Fd Interest Calculator Union Bank Of India

Fixed Deposit Formula:

\[ A = P \times (1 + R / n)^{(n \times T)} \]

Principal Amount (P):

INR

Annual Interest Rate (R):

Compounding Frequency (n):

Time Period (T):

years

Maturity Amount:

Interest Earned:

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1. What is the Union Bank of India FD Calculator?

The Union Bank of India Fixed Deposit Calculator helps investors calculate the maturity amount and interest earned on their fixed deposits. It uses the compound interest formula to provide accurate results based on principal amount, interest rate, compounding frequency, and time period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + R / n)^{(n \times T)} \]

Where:

\( A \) — Maturity Amount
\( P \) — Principal Amount (INR)
\( R \) — Annual Interest Rate (decimal)
\( n \) — Compounding Frequency per year
\( T \) — Time Period (years)

Explanation: The formula calculates how much your investment will grow based on compound interest, where interest is earned on both the principal and accumulated interest.

3. Importance of FD Calculation

Details: Accurate FD calculation helps investors plan their investments, compare returns from different tenure options, and make informed financial decisions for future goals.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as percentage, select compounding frequency, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit amount for Union Bank of India FD?
A: The minimum deposit amount varies by FD scheme, but typically starts from ₹1,000 for regular fixed deposits.

Q2: How often is interest compounded in Union Bank FDs?
A: Interest can be compounded quarterly, half-yearly, or annually depending on the FD scheme and tenure selected.

Q3: Are there tax benefits on Union Bank FDs?
A: Regular FDs don't offer tax benefits, but tax-saving FDs with 5-year lock-in period provide tax benefits under Section 80C of Income Tax Act.

Q4: What is the premature withdrawal policy?
A: Premature withdrawal is allowed but may attract penalty charges and revised interest rates as per bank's current policies.

Q5: Are senior citizens eligible for higher rates?
A: Yes, Union Bank of India offers additional interest rate (typically 0.50% higher) for senior citizens on fixed deposits.