Union Bank recurring deposits are one of the significant investment products that allow investors to deposit a fixed amount in the account at regular intervals. With recurring deposits, you get interest on the deposited amount and cash out the returns at maturity.
Union bank offers two RD schemes to its customers with interest rates ranging from 5.25% to 6.70% as per the investment tenure. With an investment period ranging from six months to 10 years, you can start investing with just INR 50. Additionally, depositors can quickly check the maturity value of their UBI recurring deposit with the help of the Union Bank RD Calculator. You can easily open recurring deposit accounts, and there is no need to put forward a hefty process to open a Union Bank RD Calculator.
What is a Union Bank RD Calculator?
The Union bank RD Calculator is a financial tool that helps compute maturity returns on the amount invested in the recurring deposit. While stepping into the investment journey, you must get acquainted with Union bank's recurring deposit interest rate and maturity returns. All you have to do is deploy the Union Bank RD calculator, and you will get a clear idea of how much to invest and how long. It is better to make an informed decision with the UBI RD Calculator. The user-friendly interface of the high-tech calculator provides easy computation and quick results.
How to Use a UBI RD Calculator?
Union Bank RD Calculator is an AI-powered tool that entails a user-friendly interface. Users can efficiently operate a UBI RD calculator and determine the monthly amount that must be deposited to secure the expected maturity value. To calculate the recurring deposit maturity amount, follow the below-depicted steps:
Step 1: Visit Urban Money's RD calculator at the top of the page.
Step 2: Use the toggle bar to set the values of the fields on the calculator dashboard.
- Monthly Deposit Amount: The deposit amount you wish to invest in the Union Bank recurring deposit.
- Rate of Interest (Per Annum): Choose the Union bank recurring deposit interest rate you will get as per the investment tenure. Additionally, you can enter the ongoing UBI interest rate to get a better estimate of the RD maturity amount.
- Time Period: Now choose the investment tenure you wish to stay invested with the Union Bank Recurring Deposits.
Step 3: Once you have successfully entered the values for the fields mentioned above, the calculator will calculate the maturity amount. As a result, you will get the following details:
- Estimated Return: The interest return or the profit you will earn on the deposited amount.
- Maturity Amount: The overall amount you will get on maturity, i.e. invested amount plus returns.
Advantages of Using a Union Bank RD Calculator?
As recurring deposits revolve around continuous investments, the computation part becomes hefty and time-consuming. That's where a Union Bank Recurring Deposit Calculator comes into the role play.
The UBI RD calculator offers an easy way to escape this challenging situation. Now you get easy access to returns while having a clear idea about investment returns and the maturity amount you will get at maturity.
In addition, the Union Bank RD calculator provides users with the following benefits:
- Plan future expenses and finances with clarity.
- Determine the figure you will get at maturity to comprehend the financial obligation.
- User-friendly interface with round-the-clock accessibility.
- Users can use it for unlimited time to compare various case scenarios.
- Remove time-consuming, daunting calculations and provide results in a fraction of a second.
- Results are based on the provided inputs; thus, there is no scope for errors.
- Use the Union bank recurring deposit calculator free of cost.
- Best fit for newbies as well as existing investors to make reinvestment decisions.
- Provides users with an expected maturity figure in addition to investment returns.
How is the Interest and Maturity amount on a Union Bank RD Calculated?
Interest on a Union Bank recurring deposit is calculated on the basis of the monthly deposit amount, i.e., the principal amount, the investment period, and the Union bank recurring deposit interest rate. The interest rate is a specified percentage of the deposit amount the depositor gets at regular intervals (monthly/yearly). The longer the deposit time frame, the more the interest will accrue.
You can compute the interest and maturity amount through the Union Bank RD Calculator or hinge to manual computation at your convenience. To calculate the maturity amount through an RD calculator, enter the asked values in the text field, and it will provide the results at a lightning-fast speed.
Alternatively, use the mathematical formula to determine the RD amount:
A = P(1+r/n) ^ nt
- A represents the RD amount the depositor will receive at the date of maturity.
- P denotes the invested amount in the Union Bank RD account.
- R stands for the Union bank recurring deposit interest rate.
- T is the investment tenure.
- N is the number of times the recurring deposit has been compounded
For a better understanding, let's consider an example. Person A invested INR 5,000 in recurring deposits every month for one year at the interest rate of 6.50%. Entering these values in the given formula:
A = 5000 (1+6.50/4)^4*12
At maturity, Person A will get estimated returns of INR 62,144.
