How To Calculate Fd Interest

Enter the deposit period in months.

How to calculate fd interest. The interest on fd schemes is calculated in two ways simple and compound interest. Enter the bank interest rate in percentage. Earn more on your investment. Malaysia fixed deposit calculator.

Compound interest formula how to calculate compound interest compounding of interest on fixed deposits explained. Use this calculator to work out the annualized interest rate on your investment or to help you decide how much to invest or to work how much money your investment could earn for you. To get a clear idea about the two methods let s consider an example. Higher deposit amount means higher interest.

Higher percentage of interest rate yields greater interest amount. The fd rate can be calculated in two ways. It doesn t matter how often the interest is calculated. Under the simple interest method the interest rate is reckoned on the initial amount.

This addition of interest to the principal is called compounding. Enter the initial deposit amount. Type of deposit cumulative or. How to maximise the returns on your deposit.

As per the terms conditions of fixed deposit accounts of the bank in case of premature closure of fixed deposit including sweep in partial closure the interest rate will be 1 00 below the contracted rate or the rate applicable for the period the deposit has remained with the bank whichever is lower except for the tenor of 7 14 days. While under the compound interest method interest is calculated on the principal and thereon. Enter the deposit amount in the first field fixed deposit amount enter the interest rate in the next field rate of interest enter the tenure duration the period for which you want fd to be active. Deposit or principal amount.

Fixed deposit fd calculator. It is always calculated on the initial deposit amount principal. Longer tenor results in higher interest.