Result
Features of City Union Bank Fixed Deposit
- Premature withdrawal: All City Union Bank FDs (aside from the tax-saving FD) allow early withdrawal of funds. But in accordance with their standards, the City Union Bank charges a fee for each premature withdrawal.
- Facility of nomination: Investors in City Union Bank FDs have the option of nominating beneficiaries for their FDs. Investors with City Union Bank FDs have the option of auto-renewal.
- Safety: All deposits made at City Union Bank are covered by the RBI’s Deposit Insurance Scheme.
- Additional payments: Once a City Union Bank FD has started, investors cannot put more money into it. However, they are able to start a brand-new City Union Bank FD with the updated sum.
Benefits of City Union Bank Fixed Deposit Interest Calculator
- Simple to use: Calculating the maturity amount of a fixed deposit is much simpler when done online. Calculating the interest rate manually can be difficult and consumes a lot of time. The City Union Bank fixed deposit interest calculator only requires a few simple inputs from depositors to give an estimated result, including the deposit amount, deposit tenure, and compounding frequency (quarterly, half-yearly, and annual compounding).
- Find the estimated amount of the deposit: Knowing the maturity amount can help you decide whether the investment plan will meet your financial objectives at the time of maturity. Interested depositors should be aware of the estimated amount before investing in an FD scheme.
- Correct calculation: Manually calculating the FD maturity amount might not produce correct results. By using an online City Union Bank FD calculator, depositors can avoid performing long calculations and lower their risk of making mistakes.
How is City Union Bank FD Interest Rate Calculated?
Simple Interest and Compound Interest are the two ways through which interest on a fixed deposit is calculated.
- Simple Interest
Simple interest is the interest received on an investment over a predetermined period of time at a predetermined rate of interest. It is computed by averaging the principal amount, the annual interest rate, and the number of years the fixed deposit is for.
The formula for calculating simple interest:
The Simple interest= P x R x T/100
Here,
SI stands for Simple Interest.
P stands for Principal amount invested.
R stands for the Rate of interest (in percentage)
T stands for Tenure (duration for which deposit is kept in FD account)
For example, if a sum of Rs 20,000 is invested for 3 years at 10% p.a., then at the time of maturity,
SI = 20,000*10*3/100 = Rs 6,000
Then, the maturity amount will be Rs 26,000.
- Compound Interest
The interest that is accrued on both the principal and the accumulated interest from previous periods is known as compound interest. The compound interest is calculated by multiplying the principal sum by the interest rate, and then it is multiplied by the number of compounding periods in a year. This results in the gradual growth of the investment over time, as the interest is continuously reinvested and contributes to the overall amount.
The formula for Compound Interest:
Amount (A)= P {(1+r/n) ^ (n * t)}
Here,
A stands for Maturity amount
P stands for Principal amount
r stands for the rate of interest
n stands for the number of compounding in a particular year
t stands for the number of years
For instance, if a sum of Rs 10,000 is invested by a depositor for 3 years at a 10% compound interest rate (quarterly compounding), then at the time of maturity,
A is calculated by 10,000 1 + (0.¼) ^ (4 * 3)
Then, 10,000 (1 + 0.025) ^ (12)
10,000 (1.025) ^ (12) will then be Rs. 13,449.
Compound Interest (CI) Earned over 3 years = The Maturity Amount – The Principal Amount
Then, the compound interest will be:
13,449 – 10,000 = Rs. 3,449
What are City Union Bank FD Interest Rates?
Conclusion
With a City Union Bank (CUB) fixed deposit, saving money over time is easy. A fixed deposit is the best option if you want to receive higher interest rates on your invested funds safely and on time. It is now very simple to check the City Union Bank (CUB) fixed deposit interest rate and make judgments by using a City Union Bank FD calculator available online.
The interest rates of fixed deposits for the year 2023 are:
Tenure | Normal Citizen FD Rate |
7 days- 14 days | 5% |
15 days – 1 month 14 days | 5.5% |
1 month 15 days – 2 months 28 days | 5.75% |
2 months 29 days – 5 months 27 days | 6% |
5 months 28 days – 8 months 26 days | 6.25% |
8 months – 11 months | 6.5% |
City Union Bank FD Calculator : FAQs
Yes, the City Union Bank fixed deposit interest calculator is very easy to use. It only requires a few simple inputs from depositors to give an estimated result.
Hindu Undivided Families and resident individuals are eligible to open fixed deposit accounts with City Union Bank.
Yes, it provides guaranteed returns in the form of interest on the fixed deposit accounts of the depositors. So, fixed deposits with City Union Bank are completely safe and reliable.