Union Bank FD Calculator
Introduction
Fixed deposits or FDs are a popular investment option offered by banks. They provide guaranteed returns over a predetermined time period. The interest rates on FDs are usually higher than savings accounts. Many banks also allow you to calculate estimated returns on your investment using FD calculators on their websites.
Union Bank of India offers attractive interest rates on fixed deposits for various tenures. The rates are very competitive when compared to other banks. Union Bank also has an easy to use FD calculator available on our website which helps you estimate the maturity amount for your deposit even before investing.
In this post, we will look at how to use the Union Bank FD calculator to determine returns and why it makes for an excellent planning tool.
What is a Fixed Deposit?
A fixed deposit (FD) is a financial instrument provided by banks which provides guaranteed returns over a specified period of time. It is a secure investment option as it cannot be withdrawn before maturity. The key features of FDs include:
- Investment Amount – This refers to the principal amount you invest towards the FD. Most banks have a minimum amount criterion.
- Tenure – This is the lock-in period which can range from 7 days to 10 years. The longer the duration, higher the interest rate.
- Interest Rate – FD interest rates are higher than savings accounts. Rates are fixed when you create the FD.
- Yearly/Monthly/Daily Interest – While the principal matures at the end, you can opt to get periodic interest payouts.
So in a nutshell, FDs allow you to deposit a fixed sum for a predetermined tenure to earn guaranteed returns at fixed interest rates.
Benefits of Opening an FD
Here are some major benefits of investing in a fixed deposit:
Safe Investment
FDs are one of the safest investment options as they are covered under the deposit insurance scheme up to Rs 5 lakhs. They provide fixed guaranteed returns.
Fixed Returns
The interest rate is locked in when you invest and remains the same throughout the tenure, giving you fixed returns.
Flexible Tenures
You can invest for short tenures like a few months to long term of 10 years based on your need for funds.
Tax Benefits
The interest earned can get tax exemptions under Section 80C, making them more lucrative.
Loan Against FD
Banks allow easy loans against FDs up to certain limits at competitive interest rates.
Periodic Payouts
While the principal matures at the end of the term, you have the provision to get regular interest payouts.
Given these benefits, FDs are a preferred investment choice for many customers.
Key Things to Check Before Opening an FD
While fixed deposits come with attractive benefits, you need to assess a few things before investing:
Interest Rates
Compare the FD rates across banks and go with the one providing the highest returns. Choose longer durations for better rates.
Minimum Deposit Amount
Make sure you have sufficient funds as per the minimum requirement by the bank. This can range from ₹1000 to ₹10,000.
Lock-in and Withdrawal
Check the premature closure policy. Many banks don’t allow withdrawal before minimum 6 months without penalty.
Interest Payout Flexibility
See if you can get monthly, quarterly or annual payouts. Having flexibility in getting regular interest helps plan cash flows better.
Online Investment Facility
Many banks allow creating and managing FDs seamlessly through netbanking or mobile apps. Choose ones with easy online access.
Assessing these parameters will help pick the right FD option that meets your investment needs and goals.
Overview of Union Bank FD Calculator
Union Bank offers a very useful FD calculator on their website that allows customers to estimate the maturity amount even before investing.
Key Highlights
- Easy to use calculator requiring basic inputs
- Computes estimated maturity value for different tenures
- Adjust interest payout frequency as per need
- Detailed output with all parameters covered
This calculator comes in very handy for Union Bank customers looking to open fixed deposits. It gives them a snapshot of the interest earnings and helps them pick suitable tenures and interest payouts even before creating an FD.
Having looked at its key features, let us now see how to actually use this FD calculator.
Using the FD Calculator
The Union Bank FD calculator is very easy to use. Here are the steps to use it:
- Enter Principle – Specify the deposit amount you wish to invest.
- Select Tenure – Choose the duration from the options – 7 days to 10 years.
- Choose Payout Frequency – Pick if you want Yearly or Monthly payouts.
- Compute Returns – Click on the “Calculate” button.
- See Results – The maturity amount, interest earnings etc. will be displayed.
You can tweak the inputs and re-calculate to assess different scenarios and pick the ideal FD investment options that match your goals.
Benefits of Using the Calculator
The Union Bank FD calculator comes with the following useful benefits:
Estimates Returns
It provides an approximate estimate of the interest you can earn and the maturity amount across different investment amounts and tenures.
Saves Time
The tool computes the earnings, saving you manual work of interest calculations. Gets quick results!
User Friendly
Very simple and intuitive interface making it easy for anyone to use without prior financial knowledge.
Free to Use
It is available for free on Union Bank’s website for any visitor. Saves costs.
Informed Decision Making
Use the projections to take an informed investment decision as per your goals.
Using this calculator takes the guesswork out of determining the ideal FD amount and tenure for your needs.
Conclusion
Union Bank’s FD calculator available on our website is an excellent tool for customers to plan their fixed deposit investments. It provides a quick and easy way to estimate the interest earnings and maturity amount for different investment scenarios.
The calculator has an intuitive interface allowing you to adjust parameters like deposit amount, tenure, payout frequency.
So before investing, I recommend using this free FD calculator to assess different options and pick the ideal fixed deposit that aligns with your financial goals. It is fast, easy to use and provides detailed projections – making informed decisions quicker.
Check out FD Calculators page today to use this calculator. Happy investing!
