1. What is the Union Bank FD Calculator?

The Union Bank Fixed Deposit Calculator helps you estimate the maturity amount of your fixed deposit investment using the compound interest formula. It calculates returns based on principal amount, interest rate, tenure, and compounding frequency.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Maturity amount (INR)
• \( P \) — Principal amount (INR)
• \( R \) — Annual interest rate (decimal)
• \( n \) — Compounding frequency per year
• \( T \) — Time period in years

Explanation: The formula calculates how your investment grows over time with compound interest, where interest is added to the principal at regular intervals.

3. Importance of FD Calculation

Details: Accurate FD calculation helps in financial planning, comparing investment options, and understanding how compounding can significantly increase your returns over time.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the typical compounding frequency for Union Bank FDs?
A: Union Bank typically compounds interest quarterly (n=4) for fixed deposits, but other frequencies may be available.

Q2: Are there any penalties for premature withdrawal?
A: Yes, Union Bank may charge a penalty for premature withdrawal of fixed deposits, which could affect your actual returns.

Q3: Is the interest earned on FDs taxable?
A: Yes, interest earned on fixed deposits is taxable as per your income tax slab rate.

Q4: What is the minimum investment amount for Union Bank FDs?
A: The minimum investment amount varies by FD scheme, but typically starts from ₹1,000.

Q5: Can senior citizens get higher interest rates?
A: Yes, Union Bank offers higher interest rates for senior citizens on fixed deposits.