Interest Calculation On Fixed Deposit And Savings Account

Savings account and a fixed deposit help you earn profit via interest accumulation on the amount parked. To be able to better financial decisions it is imperative you evaluate this interest levied. It will allow you to use the money accordingly and make the most of both the accounts. 

Calculating interesting on the savings account, the below formula is used- 

A = P (1+r/n) ^ nt here, 

I = P x r x t and 

I = Interest Amount

P = Principal Amount

r = Rate of interest

t = Term of interest calculation

You can either use this formula in excel or manually to make the interest calculations.

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While the formula for calculating interest on fixed deposit is - 

SI = P x r x t/100 here,

SI = simple interest

P = principal amount

r = rate of interest

t = term

While the compound interest formula for calculating FD interest rates is as follows:

CI = P {(1 + i/100)n – 1} here,

CI = compound interest

P = principal amount

i = rate of interest

n = number of years

Moreover, you may use the FD calculator available at the lender’s website. This is a simple tool which requires the specified inputs of the above-mentioned values to give results.

As compared to a savings account, a fixed deposit account offers a higher rate of interest starting from 8.75% onward for a flexible tenure of 5 years. It is a safe and easy method to accumulate wealth and to grow your corpus. You can easily book your FD online. While senior citizens get 0.25% higher rate of interest on FD. Thus, making FD a worthy source of investment. 

For More Details: How to Calculate the Interest on Fixed Deposit and Saving Account?