How Fixed Deposits (FDs) Interest is calculated per month?

With the right tool, you can calculate the monthly interest you will earn in a fixed deposit (FD)

A fixed deposit (FD) is a popular investment scheme. It requires a lump sum investment for a fixed duration. Every year, the FD earns interest at the pre-decided rate. When the FD matures, the interest is paid along with the invested principle. Since FDs do not rely on market conditions, they are among the safest investment choices. Investors are guaranteed a fixed rate of interest and capital protection.

You can also invest in an FD in different ways. You have the option of investing in either a cumulative or non-cumulative FD. The interest on a cumulative FD is aggregated over the deposit's duration and then fully reimbursed at maturity. Whereas non-cumulative FDs give you interest monthly, half-yearly, or annually. Read on to find out how monthly interest for a ₹1 lakh or ₹2 lakh FD is calculated.

How to calculate ₹1 lakh FD interest per month?

It is important for investors to know how much they can make in interest after they invest in an FD. Every bank offers different rates for a fixed time duration. If you are investing ₹1 lakh for 1 year in an FD with IDFC FIRST Bank, you can get an interest rate of anywhere between 3.5% to 7.75%. The rate is more for senior citizens.

How to calculate ₹2 lakh FD interest per month?

Investing a large corpus in equities is risky. An FD is a safer financial scheme for investing a sizeable amount. At maturity, you will receive the promised amount along with interest. If you invest ₹2 lakhs, your interest per month will be anywhere between 2% and 3%, which will amount to about ₹500 per month. You can use an FD calculator or simple or compound interest formula to calculate the interest.

Why you should use an FD calculator?

An FD calculator is the best tool for calculating interest in an FD. It is beneficial because:

• Calculating an FDs maturity amount can be a difficult and time-consuming. It is possible to calculate it without breaking sweat using an online FD calculator. With the click of a button, an FD deposit calculator does all the work for you.
• It saves time when performing complex calculations.
• You can use an FD return calculator to analyse the maturity amount and interest rate of several banking institutions' FDs.

Historical FD interest rates

FD interest rates have seen a huge fluctuation over the last two decades. In the late 2000s, it was somewhere between 8% to 10%. It fell to around 7% in the 2010s, with the current interest floating under 6%. Only a few premier banks in the country, such as IDFC FIRST Bank, offer up to 7.75% interest in FDs.

Hence, it makes sense to open an FD with IDFC FIRST Bank. Apart from the attractive interest rate, IDFC FIRST Bank also offers unparalleled digital and customer service. You can also use the IDFC FIRST Bank FD calculator to know how much your interest will be. Whether it is a monthly interest for ₹1 lakh or ₹10 lakh FD, the IDFC FIRST Bank calculator can help you out with the FD calculations you need. Visit our website or download IDFC FIRST Bank Online banking app to apply now.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.