Category: Investment

Calculate Fixed Deposit Maturity Value

The reason why people choose to invest in the fixed deposit is the assurity of stipulated returns at regular intervals. There is certainty of receiving the investments amount and the accrued interest at the maturity of the plan. Thus, the risk factors associated with these term investments are less. Also, there is no hard and fast rule of making long term investment.

The investment period can be as short as 7 days or lengthy up to a decade. The depositor has the liberty to select the tenure of investment as per his/her financial goals. Moreover, the investment amount and the interest payout frequency is also determined by the candidate opening a Fixed deposit account. The interest can be received monthly, quarterly or annually. The depositor can even opt for cumulative interest.

fixed deposit

Cumulative and Non-Cumulative Fixed Deposit:

Cumulative Fixed Deposit- In this type of deposit, the interest is not payable at the monthly, quarterly, half-yearly or annual rests. Rather it is compounded and rolled out at the time of maturity of the plan along with the original investment amount. The people who do not require regular cash flow can go for this plan.

Non-Cumulative Fixed Deposit- In the non-cumulative form of deposits, the interest is paid out at the monthly, quarterly, half-yearly and annual intervals. This plan is most suitable for people who want to gain regular income.

Types of Interest Calculations:

The Interest of Fixed Deposit is calculated using two different methods – the simple interest method and the compound interest method.

Simple Interest It is the interest that is calculated as a percentage of the initial investment, for the whole duration. This is the straight forward and the fastest method to calculate the interest on the amount deposited. The interest amount calculated using simple interest remains the same throughout the tenure of deposit.

How to Calculate FD Interest at Simple Interest:

The simple interest can be calculated using the simple interest calculator that reveals the maturity value of the plan and the interest yield. The formula used is as follows:

Simple Interest Formula:

A = P (1 + rt)

Where:

A = Total Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

r = Rate of Interest per year in decimal; r = R/100

R = Rate of Interest per year as a percent; R = r x 100

t = Time Period involved in months or years  

Compound Interest – It is the interest which is computed as a percentage of the renewed principal, i.e. original principal along with the accumulated interest of prior periods. Under this method, the interest earned in the previous intervals is added to the initially invested amount. Hence the amount on which the interest for the next period will be calculated rises.

How to Calculate FD Interest at Compound Interest:

To calculate the compound interest use the compound interest FD calculator that will help to compute the realistic maturity value and the amount of interest earned. The compound interest formula is:

Compound Interest Formula:

A = P (1 + r/n) nt

Where:

A = the maturity value of the investment including interest

P = the principal investment amount (the initial deposit amount)
r = the annual interest rate
n = the number of times that interest is compounded per year
t = the number of years the money is invested for

Though the interest calculation method is decided by the bank but the account holder can anticipate the returns by calculating the maturity value using FD calculator. It is simple to use and provides the true insight of the future gain. The user just has to enter the amount, tenure and rate of interest in the relevant fields. Once the information is fed in the calculator the required result is displayed. To clarify how to calculate fixed deposit maturity value let’s take an example:

For Example – The expiration value of term investment of ₹ 10,000 made for the period of 5 years at the quarterly compounding interest rate of 6.00% p.a. will be ₹ 13,469. The total accrued interest will be ₹ 3,469. The per year interest will be:

Year 1 – ₹ 614

Year 2 – ₹ 651

Year 3 – ₹ 691

Year 4 – ₹ 734

Year 5 – ₹ 779

So this is how the interest is calculated using the fixed deposit calculator. The same procedure is followed in the simple interest calculator. Just enter the values and know the yield.

 

Fixed Deposit ICICI – Let’s Your Money Grow At Optimum Interest Rate

To encourage the habit of savings amongst the people, the ICICI Bank offers various financial tools. The prominent among them is fixed deposit. The bank caters to the savings requirements of the people by giving high returns on the deposits made for the tenure ranging from 7 days to 10 years. The highest interest of 7.00% p.a. is offered to regular citizens and 7.50% p.a. to the senior citizens on the term deposits remaining with the bank for the period of 390 days to 2 years.

The customer can book the deposit with the minimum amount of ₹ 10,000 and select any time period. However, in the case of a minor candidate, the lowest investment amount is set to ₹ 2,000. The depositor can even choose from the plans of investment that are as follows:

Investment Plans:

Traditional Plan- Under this plan, the interest is receivable at the monthly and quarterly intervals.The account holder can select the interest payout frequency as per his need. The tenure for this plan lasts from 7 days to 10 years.

