Union FD Calculator
The Union Fixed Deposit (FD) calculator is a free online tool that can help you figure out the amount that your investment will grow to at the end of the FD tenure. You can use the FD calculator to plan your FD investments easily.
A fixed deposit account is a type of savings account offered by banks and financial institutions. In this savings instrument, you can deposit a certain amount for a predetermined period at a fixed interest rate. The funds are locked in for the term, which can range from one week to several years.
Fixed deposits are generally of two types: cumulative and non-cumulative. In a non-cumulative FD, the interest amount is paid on a monthly, quarterly, half-yearly, or yearly basis. In a cumulative FD, the interest is accumulated through the entire FD tenure and paid on maturity.
How Does The Union Fixed Deposit Calculator Work?
The calculator uses the below formula to calculate the maturity for simple interest (non-cumulative) FDs.
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
t is the tenure in years
The calculator uses the below formula to calculate the total maturity amount for cumulative FDs.
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
n is the number of times the amount is compounded
t is the tenure in years
Example:
Ms. Olive is planning to put ₹7 lakhs into a fixed deposit scheme. The interest rate offered by the FD is 6.75% per annum and the tenure of the FD is 7 years. Olive wishes to receive her interest amount every quarter. Let’s use the formula to calculate the interest earned and the payout amount in this non-cumulative FD.
M = P + (P x t x r / 100)
M = 7,00,000 + (7,00,000 x 7 x 6.75/100)
M = 7,00,000 + (7,00,000 x 7 x 0.0675)
M = 7,00,000 + 3,30,750
M = ₹10,30,750
Interest = 10,30,750 - 7,00,000
Interest = ₹3,30,750
Interest payable every three months = 3,30,750 / 28 = ₹11,812.5
So, if Ms. Olive puts ₹7 lakhs in an FD scheme, earning an interest rate of 6.75% for 7 years, he would get a payout of ₹11,812.5 every quarter. She will receive her principal amount of ₹7 lakhs at the end of the tenure.
If Ms. Olive invests the same amount for the same interest rate and same tenure in a cumulative FD, here’s how much maturity amount she will earn.
M = P (1 + r/n) ^ (n x t)
M = 7,00,000 (1 + 0.0675) ^ (1 x 7)
M = 7,00,000 x (1.0675)^(7)
M = 7,00,000 x 1.5797020650667
M = ₹11,05,791.44
Ms. Olive will earn a maturity amount of around ₹11.05 lakhs at the end of the FD tenure.
How To Use The Union Fixed Deposit Calculator?
The online fixed deposit calculator is quite easy to use. You can calculate the interest amount and maturity amount using the below steps.
- Choose whether you wish to receive your payout annually or at the end of the fixed deposit tenure.
- Enter the amount you wish to put in the FD scheme.
- Mention the interest rate offered by the financial institutions is offering you.
- Specify the tenure of the fixed deposit.
Once you have entered these details, the FD calculator will give you the interest earned and maturity amount.
Benefits Of Using The Union Fixed Deposit Calculator
Here’s how the FD calculator can be of use to you.
- The FD calculator computes the maturity amount and the interest earned accurately, based on the details you enter into the tool.
- Since calculating FD returns manually can be a long process, the calculator saves you a lot of time.
- The calculator can be used to compare the maturity amount of FDs offered by different banks and financial institutions.