What is The Union Bank FD Calculator?

A Union Bank FD Calculator is a small online tool that helps you check how much money your Fixed Deposit will become in the future. You only enter three things — the amount you want to deposit, the number of years you will keep it in the bank, and the interest rate. The calculator then shows your maturity amount and the interest you will earn.

In simple words, before opening an FD in the bank, it lets you know “If I keep this money today, how much will I get back on maturity?”

It saves you from guessing or doing manual calculations and helps you decide the correct tenure and deposit amount according to your need — whether you are saving for safety, monthly income, or a future expense.

Union Bank FD Calculator – How the Bank Actually Calculates Your Maturity

When you ask maturity value in a Union Bank branch, the staff does not manually calculate interest. They enter your amount, tenure and age category into the core banking system (CBS). The system automatically applies banking formulas and produces the maturity figure.

This calculator follows the same method. So the result you see here is a structured banking-style estimate, not a rough guess.

Which Formula Union Bank Uses

1. Compound Interest (Cumulative Fixed Deposit)

Union Bank applies quarterly compounding for most retail fixed deposits. Every 3 months, the interest earned is added to your deposit, and the next quarter’s interest is calculated on the new balance.

Bank Formula – A = P × (1 + r / 4)^(4t)

• A = maturity amount
• P = principal amount
• r = annual interest rate
• t = tenure in years

This method is called compound interest. You can understand this mathematical principle here: learn how compound interest works .

Simple Interest (Monthly Income or Very Short FD)

If you choose a monthly payout deposit, the bank does not reinvest interest into the principal. Instead, interest is calculated separately and paid to you periodically.

The Formula – Interest = Principal × Rate × Time

How the Bank Processes Your Deposit Internally

The banking system follows a fixed sequence:

• Tenure in days is converted into years
• Senior citizen extra interest is added
• Quarterly compounding cycles are applied
• Final maturity is rounded according to banking rules

So a 444-day FD is internally treated as roughly 1.21 years before calculation.

Real Example

Case: Anil Agarwal

• Anil deposits ₹1,00,000 for 1 year at 6.25%.
• He expects ₹6,250 interest. But because the bank adds interest every quarter, each new quarter earns interest on the previous quarter’s balance.
• So the bank does not calculate simple interest — it calculates compound interest.
• Actual maturity becomes approximately ₹1,06,434 instead of ₹1,06,250.
• This extra amount is called the compounding effect.

How to Use the Calculator Properly

1. Enter Deposit Amount – Type the exact amount you plan to invest in the fixed deposit.
2. Select Tenure – Choose the number of days, months or years according to your FD plan.
3. Enter Interest Rate – Use the rate offered by the bank branch or shown in the FD rate chart. The calculator shows only the recently updated rates of Union Bank.
4. Choose Age Category – Select senior citizen if applicable, because banks provide higher interest.

After entering values, the calculator estimates the maturity amount using the same compounding logic used by the bank.

Quick Insight: Most people compare FD rates between banks but ignore compounding frequency. Quarterly compounding often makes more difference than a 0.10% rate change.

How to Calculate Union Bank FD Manually (Pen & Paper Method)

Even without a calculator, you can still estimate your FD maturity yourself. Bank software also follows the same formula — it only automates the steps.

Step 1 — Convert Interest Rate

Suppose the FD rate is 6.25% per year. Convert it into decimal: 6.25% = 0.0625

Step 2 — Convert Tenure into Years

If tenure is not exactly 1 year, convert days into a year fraction. Days ÷ 365 = years
Example: 444 days ÷ 365 = 1.21 years

Step 3 — Apply the Bank Formula

A = P × (1 + r/4)^(4t)

Example:

• P = ₹1,00,000
• r = 0.0625
• t = 1 year

First, calculate the quarterly rate: r / 4 = 0.0625 ÷ 4 = 0.015625

Then:

• A = 1,00,000 × (1.015625)⁴
• Result ≈ ₹1,06,400 (approx)

This is why bank maturity becomes slightly higher than a simple percentage calculation.

How to Calculate FD in MS Excel

You can also calculate maturity at home using Microsoft Excel or Google Sheets.

Step-by-Step Excel Method

• Open Excel
• Enter deposit amount in A1 (example: 100000)
• Enter interest rate in A2 (example: 6.25)
• Enter tenure years in A3 (example: 1)

Use This Formula: =A1*(1+(A2/100)/4)^(4*A3)

Excel will instantly show maturity value using the same quarterly compounding system that banks use.

