Mirae FD Calculator
The Mirae FD calculator is a simple yet powerful tool that can help you make informed investment decisions by offering accurate calculations of the estimated returns and final value of your investment. The calculator can be used by anyone and you don’t need advanced knowledge to access it. The calculator produces error-free results instantly, saving you time and energy.
A fixed deposit is a financial investment instrument offered by banks and non-banking financial companies (NBFCs) where investors can deposit money and get a higher rate of interest than a traditional savings account.
Fixed deposit investments can be categorized into two main types - cumulative and non-cumulative fixed deposits.
A non-cumulative FD is a variation in which the interest gained is paid out to the investor at monthly, quarterly, or yearly intervals, depending on the selected payout frequency.
A cumulative FD is a type of investment in which the interest earned on the principal is reinvested and distributed at the end of the maturity period. This means that interest builds up over time instead of being paid out frequently.
How Does The Mirae Fixed Deposit Calculator Work?
The calculator uses the below formula to calculate the maturity for 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
The calculator uses the below formula to calculate the maturity amount for 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. Kala is looking to invest ₹3.5 lakhs in a fixed deposit scheme. The interest rate of the FD is 6.5%. The duration of the FD is 4 years. She wants to receive her interest income every six months. Let’s use the calculator formula to determine the interest income and payout.
M = P + (P x t x r / 100)
M = 3,50,000 + (3,50,000 x 4 x 6.5/100)
M = 3,50,000 + (3,50,000 x 4 x 0.065)
M = 3,50,000 + 91,000
M = ₹4,41,000
Interest = 4,41,000 - 3,50,000
Interest = ₹91,000
Interest payable every six months = 91,000 / 10 = ₹9,100
So, if Ms. Kala puts in ₹3.5 lakhs in a fixed deposit scheme, offering an interest of 6.5% for 4 years, she would earn an interest of ₹9,100 every six months. She would receive her principal amount of ₹3.5 lakhs at the end of the tenure.
Let’s say Ms. Kala invests the same amount in a cumulative fixed deposit, here’s how much she will earn as her maturity amount.
M = P (1 + r/n) ^ (n x t)
M = 3,50,000 (1 + 0.065)^(1 x 4)
M = 3,50,000 x (1.065)^4
M = 3,50,000 x 1.286466350625
M = ₹4,50,263 (approximately).
If Ms. Kala invests ₹3.5 lakhs in a cumulative fixed deposit, which earned her an interest of 6.5% for a term of 4 years, she would earn a maturity amount of around ₹4.5 lakhs.
How To Use The Mirae Fixed Deposit Calculator?
Using the fixed deposit calculator is easy. Here is a step-by-step guide:
- Select whether you want to receive the payout regularly or at maturity.
- Enter the amount you want to invest in fixed deposits.
- Mention the interest rate offered by your bank on FDs.
- Specify the tenure of your investment in months or years.
The FD calculator will display the estimated returns and the maturity amount of your investment.
Benefits Of Using The Mirae Fixed Deposit Calculator
There are many advantages of using the fixed deposit calculator.
- The FD calculator offers accurate calculations of the estimated returns and final value of your investment.
- The calculator can be used from the comfort of your home and you can learn all the necessary information from the results to make informed investment decisions without having to visit a bank.
- The calculator saves you time and effort by giving instant results, without having you to do complex manual calculations.