DSP FD Calculator

The DSP FD calculator is a tool that helps you calculate the interest earnings and maturity value in a fixed deposit. The calculator takes into account the amount of deposit, deposit term, rate of interest per annum, and types of FD to generate the result. Once the details are given, the FD calculator calculates the earned interest and maturity value instantly.

Fixed deposits are an investment option that allows depositors to park their idle money for a fixed period and earn fixed interest on it at regular intervals during the chosen tenure or at maturity. FDs are considered to be an ideal instrument for achieving short-term financial goals and for parking emergency and post-retirement corpora.

Fixed deposits are mainly categorized into non-cumulative FD and cumulative FD. A non-cumulative fixed deposit pays the accumulated interest regularly to the investor. A cumulative fixed deposit accumulates the interest amount until maturity and the interest is compounded every quarter or every year.

How Does The Koshex DSP FD Calculator Work?

Below is the formula for calculating the interest in 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

Below is the formula for calculating the maturity in 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. Justin is looking to put ₹8 lakhs into a fixed deposit scheme. The FD is offering an interest rate of 7.6% per annum. The tenure of the FD is 5 years. He wishes to receive his interest income once a year. When we put the above values in the simple interest formula, we get:

M = P + (P x t x r / 100)
M = 8,00,000 + (8,00,000 x 5 x 7.6/100)
M = 8,00,000 + (8,00,000 x 5 x 0.076)
M = 8,00,000 + 3,04,000
M = ₹11,04,000

Interest = 11,04,000 - 8,00,000
Interest = ₹3,04,000
Interest payable every year = 3,04,000 / 5 = ₹60,800

So, if Mr. Justin invests ₹8 lakhs into an FD, earning an interest of 7.6% for 5 years, he will earn an interest of ₹60,800 annually. He will also get his principal amount of ₹8 lakhs at the end of the tenure.

If Mr. Justin invests the same amount of money but puts it into a cumulative fixed deposit, here’s how he will get:

M = P (1 + r/n) ^ (n x t)
M = 8,00,000 (1 + 0.076)^(1 x 5)
M = 8,00,000 x (1.076)^5
M = 8,00,000 x 1.4423191064054
M = ₹11,53,855 (approximately).

So, if Mr. Justin invests ₹8 lakhs into a cumulative fixed deposit with an interest rate of 7.6% for a tenure of 5 years, he will earn a maturity amount of around ₹11.53 lakhs.

How To Use The DSP Fixed Deposit Calculator?

To use the calculator, simply follow the steps mentioned below:

• Select the periodic payout option or cumulative payout option.
• Enter the principal amount that you are planning to invest in a fixed deposit.
• Type in the interest rate or the rate of return that the financial institution is offering you.
• Specify the duration or tenure of the investment.

Once the details are entered, the calculator will show you the interest income and maturity amount.

Benefits Of Using The DSP Fixed Deposit Calculator

The advantages of using an FD calculator are many, including:

• The FD calculator gives you instant and accurate results. There is minimal scope for errors.
• The calculator can help you compare the returns and see which scheme offers the best returns for you.
• The tool is free to use and you can use it anytime you want at your convenience.