Whether you use a bearing guided bit or guide bushing and straight bit, using a template with inside square corners (or four strips attached to the surface) will give you a cutout with a corner radius that's one half of the bit diameter - 1/2" bit, 1/4" radius - and you will get the same corner radius if the OD of the router base is located on the inside of the template, makes no difference what the diameter is, only how much offset you have to build in to the template. To get a specific corner radius in your cutout, you need a template opening to the finished size and with the required corner radius, if you're using a piloted bit. Using a guide bushing, the inside dimensions of the template, as well as the corner radius, will have to be adjusted based on the combination of guide bushing and bit being used.