How to calculate Interest on Fixed deposit

This query is : Resolved

Abhishek Kumar Srivastava (Querist)
Follow

13 October 2008 Hi,
I created one FD with SBM @10.5% for 300 days. Start date is 6th Oct 2008, Maturity date is 2nd Aug 2009 and Principal is Rs. 40,000/-. They have given FD certificate to me with final amount as Rs. 43,569/-. When I do my calculation I get maturity amount as Rs. 43,579/-.

I am using periods from (1) 6/10/2008-31/12/2008, (2) 1/1/2009-31/3/2009, (3) 1/4/2009-30/6/2009 and (4) 1/7/2009-2/8/2009.

Can anyone help me understand if I am doing something wrong here?
If there is any FD calculator already available then please point me to that.

Thanks,
Abhishek

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

13 October 2008 It depends upon:
1. At what intervals they credit interest
2. What is the number of days they take for a year, 365 or 360.

Abhishek Kumar Srivastava

Abhishek Kumar Srivastava (Querist)
Follow

13 October 2008 OK. But there must be some standards that banks must be following? Or am I wrong and banks can choose whatever they want?

Can you explain calculation with 365 days a year?

Upgrade to CAclubindia Pro. Subscribe Now!

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

14 October 2008 There are no standards, except that they go by conventions which can vary slightly from bank to bank. You have to go through the terms and conditions.