in India. It offers a plethora of financial services to its customers, among which, its fixed deposit scheme is one of the most notable ones. Fixed deposits allow investors to evade market fluctuations and earn substantial returns on their deposited amount.

Now, regardless of how small or significant the sum one invests, a Union Bank FD calculator is a handy tool that every depositor must use.

Union Bank FD calculators are specialized online tools that help determine returns from fixed deposit investments. To start calculations, an individual needs to enter the investment amount, FD term, and interest rates. Further, one also needs to choose the frequency of interest payout and know their interest amount instantaneously.

**Understanding Interest Rates for Union Bank FDs**

To simplify the term options available, one should take a look at the tabular representation below –

Maturity term |
Rates for non-senior citizen |
Rates for senior citizen |

7 days – 14 days | 3.00% | 3.50% |

15 days – 30 days | 3.00% | 3.50% |

31 days – 45 days | 3.00% | 3.50% |

46 days – 90 days | 3.75% | 4.25% |

91 days – 120 days | 4.25% | 4.75% |

121 days – 180 days | 4.30% | 4.80% |

181 days – 364 days | 4.50% | 5.00% |

1 year | 5.25% | 5.75% |

1 year 1 day – 2 years | 5.30% | 5.80% |

2 years 1 day – 3 years | 5.50% | 6.00% |

3 years 1 day – 5 years | 5.55% | 6.05% |

5 years 1 day – 10 years | 5.60% | 6.10% |

Thus, it is evident that calculating without using the Union Bank of India FD calculator can be quite tricky.

**Union Bank FD Calculator Formula**

As stated previously, fixed deposit calculators rely on certain pieces of information to assess returns for an investor. This tool uses the following formula –

**A = P(1+r/n)^n x t**

Where,

- ‘A’ refers to the sum at maturity
- ‘P’ signifies the sum invested
- ‘r’ is the rate of interest divided by 100
- ‘n’ is the frequency of interest calculation
- ‘t’ is the term for an investment

**Union Bank FD Calculation example**

To simplify matters, let’s illustrate FD calculation with an example –

Sheetal is a 26-year-old woman, looking to invest in Union Bank FDs. The investment sum is Rs.2 lakh. She picks the deposit’s maturity term to be 5 years. Thus, by consulting the table above, she can determine her interest eligibility to be 5.8%. Lastly, she chooses the interest to be compounded yearly.

Hence, here –

P = Rs.2,00,000

r = 5.8/100 = 0.058

n = 1

t = 5

Therefore, A = 2,00,000 (1+0.058/1)^1 x 5

After solving this tricky equation, A is found to be Rs.2,65,129.67. To determine the actual interest earned on Sheetal’s investment, she needs to subtract P (Rs.2 lakh) from this ‘A’ amount. That is,

I = A-P

Thus, the total interest earned = Rs. (265129.67-200000.00) = Rs.65,129.67

Utilizing a Union Bank fixed deposit calculator is a much faster process to reach this outcome. Otherwise, investors need to follow a drawn-out process to calculate the maturity and interest amount on their fixed deposits.

**How do Various Factors Influence FD Earnings?**

The investment quantum, term, interest rates, and frequency of interest calculation all play a vital role in determining FD profitability. Investors who already have an ROI in mind can adjust these parameters to reach their desired outcome. A Union Bank FD rates calculator functionality is extremely useful in this regard –

**Sum invested –**The invested sum is the deciding factor when it comes to interest earned on an FD. Those who can spare significant sums also end up earning more, and vice versa. During calculation, if the return on investment fails to satisfy the financial goals of an investor, he can adjust the principal sum freely to reach the desired outcome.

**Investment terms –**Using a Union Bank FD calculator 2020 reveals that investing for longer tenure tends to be more profitable. If possible, one should always pick a significant term to maximize gains. Nevertheless, shorter terms can be perfect to meet immediate financial liabilities.

**Interest payout frequency –**Often, investors cannot park considerable sums or opt for longer terms. In such cases, they can increase the frequency for compounding interest to earn a slightly higher ROI.

Therefore, as one can see, a Union Bank FD rates calculator performs several functions apart from calculating the maturity amount. Smart investors can ascertain their returns using this tool, allowing them to plan their future finances better.

**Benefits of Union Bank FD Calculator**

A depositor can look forward to several benefits from using the Union Bank of India FD calculator.

Given that operations in the banking sector have largely been digitized, such calculators have become indispensable financial tools. Such a tool can be extremely useful for the following reasons –

- The calculator offers a simple and quick process to determine an investor’s ROI. While a manual calculation is possible, doing so is time-consuming.

- Results from these calculators are always accurate. Manual calculations, on the other hand, can lead to mistakes that may prove costly for an investor in the future.

- Union Bank fixed deposit calculator can help an individual understand how each factor (principal, term, etc.) plays a crucial role in determining returns.

- Lastly, taxpayers can understand profitability precisely, after considering TDS on returns.

**Union Bank Fixed Deposit Calculators – FAQs**

**Can I use an FD calculator multiple times?**

Yes. Fixed deposit calculators are available for use as many times as you wish, without any restrictions.

**Is there any charge for premature withdrawal from my FD?**

Yes, banks tend to charge a nominal fee if you decide to withdraw the deposit prematurely. This charge can range between 0.5% and 1%.

**Can my FD help me avail of a loan?**

With a loan against fixed deposit facilities, you can avail of a secured credit from the bank where your FD is present.

**What is the extra benefit for a senior citizen FD investor?**

Senior citizen FD investors can take advantage of higher rates of interest on their deposits than non-senior citizen investors.