How to Utilize CredBharat's Fixed Deposit Calculator
CredBharat's FD deposit calculator is user-friendly and provides precise calculations for your FD maturity amount. Simply input the following information:
Once entered, click the "Calculate" button, and the maturity amount will be promptly displayed on the same page.
How an FD Calculator Can Benefit You
Discover how FD calculators can be of assistance:
Benefits of Employing the FD Calculator
Utilizing CredBharat's FD interest calculator offers numerous advantages, including:
Understanding Cumulative and Non-Cumulative Fixed Deposits
Cumulative Fixed Deposit: A cumulative fixed deposit calculates the interest, compounds it, and disburses it upon maturity.
Non-Cumulative Fixed Deposit: Non-cumulative fixed deposits, on the other hand, provide periodic interest payouts, with options for monthly, quarterly, half-yearly, and yearly payments.
Compute Compound Interest with CredBharat's FD Calculator
With CredBharat's compound interest calculator, you can determine the compounded interest that will accumulate on your fixed deposit. Simply provide the necessary information and click the "Calculate" button to obtain an accurate estimation of your compound interest amount.
How is Fixed Deposit Interest Computed?
Fixed deposit interest is typically calculated using two methods: simple interest and compound interest.
Simple Interest
This involves a predetermined interest rate for a fixed duration. It is calculated by multiplying the annual interest rate, the principal amount, and the tenure in years.
For example, if you deposit Rs.1 lakh at an interest rate of 10% per annum for 5 years, the interest amount at maturity, using simple interest calculation, would be as follows:
SI: P x R x T/100
SI: 1,00,000 x 10 x 5/100 = 50,000
The maturity amount at the end of the 5-year deposit term would be Rs.1.5 lakh.
Compound Interest
Compound interest is the interest earned on both the principal and previously earned interest. It is calculated by multiplying the interest rate with the principal amount, raised to the power of the number of compounding periods per year multiplied by the number of years.
The formula for calculating compound interest is as follows:
A = P (1 + r/n)^(n*t)
Where: A = Maturity amount P = Principal amount r = Interest rate in decimal form n = Number of compounding periods in a year t = Number of years
For example, if you deposit Rs.10,000 for a 3-year tenure with a quarterly compounding interest rate of 10%, the interest earned at maturity would be calculated as follows:
A = 10,000 * (1 + 0.1/4)^(4 * 3) A = 10,000 * (1 + 0.025)^12 A = 10,000 * (1.025)^12 ? Rs. 13,449
Compound Interest (CI) can be determined by subtracting the Principal Amount from the Maturity Amount:
CI = Maturity Amount - Principal Amount CI = Rs. 13,449 - Rs. 10,000 = Rs. 3,449
Maturity amount at the end of the 3-year deposit tenure: Rs.13,449