Reinvestment Plan– The candidates opting for this plan have to make an investment for the minimum period of 6 months. Unlike the traditional plan, the interest in this Fixed deposits scheme is not paid out but is compounded quarterly and reinvested with the principal amount. This compounded interest is rolled out at the time of maturity of the plan.

Fixed Deposit ICICI Interest Rate 2017:

Tenure

Rate of Interest ( % p.a.)

For Deposit Below ₹ 1 Crore For Deposits of ₹ 1 Crore to less than ₹ 25 Crores For Deposits of ₹ 25 Crores & Above
Regular Senior Citizen

7 days – 14 days

4.00

 

4.50 5.25 5.25

15 days to 29 days

4.25 4.75 5.25

5.25

30 days to 45 days

5.50 6.00 5.25

5.25

46 days to 60 days

5.75 6.25 5.50

5.50

61 days to 90 days

6.25 6.75 5.50

5.50

91 days to 184 days

6.25 6.75 5.75

5.75

185 days to 270 days

6.25 6.75 6.00

6.00

271 days  to 289 days

6.25 6.75 6.25

6.10

290  days to less than 1 year

6.50 7.00 6.25

6.10

1 year to 389 days

6.90 7.40 6.25

6.10

390 days to 2 years

7.00 7.50 6.25

6.10

2 years 1 day up to 5 years

6.75 7.25 6.25

6.25

5 years 1 day up to 10 years     6.50           7.00                                  6.25                        6.25

 

ICICI Bank Fixed Deposit Eligibility Criteria:

The fixed deposit facility can be availed by only the eligible candidates. As per the bank’s policy, all Indian residents are eligible to open a fixed deposit account in the bank.

How To Apply:

The eligible customers can apply for the fixed deposit through any of the following channels:

  • By visiting the nearest ICICI Bank Branch
  • By accessing ICICI Internet Banking
  • By calling on bank’s customer care number

Documents Required:

Following is the list of documents required by the bank at the time booking the deposit:

Identity Proof:

  • Passport
  • PAN card
  • Voter ID card
  • Driving licence
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

Address Proof:

  • Passport
  • Telephone bill
  • Electricity bill
  • Bank Statement with Cheque
  • Certificate/ ID card issued by Post office

Benefits of Fixed Deposit ICICI:

Flexible Range of Tenure– The deposits can be booked for the investment period ranging from 7 days to 10 years.

Partial Withdrawal Permitted– The customer can withdraw the amount partially in multiples of ₹ 1,000. The remaining deposit amount yields interest at the predetermined rate of interest.

Automatic Renewal Facility– At the expiration of deposit period the term deposit is automatically renewed so that the funds do not lie idle.

Nomination Facility– The account holder can nominate a single nominee irrespective of the type of account whether single or joint.

Loan Facility– The depositor can avail a loan against fixed deposit up to 90% of the deposit and accrued interest.

Convenient Application Process– The customer can apply for the fixed deposit either by visiting the bank branch or from home using internet banking service or customer care helpline.

Extra Interest To Senior Citizen– The senior citizens are entitled to receive an additional interest of 0.50% on deposits of less than ₹ 1 crore.

To Hike Your Savings Invest in Fixed Deposit HDFC

As savings is considered the best option to keep the future secured, it is important to know which type of savings can be useful and help you reach your financial goals. Though there are different types of savings plans but the best option for people who are looking forward to a safe mode of investment that can yield them regular and fixed returns are fixed deposits. The reason being, once you have deposited the decided amount in the account it will yield interest for the entire period of the deposit.

fixed deposit

There is no risk associated and returns are guaranteed. Moreover, it makes your idle money earn for you. Even you have the option to select the investment period and the Fixed deposit scheme. This advantage is available for the customers opening the fixed deposit account in HDFC. The bank caters the diverse savings requirement of the customers and has proposed different deposit schemes such as:

  • Regular Fixed Deposit
  • 5 Year Tax Saving Fixed Deposit

It also grants attractive returns on the term deposits. The rate of interest prevailing on different tenure is mentioned below:

HDFC Bank Interest Rates 2017:

Investment Period

Interest Rate ( per annum)

For amount less than ₹ 1 Crore For amount of ₹ 1 Crore & above but less than ₹ 5 Crores

