PNB FD Calculator
A PNB FD calculator will help you calculate how much rate of interest you can earn by investing in a fixed deposit for a specified tenure. All you need to do is provide some information such as your fixed deposit amount, rate of interest, tenure, and payout option. Then, the calculator will help you understand how much interest amount and maturity amount you will earn by your fixed deposit amount.
Fixed deposit is an investment plan where you can deposit a lump sum amount for a fixed period and earn interest. The rate of interest depends on the principal amount invested and investment tenure.
Out of the different types of fixed deposits, we are going to take a look at non-cumulative and cumulative fixed deposits. In non-cumulative FDs, you can earn interest income on a monthly or quarterly basis. In cumulative FDs, you will receive both the principal amount plus compound interest on maturity.
How Does The PNB Fixed Deposit Calculator Work?
The fixed deposit calculator uses the below formula to calculate the maturity amount for non-cumulative FDs (simple interest).
Where,
M is the Maturity amount
P is the Principal amount
r is the rate of interest per annum
t is the tenure in years
The FD calculator uses the following formula to calculate the maturity for cumulative FD (compounding interest).
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. Darshini is planning to put ₹10 lakhs in a fixed deposit. The FD is offering her an interest rate of 7.5%. The tenure of the FD is 8 years. She wants to receive the payout amount every year. Let’s use the calculator formula to see how much she will be earning every year.
M = P + (P x t x r / 100)
M = 10,00,000 + (10,00,000 x 8 x 7.5/100)
M = 10,00,000 + (10,00,000 x 8 x 0.075)
M = 10,00,000 + 6,00,000
M = ₹16,00,000
Interest = 16,00,000 - 10,00,000
Interest = ₹6,00,000
Interest payable every year = 6,00,000 / 8 = ₹75,000
So, if Ms. Dharshini invests ₹10 lakhs in a fixed deposit, earning an interest rate of 7.5% for a tenure of 8 years, she will earn ₹75,000 every year as her yearly payout. She will also receive a principal amount of ₹10 lakhs at the end of the tenure.
Let’s say Ms. Dharshini invests the same amount in a cumulative FD. Here’s how much she will earn as a maturity amount.
M = P (1 + r/n) ^ (n x t)
M = 10,00,000 (1 + 0.075) ^ (1 x 8)
M = 10,00,000 (1.075)^8
M = 10,00,000 x (1.7834778255617)
M = ₹17,83,478 (approximately).
So, if Ms. Darshini invests ₹10 lakhs at an interest rate of 7.5% for 8 years in a cumulative FD, she will earn a maturity amount of around ₹17.83 lakhs.
How To Use The PNB Fixed Deposit Calculator?
Using the PNB FD calculator is pretty simple. We have written a step-by-step guide for you below:
- The first step is to choose whether you want to receive an annual payout or a cumulative payout.
- The second step is to enter the amount you wish to invest in the fixed deposit.
- The third step is to mention the interest rate you are being offered for the FD.
- The final step is to enter the tenure of the FD.
When the details are entered by you, the calculator will show you the payout amount or maturity amount.
Benefits Of Using The PNB Fixed Deposit Calculator
The FD calculator comes with many advantages and we have mentioned a few of them.
- The fixed deposit calculator requires minimal effort as you don’t have to perform complicated calculations manually.
- The calculator saves you a lot of time by displaying the results in seconds.
- The calculator provides accurate results so you can plan your finances better.