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  #1  
Old 6th February 2018, 11:11 PM
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Exclamation How to Calculate FD Monthly Payout?



Hello friends!

I am trying to understand how to calculate the monthly payout amount of fixed deposit scheme, like what is the formula to calculate myself.

I read that is should be basic compound interest formula but when I check on the website of ICICI FD calculator with monthly payout I am getting different value result.
Here is the site: https://www.icicibank.com/calculator...alculator.html
if I enter 1,00,000.00 in there and choose period as 1 year the interest total shows 6,564 but when I try with the CI formula (P x (1+r/n)^nt) for 1 year I get value 6,803, so I am confused

Can anyone explain what is wrong?

Thanks!
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Old 7th February 2018, 10:37 AM
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Quote:
Originally Posted by Kruvi Valya View Post
Here is the site: https://www.icicibank.com/calculator...alculator.html
if I enter 1,00,000.00 in there and choose period as 1 year the interest total shows 6,564 but when I try with the CI formula (P x (1+r/n)^nt) for 1 year I get value 6,803, so I am confused
You can't use compound interest formula as you will be getting monthly interest.

The interest will not be re-invested and hence can't compound.

6564 is total simple interest for 363 days.

The date of deposit and date of repayment are not included.

363/365 X 6.6% = 6.5638%.
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Old 7th February 2018, 01:08 PM
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Thanks for clearing!

Is the dates of deposit and repayment always not included for fixed deposits?
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