How to calculate Interest on Fixed deposit

This query is : Resolved

Abhishek Kumar Srivastava (Querist)
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13 October 2008 Hi,
I created one FD with SBM @10.5% for 300 days. Start date is 6th Oct 2008, Maturity date is 2nd Aug 2009 and Principal is Rs. 40,000/-. They have given FD certificate to me with final amount as Rs. 43,569/-. When I do my calculation I get maturity amount as Rs. 43,579/-.

I am using periods from (1) 6/10/2008-31/12/2008, (2) 1/1/2009-31/3/2009, (3) 1/4/2009-30/6/2009 and (4) 1/7/2009-2/8/2009.

Can anyone help me understand if I am doing something wrong here?
If there is any FD calculator already available then please point me to that.

Thanks,
Abhishek

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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13 October 2008 It depends upon:
1. At what intervals they credit interest
2. What is the number of days they take for a year, 365 or 360.

Abhishek Kumar Srivastava

Abhishek Kumar Srivastava (Querist)
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13 October 2008 OK. But there must be some standards that banks must be following? Or am I wrong and banks can choose whatever they want?

Can you explain calculation with 365 days a year?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 October 2008 There are no standards, except that they go by conventions which can vary slightly from bank to bank. You have to go through the terms and conditions.

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