Regular

Senior Citizen Regular

Senior Citizen

7 – 14 days

3.50% 4.00% 4.25% 4.75%

15 – 29 days

4.25% 4.75% 4.25%

4.75%

30 – 45 days

5.50% 6.00% 4.25%

4.75%

46 days – 6 months

5.75% 6.25% 4.50%

5.00%

6 months 1 day – 9 months 15 days

6.00% 6.50% 4.75%

5.25%

9 months 16 days – < 1 year

6.25% 6.75% 5.00%

5.50%

1 year

6.90% 7.40% 5.00%

5.50%

1 year 1 day – 1 year 3 days

6.95% 7.45% 5.00%

5.50%

1 year 4 days – 2 years

6.25% 6.75% 5.00%

5.50%

2 years 1 day – 10 years 6.00% 6.50% 5.00%

5.50%

 

Fixed Deposit Schemes:

The following are the schemes proferred by the bank:

Regular Fixed Deposit- The customer can avail the benefit of regular interest on the investment made with the minimum amount of ₹ 5,000. The customer can make the investment for the period ranging from 7 days to 10 years. The TDS is deducted if the interest amount exceeds the limit of ₹ 10,000 in a financial year. The candidates can even earn compound interest by reinvesting the interest earned during the period along with the original investment amount. The candidates opening the account can easily liquidate the deposit and appoint a nominee. The account holder can also avail the sweep-in & super saver facility on deposits held in a single name. The eligible candidates to avail this scheme are:

Eligible Segments:

  • Residents
  • Hindu Undivided Families
  • Sole Proprietorship Firms
  • Partnership Firms
  • Limited Companies
  • Trust Accounts

5 Year Tax Saving Fixed Deposit: Under this scheme, the potential depositor can open an account with the minimum amount of ₹ 100 and in multiples. The maximum investment amount is restricted to ₹ 1,50,000 per financial year. The deposit can not be liquidated before the lock-in period of 5- years which is the maximum tenure. The FD Interest rate is similar to the rate applicable on 5 year deposit. The returns are paid out at monthly and quarterly intervals. The depositor is given tax redemption under Section 80 C of Income Tax Act. However, in the case of joint account, the tax benefit is given only to the first holder. The following can open the 5-year tax saving fixed deposit account:

Eligible Segments:

  • Resident Individuals
  • Hindu Undivided Families

Documents Required: Certain documents are required at the time of booking a deposit. The list of requisite documents is given below:

ID Proof & Address Proof:

  • Passport
  • PAN Card
  • Driving Licence
  • Voter ID
  • Government ID Card
  • Senior Citizen ID Card
  • ID Card Issued by Post Office
  • Bank Statement with Cheque
  • Telephone Bill
  • Electricity Bill
  • Any other ID proof or address proof document can be submitted subject to bank’s satisfaction

Features of Fixed Deposit HDFC:

  • Convenience of booking the deposit online through net banking
  • 0.50% higher interest to the senior citizens
  • Flexible tenure ranging from 7 days to 10 years
  • Super saver facility that allows getting overdraft by linking the fixed deposit to saving/current account
  • Option to transfer funds from the fixed deposit in the saving/current account if the balance in the account is less

 

Earn Good Returns on SBI Fixed Deposits

State Bank of India is the leading public sector bank that has pioneered the Indian banking domain with its customer friendly financial services. All sort of financial needs are taken care of to ensure the customer satisfaction. The bank aims at benefiting the customers and provides good returns on the deposits. It promotes the habit of savings in people by providing fixed deposits at an attractive rate of interest.

The SBI FD interest rate 2016 ranges from 5.50% p.a. to 7.00% p.a. for general public. However, the bank provides an extra interest of 0.50% to the senior citizens. The SBI FD interest rates vary as per the tenure opted by the customer. The customer can make a deposit for the minimum time period of 7 days. However, the bank accepts the deposit for the maximum tenure of 10 years.

fixed deposit

SBI Fixed Deposit Scheme:

The bank has drafted multiple SBI Fixed Deposit Schemes to cater the variant needs of the people. The investor has the flexibility to decide and invest in the scheme that he considers is best for him. The fixed deposits schemes offered by the bank are:

  • SBI MODS
  • SBI Annuity Deposit
  • SBI Reinvestment Plan
  • SBI Tax Savings Scheme

SBI MODS: Multiple Option Deposit Scheme (MODS) is the deposit plan in which the FD account holder has the freedom to withdraw the amount in multiple of ₹ 1,000. The remaining amount in the deposit account yields interest at the same interest rate. The minimum amount required to open the account is ₹ 10,000. The tenure period of the deposit ranges from 1 year to 5 years. The account holder can avail loan against the deposit and can file nomination.

