Taurus FD Calculator
The Taurus Fixed Deposit calculator can be used to determine the interest and the amount that it will accrue at the time of maturity. The calculator will help investors understand whether their investment will be enough to achieve their goals in the future. It can also help them see whether the deposit amount fits in their budget.
Fixed deposit (FD) is a popular investment option offered by many banks and financial institutions. Users can deposit a fixed amount of money in an FD for a specific period and earn interest on the deposit amount. In FDs, you can deposit money for as short as a week to 10 years.
There are two main types of FD and they are non-cumulative fixed deposits and cumulative fixed deposits. A non-cumulative FD is a type of FD where the interest earned is paid out at regular intervals as per the investor’s choice. The interest paid out could be monthly, quarterly, half-yearly, or annually, depending on the FD scheme.
A cumulative FD is a type of investment where the interest earned on the principal amount is re-invested into the FD itself. Instead of being paid out periodically, the interest is compounded and paid along with the principal amount at the FD tenure.
How Does The Taurus Fixed Deposit Calculator Work?
The calculator uses the below formula to calculate the maturity for non-cumulative fixed deposits.
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 fixed deposits.
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. Varunika is looking to deposit ₹8 lakhs in an FD scheme. The FD is offering an interest rate of 7.25% per annum for a tenure of 8 years. She wishes to receive her interest income every quarter. Using the calculator formula, we get:
M = P + (P x t x r / 100)
M = 8,00,000 + (8,00,000 x 8 x 7.25/100)
M = 8,00,000 + (8,00,000 x 8 x 0.0725)
M = 8,00,000 + 4,64,000
M = ₹12,64,000
Interest = 12,64,000 - 8,00,000
Interest = ₹4,64,000
Interest payable every three months = 4,64,000 / 32 = ₹14,500
So, if Ms. Varunika deposits ₹8 lakhs in an FD, earning an interest of 7.25% per annum for a tenure of 8 years, she will earn an interest of ₹14,500 every quarter. She will receive her principal amount of ₹8 lakhs at the end of the tenure.
Using the same example, let’s calculate the maturity amount for Ms. Varunika if she chooses to deposit her money in a cumulative FD.
M = P (1 + r/n) ^ (n x t)
M = 8,00,000 (1 + 0.0725)^(1 x 8)
M = 8,00,000 x (1.0725)^8
M = 8,00,000 x 1.7505656679967
M = ₹14,00,452
If Ms. Varunika deposits ₹8 lakhs in an FD for an interest of 7.25% per annum for 8 years, she will earn a maturity amount of over ₹14 lakhs at the end of the tenure.
How To Use The Taurus Fixed Deposit Calculator?
Here are a few easy steps to guide you in using the fixed deposit calculator.
- Choose whether you want to receive an annual payout or a cumulative payout.
- Enter the deposit amount you want to deposit in an FD.
- Mention the interest rate offered by the bank for the FD.
- Specify the tenure or the duration of the FD.
Once the details are entered, the interest earned and maturity amount will be displayed instantly.
Benefits Of Using The Taurus Fixed Deposit Calculator
There are many advantages of using the FD calculator.
- The FD calculator can help you get the exact amount you will earn at the end of your tenure so that you can plan your future accordingly.
- The calculator allows you to compare the maturity amounts of different financial institutions easily.
- The calculator provides error-free results every time.