Seeking an investment avenue to grow a corpus for your future financial needs? A fixed deposit investment might be effective for you as banks and NBFCs provide a competitive interest rate without any market risk factors.  

For instance, Abhyudaya Bank lets you invest for as little as 7 days and up to 10 years, with the highest interest rate, up to 6.90%, offered on deposits kept for 2 to 3 years.

However, before investing in one, you must use an online Abhyudaya FD calculator to estimate your return upon maturity. 

What is Abhyudaya FD Calculator?

The Abhyudaya FD Calculator is an online tool that helps you estimate the maturity value of your fixed deposit with ease. Just enter your deposit amount, select your preferred tenure and apply the corresponding interest rate offered by Abhyudaya Bank. It gives you a clear picture of your potential returns, helping you plan your investments with confidence and make well-informed decisions.

Benefits of Abhyudaya FD Calculator

Abhyudaya Bank FD interest rates calculator brings you multiple benefits that make your investment-related decision easier and quicker:

Saves your Time

With the Abhyudaya FD Calculator, you can save on both your time and effort. It is because this tool eliminates the need for a manual and complex calculation of interest. Also, by using it, you can compare your accumulated interest and return upon maturity almost instantly from Abhyudaya Bank and compare it with other FD providers and make your decision.

Helps with Financial Planning

Suppose you are creating an FD at Abhyudaya Bank to build a retirement corpus. At a 5.90% interest for 10 years, you plan to invest ₹3,00,000. However, keeping the price hikes in mind, you might think that it might not be enough. As you get an instant estimate of return, you can increase your investment to get a maturity amount enough for meeting future needs. 

Easy to Use

The Abhyudaya Bank FD calculator helps make your investment decision faster, as it is easy to use. All you need to do is input your investment amount, choose if you are a senior citizen, your interest amount and horizon. The calculator will list the maturity amount and accumulated interest instantly. 

How to Use Abhyudaya Bank Fixed Deposit Calculator?

As mentioned earlier, using the FD calculator of Abhyudaya Bank is very easy. For your convenience, here is a step-by-step guide on how to do it:

Step 1: Under the ‘Amount’ section on the Abhyudaya FD calculator page, input the amount you want to invest.

Step 2: From the dropdown labelled as ‘Sr. Citizen’, choose 'Yes' or 'No' depending on your age. 

Step 3: Click the option ‘Interest Rate and Tenure’ and you will see the investment tenure and its respective interest rate. Choose your preferred one.

When you are done with the above steps, you will see how much interest you are getting in total upon maturity. Along with that, you will see your maturity amount. 

How Does Abhyudaya FD Calculator Work?

Now that you are familiar with the steps of calculating your FD return upon maturity, it is easy to understand its working process. This calculator considers the inputs you provided, such as the investment amount, tenure and interest rate. It will run such information through a simple underlying formula to produce your ultimate return on investment.

Formula to Determine Abhyudaya FD Returns

When calculating FD interest, you will mainly come across 2 methods: simple interest and compound interest. Here’s a quick breakdown of how each works:

Simple Interest Rate Calculation

If you see a payout based on the simple interest method, a formula, i.e. (P * R * T)/100 comes into effect.

Here, the ‘P’ stands for the principal amount that you invested when you create an FD. The ‘R’ represents the prevailing interest rate per annum and ‘T’ defines the tenure you choose while investing. 

For example, you invested ₹1,00,000 at a 6.15% interest rate PA for 1 year. If the simple interest is applied, you will get ₹6,150 as your accumulated interest. The total amount on maturity becomes ₹1,06,150.

Compounding Interest Calculation

Most banks use this method to maximise your return on investment upon maturity. A bit complex formula applies here, which is A = P(1 + r/n)^n*t.

Here, ‘A’ is for the total maturity amount you will receive once the tenure is over. Similarly, ‘P’ represents the principal amount, ‘R’ is for the interest rate and ‘N’ represents compounding frequency in an FD scheme. ‘T’ represents the investment horizon. 

Suppose you invest ₹1,00,000 at 6.55% interest PA for 2 years at a quarterly compounding frequency. Upon maturity, your investment will generate ₹13,530 worth of total interest. 

Your maturity value will become ₹1,13,530. 

However, Abhyudaya Bank does not explicitly mention the compounding frequency and therefore, you must consult the bank before investing.

With Stable Money, you can earn up to 8.15% on your FD investments and calculate your return using the in-app FD calculator. Download the app today!