For Monthly Income Estimate

Monthly Interest = (Principal × Rate) ÷ 12

Example:

(100000 × 6.25%) ÷ 12 ≈ ₹520 per month

Why Manual Calculation Helps

Many people blindly trust numbers shown by agents or even bank staff without understanding the method. When you know the formula, you can verify maturity yourself before investing. This becomes especially useful when comparing 1-year, 400-day and 444-day deposits. Sometimes a small change in tenure gives more benefit than a higher interest rate.

Easemoney Tip: Use the calculator first, then confirm once using Excel — you will understand how compounding actually works.

What the Union Bank FD Calculator Actually Helps You Do

Many people think an FD calculator only shows the maturity amount. But in reality, it helps you make a deposit decision before going to the bank branch. Instead of depending on an agent or guessing interest, you can test different tenures, compare returns and understand whether a shorter FD or longer FD suits your requirement.

For example, a person may assume a 5-year FD gives the highest return. But sometimes a special tenure like a 400-day or 444-day deposit gives a better effective return with less lock-in period. So the calculator works like a pre-planning tool. You enter the amount → compare tenures → understand income → then visit the branch already prepared.

Top 10 Practical Features of Union Bank Fixed Deposits

1. Flexible tenure options starting from 7 days up to 10 years. You can use FD for both short parking and long saving.
2. Quarterly interest compounding in cumulative deposits increases the effective yield compared to simple interest deposits.
3. Senior citizens receive an additional 0.50% interest, and super senior citizens receive 0.75% additional interest.
4. Certain special tenures (around 400–450 days) sometimes offer higher returns than traditional 1-year deposits.
5. A loan or overdraft facility is available againstan FD — you can borrow money without breaking the deposit.
6. Premature withdrawal is allowed with a small penalty in interest rate instead of full cancellation.
7. Auto-renewal facility automatically reinvests your FD on maturity if you forget to visit the branch.
8. Tax-saving FD option provides Section 80C deduction but comes with a mandatory 5-year lock-in.
9. TDS is deducted only if the yearly interest crosses the government threshold, otherwise no tax deduction occurs at the bank level.
10. All bank deposits are insured under DICGC insurance up to ₹5,00,000 per depositor, including interest.

Note – Actual interest rates and rules may change. Always confirm details with your bank branch before investing.

Union Bank FD Interest Rates (Effective 11 February 2026)

Deposit Tenure	Interest Rate
7–14 Days	2.75%
15–30 Days	3.00%
31–45 Days	3.25%
46–90 Days	4.50%
91–120 Days	4.75%
121–180 Days	5.50%
181–270 Days	5.75%
271–364 Days	6.10%
1 Year	6.30%
Above 1 Year to 399 Days	6.30%
400 Days	6.40%
401–443 Days	6.30%
444 Days (Highest Slab)	6.60%
445 Days – 2 Years	6.30%
Above 2 Years – 996 Days	6.25%
997 Days	6.20%
998 Days – 3 Years	6.25%
3 – 10 Years	6.00%

Senior citizens receive +0.50% additional interest, and super senior citizens receive +0.75% extra over the above rates.

RBI Depositor Protection & Safety Rules

Bank fixed deposits in India are protected under DICGC insurance up to ₹5,00,000 per depositor per bank (principal + interest). Official RBI guideline: Read RBI Depositor Protection FAQ

• Premature withdrawal usually carries about 1% interest penalty
• No interest if FD is closed within 7 days
• Unclaimed matured FD earns savings account interest
• Large deposits should be split across multiple banks for safety

Income Tax & TDS Rules on FD Interest

FD interest is taxable under “Income from Other Sources”.

• TDS deducted if interest exceeds ₹50,000 (regular citizens)
• ₹1,00,000 threshold for senior citizens
• 10% TDS if PAN submitted
• 20% TDS without PAN

TDS is an advance tax — final tax depends on your income slab.

Real Life Example — Alok Singh

Alok Singh invests ₹10,00,000 in a 400-day FD at 6.30%. Interest earned ≈ ₹63,000. Bank deducts TDS (10%) = ₹6,300. He receives ₹56,700. He belongs to 30% tax bracket:

• Total tax liability = ₹18,900
• Already deducted = ₹6,300
• Remaining tax payable while filing ITR = ₹12,600

Actual post-tax return ≈ 4.4%

FD Calculator: Frequently Asked Questions