Union Bank RD Interest Rates
Before starting your investment journey with Union Bank Recurring Deposits, you must get familiar with the bank's interest rates on their RD schemes.
Here's what you can expect in terms of returns from the bank.
|RD Investment Tenure||RD Interest Rate (General Citizens)||RD Interest Rate (Senior Citizens)|
|181 Days - One Year||5.25 Percent||5.75 Percent|
|One Year||6.30 Percent||6.80 Percent|
|Above One Year - 598 Days||6.30 Percent||6.80 Percent|
|599 Days||7.00 Percent||7.50 Percent|
|600 Days - 699 Days||6.30 Percent||6.80 Percent|
|700 Days||7.25 Percent||7.75 Percent|
|Above 700 Days - Two Years||6.30 Percent||6.80 Percent|
|Above Two Years - 799 Days||6.30 Percent||6.80 Percent|
|800 Days||7.30 Percent||7.80 Percent|
|801 Days - Below Three Years||6.30 Percent||6.80 Percent|
|Three Years||7.30 Percent||7.80 Percent|
|Above Three Years - Five Years||6.70 Percent||7.20 Percent|
Note: These interest rates are applicable for investment amounts below two crores.
Key Highlights of Union Bank Recurring Deposits
Union Bank offers two products under the recurring deposit category. These are Cumulative Deposit and Union Monthly Plus. Here are the key highlights of both schemes to understand which plan will be best suitable for you.
- Indian residents, including individuals, minors, organisations, associations, societies etc., can open a CD account in Union Bank. Additionally, it offers a joint account feature.
- The monthly instalment amount starts as low as INR 50 and multiples of INR 10 after that.
- The depositor gets a flexible investment tenure option from six months to 120 months.
- Investment tenure, once chosen, can't be altered. However, in case of missed monthly deposits, the depositor can convert RD into fixed deposits by giving a genuine reason to the bank,
- Union bank recurring deposit interest rates are applicable quarterly. The depositor gets the maturity amount within a month of making the last deposit.
Union Monthly Plus
- Individuals, HUF, and corporations can invest in Union Monthly Plus.
- The depositor gets the option to choose the "core amount", which acts as the base amount for future monthly instalments. However, monthly instalments can't go below the base amount.
- The investment period starts from six months and can go up to 60 months.
- In premature closure, the depositor doesn't have to pay penalty charges, and the same applies to missed payments.
- RD Interest rates in the case of Union Monthly Plus are computed on a daily product basis.
- Depositors can secure a loan on RD at maximum, and the loan amount can be 75% of the amount accumulated in the ROAD.
- Union Bank Recurring Deposit Union Monthly Plus scheme comes with a nomination facility.
- The minimum investment amount is INR 100, and at maximum, you can invest INR 1,00,000
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Frequently Asked Questions (FAQs)
Does Union bank have an RD account?
Yes, Union Bank offers two types of RD accounts to its customers, i.e. Cumulative Deposit Account and Union Monthly Plus Account.
What is the highest Union bank recurring deposit interest rate?
The highest Union bank recurring deposit interest rate is 6.7%. You can unlock this interest rate by investing in UBI RD for over three years.
What is the minimum amount to open an RD account with Union bank?
You can open a Union Bank Recurring Deposit account with a minimum investment amount of INR 50.
Does Union bank offer a premature withdrawal facility on recurring deposits?
Yes, a premature withdrawal facility is available with Union Bank RD’s.
Do senior citizens receive any benefits from Union bank RD?
Senior citizens receive an additional 0.50% benefit in terms of interest rate when they invest in Union Bank RD.
What if I delay my monthly instalment payment of the Union Bank RD?
If you delay paying a monthly instalment, you will not have to pay any penalty charges. Additionally, if you wish to discontinue the scheme, you can transfer your RD into fixed deposits for the rest of the investment period.
Can you open a Union Bank RD account online?
Yes, you can easily open an Rd account online in Union Bank. All you have to do is visit the official portal, enter the asked details and choose the RD scheme along with the deposit amount.
Is Union bank safe for recurring deposits?
If you wish to start investing in recurring deposits, you can pin your hopes on the Union Bank RD. It offers attractive interest rates on recurring deposits, helping to earn higher returns on maturity.