BOI FD Calculator

The BOI FD calculator helps you calculate the maturity amount for your deposit based on the prevailing interest rate for a particular tenure. The calculator can help you compare different tenures with different interest rates from various banks. This makes it easier for the users to decide which bank and tenure gives them the highest maturity amount for their fixed deposit.

A fixed deposit, commonly known as FD, is an investment option with a limited maturity period and a fixed rate of return. NBFCs (Non-Banking Financial Companies), banks, post-office branches, and large corporations can offer FDs to the public. You can invest your money into FDs and receive a higher interest rate than what you receive in a regular savings account.

The FD calculator calculates the interest and maturity amount for non-cumulative and cumulative FDs. In a non-cumulative fixed deposit, you can choose the frequency of your payout. It can be monthly, quarterly, half-yearly, or annually. On the other hand, cumulative fixed deposits offer the maturity amount only at the end of the FD tenure.

How Does The BOI Fixed Deposit Calculator Work?

Here’s the formula used to calculate the simple interest (non-cumulative FD):

Where,

M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
t is the tenure in years

Here’s the formula used to calculate the compounding interest (cumulative FD):

Where,

M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
n is the number of times the amount is compounded
t is the tenure in years

Example:

Ms. Freeda is looking to invest ₹8.5 lakhs into a fixed deposit. The bank is offering her an interest rate of 6.2% for her investment. She is planning to choose a tenure of 6 years for her FD. She wishes to receive her payout every quarter.

M = P + (P x t x r / 100)
M = 8,50,000 + (8,50,000 x 6 x 6.2/100)
M = 8,50,000 + (8,50,000 x 6 x 0.062)
M = 8,50,000 + 3,16,200
M = ₹11,66,200

Interest = 11,66,200 - 8,50,000
Interest = ₹3,16,200
Interest payable every three months = 3,16,200 / 24 = ₹13,175

So, if Ms. Freeda invests ₹8.5 lakhs in a fixed deposit that earns interest of 6.2% for 6 years, she will earn a total amount of ₹11.66 lakhs and a payout of ₹13,175 every quarter. She will also get her principal amount of ₹8.5 lakhs at the end of the tenure.

Let’s see how much Ms. Freeda will be able to earn as a maturity amount if she chooses to keep her investment until the end of the tenure. Here, we have to use the compound interest formula.

M = P (1 + r/n) ^ (n x t)
M = 8,50,000 (1 + 0.062)^(1 x 6)
M = 8,50,000 x (1.062)^6
M = 8,50,000 x 1.4346537586372
M = ₹12,19,456

So, if Ms. Freeda chooses to keep her investment until maturity instead of receiving quarterly payouts, she will receive an amount of around ₹12.19 lakhs.

How To Use The BOI Fixed Deposit Calculator?

The fixed deposit calculator is designed to be easy to use and 100% accurate in calculating the maturity amount of your deposit.

• Select whether you wish to receive your payout annually or compounded at maturity.
• Enter the deposit amount you wish to invest in.
• Specify the interest rate of the fixed deposit.
• Mention the tenure of the deposit.

After the details are entered, the calculator will show you the payout amount or maturity amount instantly.

Benefits Of Using The BOI Fixed Deposit Calculator

Here are some points as to how the fixed deposit calculator can help you:

• The FD calculator simplifies the complex and time-consuming process that involves multiple variables.
• The calculator saves time and accelerates the calculation process.
• The calculator allows you to make an informed decision by showing the maturity amount and interest rates offered by different financial institutions.