FD calculator is an online tool which is designed to help customers get an estimate of the returns they will get on investing in fixed deposits. United Bank of India provides a varied bunch of schemes to choose from but before cherry picking any of these schemes, it is imperative to make use of the United Bank of India FD calculator to make a well-informed decision.
How to Use United Bank of India FD Calculator?
Go through the steps stated below the following image to understand working of this fixed deposit calculator:
Step 1: Click here to get redirected to FD calculator.
Step 2: Enter the desired FD amount.
Step 3: Check the current United Bank of India FD rates mentioned below:
|Tenure||Rate of Interest (% p.a.)|
|Regular Citizens||Senior Citizens|
|7 days to 14 days||4.00%||4.00%|
|15 days to 29 days||4.00%||4.00%|
|30 days to 45 days||4.00%||4.00%|
|46 days to 60 days||4.00%||4.00%|
|61 days to 90 days||4.50%||4.50%|
|91 days to 180 days||5.00%||5.00%|
|181 days to 269 days||5.75%||5.75%|
|270 days to <1 year||6.00%||6.00%|
|> 1 year < 2 years||6.25%*||6.75%|
|> 2 years < 3 years||6.25%*||6.75%|
|> 3 years < 5 years||6.00%*||6.50%|
|5 years and above||6.00%*||6.50%|
Step 4: Enter the United Bank FD interest rate.
Step 5: Enter the period or tenure of FD. Also check tenure type, i.e. months or years from the drop-down box.
Step 6: Hit on the “Calculate” button.
The calculated maturity amount will be displayed on the box just below the tool. Here, customers can also find the total interest computed separately.
Please note that the calculator currently computes compound interest on monthly basis.
Simple Interest vs. Compound Interest
Refer to the table below to spot the differences between simple and compound interest:
|Simple Interest||Compound Interest|
|Interest is given only on the amount deposited in the FD.||Interest is given on the deposit amount as well as|
|It is the fixed percentage on the FD’s principal amount.||It accrues on the FD’s principal amount and the accumulated interest of previous cycles.|
|Computation of simple interest is easy.||Computation of compound interest is complex.|
|Principal remains the same throughout the tenure.||Principal keeps on changing (increases) till the end of tenure.|
|Returns are limited.||Returns are high.|
Payout of Interest vs. Reinvestment of Interest
There are two payment options offered to the customers of United Bank of India FD w.r.t. accrued interest. One is payout of interest which is offered in the regular fixed deposit. Here the accrued interest is paid monthly, quarterly, half-yearly or yearly.
For example, if someone invests Rs. 1.5 lakh for 1 year @ 8% interest. He/she will receive monthly interest of Rs. 1,000 and Rs. 12,000 in the entire year. Maturity amount will be equal to principal amount plus last installment. Rs.1, 01, 000 (monthly interest payout) and Rs. 1, 03, 000 (quarterly interest payout)
For long term FDs, say for 5 years, the other option of reinvestment of interest works better. Here the interest is withheld and reinvested with the principal amount plus the interest of previous cycle. When taken for long term, the interest accumulated amounts to significant numbers.
For example, if someone invests Rs. 1.5 lakh for 5 years @ 8% interest. He/she will receive a total interest of Rs. 72,892 (quarterly compounding).