Regarding Bank FD interest calculation

Save Share

This query is : Resolved

Chupita (Querist)

14 September 2010 Please guide me for Bank FDR interest calculation. I want to verify the return amount of FD but i am not able to get exact amount which is written on FD Receipt
Principal amount - 1500000
FD Interest rate - 9%
for period - 1 year & 11 months

Maturity amount - 1779100.64
Please guide me formula so i can check for other FDR receipt also.

Praveen Bajaj

Praveen Bajaj (Expert)

15 September 2010 Falguni,

Generally Banks calculate interest on FD on a compounding basis. Frequency of compounding is different for different FD products. In your case interest is compounded quarterly. Please see the table below

Period Amount(Begin) Int rate Amount(end)
Qtr 1 1500000 2.25% 1533750
Qtr 2 1533750 2.25% 1568259
Qtr 3 1568259 2.25% 1603545
Qtr 4 1603545 2.25% 1639625
Qtr 5 1639625 2.25% 1676517
Qtr 6 1676517 2.25% 1714238
Qtr 7 1714238 2.25% 1752809
2 mos 1752809 1.50% 1779101

Excuse me for the mis-alligned table.

Interest rate above is for the quarter (i.e 9%/4). Through Simple excel calculation you can reproduce this table. Please get back in case its not clear.

Chupita

Chupita (Querist)

16 September 2010 Thank you Mr. Bajaj. Thank you for your kind guidance. It will definitely help me for my work.

Falguni

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now