Union Bank of India FD Premature Withdrawal Penalty Calculator

What is the Union Bank of India FD Premature Withdrawal Penalty Calculator?

Union Bank FD Premature Withdrawal Calculator is a useful tool that estimates your final payout if you withdraw your fixed deposit before maturity. It calculates the revised amount by factoring in applicable interest rates, tenure, deposit amount, and penalties. Since Union Bank of India FD premature withdrawal is subject to specific terms, using the calculator ensures you understand the impact before making any financial decision.

Benefits of Union Bank of India FD Premature Withdrawal Penalty Calculator 

Union Bank of India FD premature withdrawal penalty calculator can be useful in the following ways:

• Quick Estimates: Instantly check your revised FD payout using the FD Premature Withdrawal Penalty Calculator without the need to visit a branch. This saves both time and effort.
• Informed Decisions: Helps you understand the impact of early withdrawal on your returns so that you can confidently choose the best financial option.
• Avoids Surprises: Provides a clear and transparent breakdown of your expected return after penalties, so you know exactly what to expect.
• User-Friendly Interface: The calculator requires only basic details such as deposit amount, tenure, and withdrawal date to estimate your revised payout.
• Customised Results: The tool uses applicable FD interest rates for general and senior citizen customers of Union Bank, giving you accurate and personalised results.

How Does the Union Bank FD Premature Withdrawal Penalty Calculator Work?

The calculator applies the compound interest formula to determine the final maturity amount based on the actual period the deposit was held:

The following are illustrations of the calculation process for both general and senior citizens:

1. For General Citizens

   Let’s assume a general customer made the following FD investment in the Union Bank of India:

   • Deposit Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 6.60%
   • Premature Withdrawal: After 6 months (180 Days)

   The applicable Union Bank FD interest rate for 6 months was 5.00% on the booking date.

   Interest Calculation:

   • Applicable Rate: 5.00%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 5.00% – 1.00% = 4.00%

   The booked rate was 6.60%, but 4.00% is lower, so this rate will be applied.

   Outcome: The revised payout will be based on 4.00%, lower than the original 6.60% booked rate, as per the applicable Union Bank of India FD rates for the period the deposit was held.

2. For Senior Citizens

   Now consider a senior citizen with similar investment details:

   • Deposit Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 7.10%
   • Premature Withdrawal: After 6 months (180 Days)

   The applicable senior citizen FD interest rate for 6 months was 5.50%.

   Interest Calculation:

   • Applicable Rate: 5.50%
   • Penalty Deduction: 1.00%
   • Final Interest Rate = 5.50% – 1.00% = 4.50%

   The booked rate was 7.10%, but 4.50% is lower, so this rate will be applied.

   Outcome: The senior citizen receives a payout based on 4.50% interest, as per the applicable Union Bank of India FD rates for senior citizens for the period the deposit was held.

Union Bank FD Premature Withdrawal Penalty Charges

Union Bank of India applies a penalty on the applicable interest rate for premature withdrawals. For retail term deposits below ₹2 crore that have been held for 7 days or more, interest is paid at 1% less than the applicable rate for the period the deposit was with the bank. No interest is paid if the deposit is withdrawn within the first 7 days. Tax Saver FDs cannot be withdrawn prematurely, except in specific cases such as the account holder's demise or a court order.

Key Takeaways

The Union Bank FD Premature Withdrawal Penalty Calculator helps you estimate how much you will get if you withdraw your fixed deposit before maturity. It calculates your return by deducting the penalty. For retail term deposits below ₹2 crore, Union Bank typically deducts a 1% penalty from the applicable interest rate based on the actual tenure the deposit was held. No interest is paid if the FD is withdrawn within the first 7 days.