Union Bank Savings Rates Calculator

Compound Interest Formula:

\[ FV = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Principal Amount (P):

USD

Annual Interest Rate (r):

Compounding Frequency (n):

Time Period (t):

years

Future Value (FV):

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1. What is the Compound Interest Formula?

The compound interest formula calculates the future value of an investment or savings account by accounting for both the initial principal and the accumulated interest from previous periods. Union Bank offers competitive savings rates up to 4.25% as of September 2025.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ FV = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Where:

\( FV \) — Future value of the investment
\( P \) — Principal investment amount
\( r \) — Annual interest rate (in decimal form)
\( n \) — Number of compounding periods per year
\( t \) — Time the money is invested for in years

Explanation: The formula shows how your money grows over time as interest is earned on both your initial deposit and the accumulated interest.

3. Importance of Compound Interest

Details: Compound interest is a powerful financial concept that allows savings to grow exponentially over time. The more frequently interest is compounded, the faster your money grows. Understanding this concept is crucial for long-term financial planning.

4. Using the Calculator

Tips: Enter your initial deposit amount, the annual interest rate (Union Bank offers up to 4.25%), select how often interest is compounded, and specify the time period. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between simple and compound interest?
A: Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and accumulated interest.

Q2: How often does Union Bank compound interest?
A: Union Bank offers various compounding options including daily, monthly, quarterly, semi-annually, and annually, depending on the specific account type.

Q3: Are there any fees associated with Union Bank savings accounts?
A: Fees vary by account type. Please consult with Union Bank for specific account details and any associated maintenance fees.

Q4: Is the interest rate fixed or variable?
A: Union Bank savings account rates may be fixed or variable depending on the account product. Current promotional rates are up to 4.25% as of September 2025.

Q5: Are there minimum balance requirements?
A: Minimum balance requirements vary by account type. Please check with Union Bank for specific account requirements.