The Federal Bank fixed deposit calculator is an online interface designed to help you estimate the maturity amount and interest earnings on your fixed deposits with Federal Bank. The calculator quickly computes your returns by providing essential details such as the investment amount, tenure, and interest rate, giving you a clear idea of what to expect at maturity.
What is Federal Bank FD and How Does it Work?
Federal Bank Fixed Deposit (FD) is a savings scheme offered by Federal Bank. Under this scheme, you can invest a lump sum amount for a fixed time-period at a already-defined interest rate. It’s a popular investment option in India due to its safety, fixed returns, and flexibility in tenure.
Federal Bank Fixed Deposit (FD) allows you to invest a lump sum with Federal Bank for a fixed tenure, starting from 7 days to 10 years, at a predetermined interest rate that remains unchanged throughout. You can receive interest payouts monthly, quarterly, annually, or at maturity. You get the principal and accrued interest upon maturity, with early withdrawals subject to penalties. Interest earned is taxable per your income slab, with TDS applicable if it exceeds a specific limit.
How to Use Stack's Federal Bank FD Calculator?
Using Stack's Federal Bank FD calculator is simple and user-friendly. Follow these steps:
1. Enter the Principal Amount: The initial amount you plan to invest in the FD.
2. Input the Annual Interest Rate: This is the interest rate offered by the bank.
3. Select the Period: In years or months, choose the duration you want to keep your money in the FD.
4. Choose the Compounding Frequency: Select how often the interest should be compounded (quarterly, annually).
5. Calculate: Click the 'Calculate' button to get the Maturity Amount and Total Interest Earned instantly.
The Formula to Calculate the Federal Bank FD Maturity Amount
We calculate the FD maturity amount and returns using the following formula:
A = P (1 + r/n) ^ n*t
Where:
A = Total value of maturity
P = Principal Amount
r = Annual Interest Rate
t = Time (in years)
n = Number of times interest is compounded
This formula calculates your maturity amount directly, allowing you to understand how the investment amount will grow over time.
Calculation of Federal Bank FD Returns
Suppose you invest ₹40,000 (P) in a fixed deposit for five years (t) at an annual interest rate of 7% (r), with interest compounded twice yearly (n = 2).
Given:
Principal Amount (P) = ₹40,000
Annual Interest Rate (r) = 7% or 0.07
Time (t) = 5 years
Number of times interest is compounded (n) = 2 (Half-Yearly)
A = P (1 + r/n) ^ n*t
A = 40000 (1 + 0.07/2) ^ 2*5
A = 40000 (1 + 0.035) ^ 10
A = 40000 (1.035) ^ 10
A = 40000 * 1.41
A = 56,400
The maturity amount after five years would be ₹56,400, and the interest earned over this period would be ₹16,400.
Benefits of Using the Federal Bank FD Calculator
The Federal Bank FD calculator offers several benefits:
- Accuracy: Get precise calculations for the maturity amount and interest earned.
- Time-Saving: Avoid manual calculations and get instant results with a few clicks.
- Comparison: Compare different FD schemes to choose the best one for your needs.
- Financial Planning: Plan your investments better with accurate projections.
- User-Friendly Interface: Easy to use, even for those with minimal technical knowledge.
How Can Federal Bank FD Calculator Help You?
The Federal Bank FD Calculator helps you make informed investment decisions by showing your potential returns. The calculator instantly shows the maturity value by inputting details like the deposit amount, interest rate, and duration, helping you understand how much your investment will grow.
This calculator is handy for comparing different FD schemes, planning your finances, and maximising your savings strategy. It eliminates manual calculations and complex formulas, allowing you to estimate your earnings and choose the best FD plan that aligns with your financial objectives.
Visit YouTube
