UCO Bank FD Calculator
The UCO Bank FD calculator is an online tool that is designed to help users get an idea of their expected earnings at the end of a fixed deposit tenure. The calculator takes into account the principal amount, tenure, and interest rate to calculate the maturity amount in the end. Hence, a fixed deposit calculator can help you understand if your principal amount can help you achieve your goals after a certain period.
A fixed deposit (FD) is a type of deposit in which a sum of money is locked for a fixed period. The tenure of the deposit could be anywhere from a few days to several years. Fixed deposits pay the depositor a fixed rate of interest. Once the term comes to maturity, the depositor receives the invested principal sum with maturity interest.
There are different types of fixed deposit schemes available in India. We are going to talk about two of them such as cumulative fixed deposit and non-cumulative fixed deposit. A cumulative FD pays the amount to the depositor at regular interest. This ensures a passive income for the depositor.
In a cumulative FD, interest will be calculated at a certain compounding interest and paid at the rate decided by the lender depending upon the period of deposits. In this scheme, the deposit gets the benefit of earning interest on both principal and interest components at the end of the tenure.
How Does The UCO Bank Fixed Deposit Calculator Work?
Below is the formula for calculating the maturity amount in 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
Also, this is the formula for the maturity amount in 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. Beena is looking to invest ₹7 lakhs in a fixed deposit. The interest rate of the FD is 7% and she chooses a tenure of 7 years. Also, she wishes to receive her payout every year. This is how the simple interest calculation works for her FD.
M = P + (P x t x r / 100)
M = 7,00,000 + (7,00,000 x 7 x 7 / 100)
M = 7,00,000 + 3,43,000
M = ₹10,43,000
Interest = 10,43,000 - 7,00,000
Interest = ₹3,43,000
Interest payable every year = 3,43,000 / 7 = ₹49,000
So, if Ms. Beena invests ₹7 lakhs, which offers an interest of 7% per annum for a tenure of 7 years, she would earn a payout of ₹49,000 every year and the principal amount of ₹7 lakhs at the end of the tenure.
Let’s say that Ms. Beena invests the same amount in a non-cumulative FD. This is how much she will receive at the end of the maturity.
M = P (1 + r/n) ^ (n x t)
M = 7,00,000 (1 + 0.07)^(1 x 7)
M = 7,00,000 x (1.07)^7
M = 7,00,000 x 1.6057814764784
M = ₹11,24,047.03353488
So, if Ms. Beena invests ₹7 lakhs in a cumulative FD, giving an interest of 7% per annum for 7 years, she will earn a maturity amount of around ₹11.24 lakhs at the end of the tenure.
How To Use The UCO Bank Fixed Deposit Calculator?
Following are the steps to use the UCO Bank FD calculator.
- Fill in the amount you would like to invest in FD.
- Type in the interest rate offered by the FD.
- Enter the tenure of the deposit.
- Select the type of payout you wish to receive.
When the details are entered into the calculator, you can see your period payout amount or cumulative amount.
Benefits Of Using The UCO Bank Fixed Deposit Calculator
Some of the advantages of using the fixed deposit calculator are listed below:
- The bank fixed deposit needs minimal effort as you do not have to do the calculations manually.
- The calculator saves time as you can get the result in seconds.
- The calculator is free, so you can use it as many times as you like.
- Since the calculator gives accurate results, you will be able to plan your finances better.