# Union Bank RD Calculator

Monthly investment
Rate of interest (p.a)
%
Time period
Years
 Invested amount ₹ Est. returns ₹ Total value ₹
Total investment
Total interest

## Union Bank Recurring Deposit Calculator

Union Bank of India is one of the largest government-owned banks in India. It provides an array of RD schemes with attractive rates of up to 5.90%. One can check the maturity value of their UBI RD with the help of the Union Bank RD Calculator online. The RD calculator computes the maturity value quickly; all you have to do is provide all the values correctly such as monthly investment amount, tenure, and the interest rate.

Recurring deposits are very easy to open and one doesn’t need a hefty amount to book an RD with Union Bank of India. The minimum amount needed to open an RD account with UBI starts from as low as Rs. 100.

Read more about Union Bank of India Recurring Deposit Rates Benefits and Tax Implication

## How is Interest Rate calculated on Union Bank of India Recurring Deposit?

Interest on a recurring deposit account with Union Bank is compounded every quarter. This implies that the deposit holders will earn interest every 3rd month from the time of deposit and 4 times in a year.

Individuals holding an RD account can use the RD calculator of Union Bank to determine their returns. The formula for compound interest used by this calculator is mentioned below –

M=R[(1+i) (n-1)]/1-(1+i)(-1/3))

Here,

• M denotes the maturity amount.
• n denotes the number of quarters within the deposit period.
• R denotes the amount deposited in the RD.
• i denotes the rate of interest divided by 400 (because of 4 quarters).

Suppose Laxman wants to deposit Rs.4500 in the month of January for a two years tenure at 7% rate of interest, then by using compound interest formula provided above, we get:

M= 4500[(1+7/400)(8-1)]/1-(1+7/400)(-1/3)

M= Rs. 116,189

With Union Bank recurring deposit calculators having your back, you no longer have to go through intricate calculations.

## Factors Affecting RD Earnings

While deciding the rate of interest for the depositor, certain factors are considered. Some of them are

Tenure of the deposit: One of the main factors that affect the RD interest rates is the deposit tenure or maturity period. Longer periods offer higher rates and vice versa. From the table listed above, the rate for depositing for 1 year 1 day to 443 days is 5.75% while that of 555 days is 5.90%.

Depositor’s age

The second most important factor that impacts the rates of interest is the depositor’s age. Senior citizens are provided with 0.5% additional interest over general citizen rates

Inflation

Inflation affects the net return on investment from a recurring deposit. For instance, if the RD interest rate per annum is 8% and the inflation is 6% then the effective interest you have earned on your deposits is just 2%.

Repo rate

With the cut in repo rate, banks tend to reduce their fixed deposit rates which means that the new deposits you make earn a lower rate and it means lower returns. However, the deposits booked at a higher rate continue to give the higher return till the time of maturity.

Reverse repo rate

The reverse repo rate is one of the instruments of the monetary policies of the Reserve Bank of India (RBI). The RBI borrows money from the commercial banks (like IOB) and pays them interest as per the reverse repo rate. If this rate is high, banks will earn more interest on the deposits and, in turn, increase the rate of interest on their term deposits (like recurring deposits).

## Benefits of Using Union Bank of India RD Calculator

• Simple to use and provides accurate results instantly
• Generates accurate results without any miscalculations
• It can be used multiple times, by adjusting the variables to determine the maturity value of the deposit.

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