Mahindra FD Calculator
The Mahindra Fixed Deposit calculator can enable you the approximate maturity amount and interest amount you would earn when you put your money in fixed deposits. The calculator can empower you to make informed investment decisions by showing you the amount you could earn from your investment in fixed deposits.
Fixed deposits, also known as FDs, are one of the popular ways to invest money in India. With FDs, you deposit a specific amount for a set period and receive a fixed rate of interest in return. The duration of an FD can range from as short as 7 days to as long as 10 years. Thus, fixed deposits give you flexibility in choosing your investment horizon.
Fixed deposits are categorized into non-cumulative fixed deposits and cumulative fixed deposits. A non-cumulative FD can be defined as an investment scheme that provides regular interest payments to the investor. A cumulative fixed deposit can be defined as a fixed deposit that accrues interest every quarter or year and gets added to the investor’s portfolio upon maturity.
How Does The Mahindra Fixed Deposit Calculator?
Below is the formula used to calculate the maturity for non-cumulative fixed deposits (simple interest formula).
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 used to calculate the maturity amount for cumulative fixed deposits (compound interest formula).
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. Udhay is looking to put his bonus of ₹3.75 lakhs in a fixed deposit scheme. The FD is offering an interest rate of 6.5% per annum. The tenure of the FD is 4 years. He wishes to receive the interest income every year. By putting the values in the calculator formula, we get:
M = P + (P x t x r / 100)
M = 3,75,000 + (3,75,000 x 4 x 6.5/100)
M = 3,75,000 + (3,75,000 x 4 x 0.065)
M = 3,75,000 + (97,500)
M = ₹4,72,500
Interest = 4,72,500 - 3,75,00
Interest = ₹97,500
Interest payable every year = 97,500 / 4 = ₹24,375
So, if Mr. Udhay puts ₹3.75 lakhs in an FD with an interest rate of 6.5% per annum for 4 years, he will earn an annual payout of ₹24,375 and the principal amount of ₹3.75 lakhs at the end of the tenure.
Using the same example, let’s see how much Mr. Udhay will earn if he puts the money in a cumulative fixed deposit.
M = P (1 + r/n) ^ (n x t)
M = 3,75,000 (1 + 0.065)^(1 x 4)
M = 3,75,000 x (1.065)^4
M = 3,75,000 x 1.286466350625
M = ₹4,82,424.88 (approximately)
Mr. Udhay will earn a maturity amount of around ₹4.82 lakhs at the end of the tenure if he puts ₹3.75 lakhs in an FD, earning an interest of 6.5% per annum for 4 years.
How To Use The Mahindra Fixed Deposit Calculator?
The below step-by-step guide can help you use the FD calculator to get a clear idea of the returns and security that await you.
- Select whether you wish to receive an annual payout or a cumulative payout.
- Fill in the deposit amount you are considering saving in a fixed deposit.
- Enter the preferred tenure of your FD.
- Mention the interest rate of the FD.
An approximate maturity amount and interest amount will be displayed on your screen as per the values and numbers entered by you in the fixed deposit calculator.
Benefits Of Using The Mahindra Fixed Deposit Calculator
The fixed deposit calculator offers many essential benefits to make your decision-making process seamless.
- The FD calculator estimates a maturity amount and interest amount you could receive if you choose to save your money through FDs.
- The calculator can help you compare and analyze the returns of different financial institutions so that you can choose the best FD scheme for yourself.
- The calculator can provide the results in a few seconds while manual calculations can take a lot of your time.