Nippon FD Calculator

The Nippon Fixed Deposit (FD) calculator is an online tool that helps you plan your FD investments. The calculator allows you to compute the interest earned and the maturity amount. Several banks and financial institutions provide attractive FD rates on your fixed deposit investment options.

Fixed Deposit is one of the safest investment options available to investors in India. Investors can earn relatively higher interest through FD in comparison to a regular savings account. The interest rate depends on the type of lenders (public sector, private sector, or small finance banks). The tenures in FD schemes are flexible. Investors can choose the tenure according to their inconvenience.

Fixed deposits can be mainly classified into two types - non-cumulative and cumulative fixed deposits. A non-cumulative FD is a type of fixed deposit where the accrued interest is paid regularly to the depositor. The interval in which the interest is paid may vary from monthly to quarterly and sometimes to semi-annually.

Cumulative fixed deposits mean a fixed deposit where the interest is accumulated until the end of the maturity period. The interest that you earn in one year or throughout one cycle of this FD is added or reinvested to the previous principal amount, thus increasing the principal amount.

How Does The Nippon Fixed Deposit Calculator Work?

The below formula is used to calculate the maturity for simple interest (non-cumulative) FDs.

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. Naren is planning to put ₹2.5 lakhs in a fixed deposit. The FD is offering an interest of 7.8% per annum. The tenure of the FD is 3 years. He wishes to receive the interest once a year. Let’s use the formula to calculate the interest amount and payout amount.

M = P + (P x t x r / 100)
M = 2,50,000 + (2,50,000 x 3 x 7.8/100)
M = 2,50,000 + (2,50,000 x 3 x 0.078)
M = 2,50,000 + 58,500
M = ₹3,08,500

Interest = 3,08,500 - 2,50,000
Interest = ₹58,500
Interest payable every year = 58,500 / 3 = ₹19,500

So, if Mr. Naren puts ₹2.5 lakhs in an FD, earning an interest of 7.8% per annum for three years, he would get an interest payout of ₹19,500 every year and a principal of ₹2.5 lakhs at the end of the tenure.

If he puts the same amount for the same interest and tenure in a cumulative FD, here’s how much amount he would have accrued at the end of the tenure.

M = P (1 + r/n) ^ (n x t)
M = 2,50,000 x (1.078)^3
M = 2,50,000 x (1.078)^3
M = 2,50,000 x 1.252726552
M = ₹3,13,181.638

So, if Mr. Naren puts ₹2.5 lakhs in an FD at an interest rate of 7.8% for 3 years, he will earn a maturity amount of around ₹3.13 lakhs.

How To Use The Nippon Fixed Deposit Calculator?

The fixed deposit calculator makes it easy to estimate your fixed deposit interest amount even before opening an FD account.

• Select whether you wish to receive an annual payout or the payout at maturity.
• Mention the principal amount you want to invest.
• Enter the rate of interest you will be receiving through the FD.
• Specify the number of years of investment.

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

Benefits Of Using The Nippon Fixed Deposit Calculator

Listed below are some of the major advantages of using the FD calculator.

• The fixed deposit calculator is fast and easy to make interest return calculations.
• The calculator can help you get error-free results.
• The calculator helps you to compare the returns on various interest rates offered by different financial institutions.
• The calculator makes it easy for you to decide the best FD schemes along with the ideal maturity amount.