Central Bank of India FD Calculator
A fixed deposit calculator is an online tool that helps you calculate the maturity amount that you would receive at the end of your tenure. Calculating the fixed deposit returns manually can be exhaustive. So, you can use the fixed deposit calculator to get results correctly and instantly.
A fixed deposit is a type of savings account that pays a fixed rate of interest for a specified period. They are one of the most popular investment instruments in India because of their stability and guaranteed returns. They are suitable for individuals, seeking a low-risk investment option and for those looking to park their funds for the short or medium term.
Here, we will be focusing on two types of fixed deposits: non-cumulative and cumulative fixed deposits. In a non-cumulative FD, the interest earned is paid to the depositor regularly. The interest will be paid at regular intervals, such as every month, every quarter, every six months, or once a year.
In a cumulative FD, the interest is accrued or collected until the maturity period ends. The interest generated over a year or cycle is added to the last investment, which increases the principal amount. When your FD matures, you will get the maturity amount (Maturity amount = Principal amount + Interest earned).
How Does The Central Bank Of India Fixed Deposit Calculator Work?
We can use the following formula to calculate the maturity amount for a non-cumulative fixed deposit.
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
We can use the following formula to calculate the maturity amount for a cumulative fixed deposit.
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:
Mr. Lalith is looking to invest ₹9.5 lakhs in a fixed deposit scheme. The scheme is offering an interest rate of 7.5% per annum. The duration of the fixed deposit is 10 years. She is looking to get her interest income every quarter. By using the calculator formula, we can calculate the interest income and total amount.
M = P + (P x t x r / 100)
M = 9,50,000 + (9,50,000 x 10 x 7.5/100)
M = 9,50,000 + (9,50,000 x 10 x 0.075)
M = 9,50,000 + 7,12,500
M = ₹16,62,500
Interest = 16,62,500 - 9,50,000
Interest = ₹7,12,500
Interest payable every three months = 7,12,500 / 40 = ₹17,812.5
If Mr. Lalith invests ₹9.5 lakhs in an FD at an interest rate of 7.5% per annum for 10 years, he will earn a payout of ₹17,812.5 every three months and the principal amount of ₹9.5 lakhs at the end of the tenure.
If Mr. Lalith invests the same amount for the same interest rate for the same number of years, this is how much he would earn at the end of the tenure.
M = P (1 + r/n) ^ (n x t)
M = 9,50,000 (1 + 0.075)^(1 x 10)
M = 9,50,000 (1.075)^10
M = 9,50,000 x 2.0610315621647
M = 19,57,979.98 (approximately).
How To Use The Central Bank Of India Fixed Deposit Calculator?
Your fixed deposit maturity amount depends upon the amount invested, interest rate, and FD tenure. Here’s how you can use the calculator to determine your FD maturity amount.
- Select whether you want to receive your payout regularly or at maturity.
- Enter the amount you want to invest in the fixed deposit scheme.
- Select the interest rate for the FD.
- Input the FD tenure of your choice.
The calculator will display the interest earned and the maturity amount of your FD on your screen.
Benefits Of Using The Central Bank Of India Fixed Deposit Calculator
The fixed deposit calculator offers the following benefits:
- The fixed deposit calculator is simple to use and has a highly responsive interface.
- The calculator can help you provide quick and accurate results in a matter of seconds.
- The calculator can help you check your fixed deposit returns on your investment and put your money to work accordingly.