SBI Annuity Deposit: The account under annuity fixed deposit scheme is opened with the minimum amount of ₹ 25,000. There is no maximum limit on the deposit. The deposit can be made for the period 36, 60, 84 or 120 months. Under this scheme, the depositor can pay a lump sum amount and receive the same in the form of EMIs, which is the total of the principal amount and interest on the reducing principal amount.

SBI Reinvestment Plan:In reinvestment plan, the interest receivable is quarterly compounded and added to the principal amount. Then the interest is calculated on the new principal and is paid at the time of maturity. This deposit can be opened with the minimum amount of ₹ 1,000 for the tenure ranging from 6 months to 10 years. The depositor can close the deposit before the expiration date but in such case, the interest will be paid at penal rates. The depositor can take a loan against FD up to 90% of the deposit amount.

SBI Tax Savings Scheme: The customer can avail the benefit of saving taxes on the fixed deposits by investing the minimum amount of ₹ 1,000 for the minimum period of 5 years. The maximum investment amount is limited to 1,50,000. The investor can not withdraw the money before the lock-in period of 5 years and the facility of loan against tax saver deposit is not available.

The investor can compare the gains on various schemes and select the tenure and investment amount by using the SBI Fixed Deposit Calculator. The calculator helps in knowing the maturity value. It calculates the total yield on the deposit remaining with the bank. So, the customer can choose SBI Fixed Deposits for the tenure that will help him accomplish his financial goals.

 

HDFC Mutual Funds-Your Money Multiplier

With a quarterly average asset under management (QAAUM) of ₹ 2,12,169.97 crores till Sep 30, 2016, HDFC Mutual Fund is a good choice for investors looking to boost return and ensure a regular flow of income on their investments. The foundation of HDFC Mutual Fund dates to as old as 17 years when HDFC Asset Management Company (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999. Later, HDFC AMC was appointed to manage Mutual Fund.

With HDFC Mutual Fund schemes spanning from equity, debt and liquid funds to children’s gift fund, retirement savings fund and fixed maturity plan, the fund house has tailored its product range to meet the varied needs of retail, corporate and institutional investors with different investment aptitude and risk profile. Want to know the schemes in detail? Find out the same below.

HDFC Mutual Fund

Equity Funds: HDFC equity mutual funds are ideally suited for investors with an eye on capital appreciation over the long-term. With investment baskets mainly consisting of equity instruments, the fund looks to churn out substantial returns for the investors to raise their wealth over time.

Types of Equity Funds:  HDFC Mutual Fund offers a myriad of equity funds of your taste and risk profile. These funds include-

  • HDFC Equity Fund
  • HDFC Top 200 Fund
  • HDFC Mid-Cap Opportunities Fund
  • HDFC Prudence Fund
  • HDFC Tax Saver Fund (ELSS)
  • HDFC Infrastructure Fund
  • HDFC Capital Builder Fund
  • HDFC Small Cap Fund
  • HDFC Core and Satellite Fund
  • And Much More

Debt Funds: If you want to assure a regular flow of income to feed upon, HDFC debt funds are the ones you should go with. These funds invest a majority of the corpus in debt and money market instruments. You can choose from a list of schemes stated below to kick off debt Mutual Fund journey with HDFC Mutual Fund.

Types of Debt Funds: You can pick from a flurry of debt funds offered by the fund house. The funds comprise of-

  • HDFC Gilt Fund-Long Term
  • HDFC Medium Term Opportunities Fund
  • HDFC Short Term Opportunities Fund
  • HDFC Corporate Debt Opportunities Fund
  • HDFC Short Term Plan
  • HDFC MF Monthly Income Plan-Long Term Plan
  • HDFC MF Monthly Income Plan-Short Term Plan
  • HDFC High Interest Fund-Dynamic Plan
  • HDFC Banking and PSU Debt Fund
  • HDFC High Interest Fund- Short Term Plan
  • HDFC Income Fund
  • HDFC Gilt Fund-Short Term Plan
  • And Much More

Liquid Funds: The liquid funds ensure optimal returns, high liquidity and safety of the investments by investing mainly in debt and money market instruments. At HDFC Mutual Fund, you can choose from a variety of liquid funds to bolster your investment portfolio.

Types of Liquid Funds: There are four liquid funds offered by the fund house. They are as follows-

  • HDFC Cash Management Fund- Savings Plan
  • HDFC Cash Management Fund- Call Plan
  • HDFC Liquid Fund Premium Plan
  • HDFC Liquid Fund

Children’s Gift Fund: HDFC Mutual Fund provides Children’s Gift Fund in the form of both savings & investment plan. It is suitable for the investors with an eye on the long-term capital appreciation.

HDFC Retirement Savings Fund: The fund generates retirement corpus in the form of pension to an investor to feed after he/she retires from the professional arena.  

Fixed maturity Plan: The AMC is a home to an extensive line of fixed maturity plans (FMPs) for the mutual fund investors. The FMPs generate income by investing in debt or money market instruments as well as government securities that are about to mature.

Types of FMCs: You are here to choose from a wide range of FMCs pointed below.

  • HDFC FMP 1240D December 2016 (1)
  • HDFC FMP 1112D June 2016 (1)
  • HDFC FMP 1309D September 2016 (1)
  • HDFC FMP 1161D July 2016 (1)
  • And Much More

HDFC Mutual Fund Online Login: HDFC MF Online, launched by HDFC Mutual Fund, is a facility available to facilitate a round-the-clock transaction of mutual funds online. With this, you can purchase, sell & switch mutual funds, in addition to registering for SIPs, STPs, FLEXSTP/FLEXINDEX, viewing account details and downloading account statement. You should have an existing folio, an email ID and HDFC Personal Identification Number (HPIN) to avail the same.
HDFC Mutual Fund Account Statement: As said earlier, you can access account statement online by using HPIN, email ID and existing folio. The statement will show the details of the transactions both subscription and redemption of fund units.

Know What You Yield By Using Fixed Deposits Calculator

Investment in fixed deposits by far is considered the best way of savings as there is surety of getting back the invested amount. Also, there is assurance of receiving the stated interest. The returns on fixed deposits are predetermined. These returns are credited in the depositor’s account either at the time of maturity of the deposit or are paid off at the frequency decided by the depositor. The depositor can calculate the interest on the fixed deposit using the fixed deposits calculator.

fixed deposit

FD Calculator is an online device designed to compute the maturity value of the deposit. It helps in calculating the interest receivable on the fixed deposit made for a certain period of time. It saves time and provides the realistic result. The user can find the future value of a fixed deposit by entering the FD interest rates, deposit amount and the period of investment in the fixed deposit calculator. The value displayed is calculated using the interest calculator formula which is:

A = P (1 + r/n) nt

I  = A – P

The paid on FD interest rates is calculated using two methods. The simple interest method and the compound interest method.

Simple Interest Method – In this method, the interest is calculated on the initially deposited amount for the entire deposit period. The interest receivable remains same throughout the tenure of the period. The returns on such deposits are lower.

Compound Interest Method – Deposits yielding interest at compound interest give higher returns. As the amount of interest earned in the previous period is added to the initial principal and the new amount is taken into consideration for calculating the interest of next period. That is the principal amount keeps on changing during the tenure.

Comparison between interest calculated on fixed deposits using simple interest formula and compound interest formula:

To compare the earnings on fixed deposit yielded on simple interest and compound interest let’s take an example:

Example – A person makes a deposit of ₹ 20,000 for the period of 10 years. The interest on deposit is paid at the FD interest rate of 7.00% per annum. The interest earned on deposit at simple interest and compound interest is given below:

Simple Interest Method:

Deposit Amount -₹ 20,000

Tenure – 10 years

Interest Rate – 7.00% p.a.

Interest Amount – ₹ 14,000

Maturity Amount – ₹ 34,000

The simple interest is calculated using the below mentioned formula:

A = P (1 + rt)

Where:

A = Maturity Value

P = Principal Amount

I = Interest Amount

r = Rate of Interest per year in decimal

t = Time Period involved in months or years

Compound Interest Method:

Deposit Amount – ₹ 20,000

Tenure – 10 years

Interest Rate – 7.00% p.a.

Interest Amount – ₹ 20,031

Maturity Amount – ₹ 40,031

The compound interest is calculated using the formula:

A = P (1 + r/n) nt

Where,

A = the maturity value
P = the initial deposit amount
r =  the annual interest rate
n = the number of times that interest is compounded per year
t = the number of years

The above example shows that the compounded interest is higher than the simple interest. The bank decides the method of calculating interest on fixed deposits. The user can check the amount of interest receivable using the specific fixed deposits calculator.