One of the most important factors you must consider while choosing a fixed deposit is the interest rate offered by the issuer. It determines how much returns you will make on a particular FD investment.

 

There are two formulas that you can use to calculate total interest receivable on FD: simple and compound interest. Read on to know how to calculate ₹2 interest for ₹30,000 per month or year when you invest in a fixed deposit.

Formula with an Illustration

Like the ‘₹1 interest’ method, you can find out the total interest receivable on FD using the ‘₹2 interest for ₹30,000 per month’ method. Here is a table showcasing how to calculate ₹2 interest for a ₹30,000 FD per month using different methods:

Calculation Method

Formula

Illustration

‘₹2 Interest for ₹30,000 Per Month’ Method

With ₹2 interest on ₹100, the annual interest rate would be 2 X 12 = 24%

Assume that you invest ₹30,000 for monthly payouts at a 2% interest rate. This means your annual interest rate would be 24%.


Given this, the monthly interest amount would be: 30,000 X 2/100 = ₹600.

Simple Interest Method

The formula for simple interest is as follows:

I = p × r × t

 

Here,

  • I = Interest

  • P = Principal Amount 

  • r = Interest Rate

  • t = Time Period of Investment

If you invest ₹30,000 for one year, the interest earned at the end of the tenor would be - 30,000 X 24/100 X 1 = ₹7,200.

 

Monthly interest: 7,200/12 = ₹600 

Compound Interest Method

The formula for compound interest is as follows: 

I = [P (1 + r/n)^n X t] – P

 

Here,

  • I = Value of Interest 

  • r= Interest Rate (in decimal format)

  • n = Number of Periods the Interest Compounds

  • t = Tenor

If you invest ₹30,000 for one year with annual compounding, the interest amount would be: 

[30,000 X (1+0.24/1)^1*1] - 30,000 = ₹7,200


Monthly interest: 7200/12 = ₹600

₹2 Interest for ₹30,000 Per Month

The interest receivable for any amount you invest in an FD depends on whether the issuer uses the simple interest or compound interest formula. Generally, if you invest ₹30,000 in an FD, where the interest is compounded annually, your returns would be higher. 

 

This is because the interest gets added to the principal to calculate the next interest amount. However, remember that there is a risk of error in manual calculations. But you can avoid this when you use the FD calculator available on Bajaj Markets.

 

The FD calculator is an online tool that you can use to instantly and accurately estimate the interest receivable. Moreover, you can compare different schemes using the calculator and choose the best one. 

 

You can also just as easily invest in an FD on Bajaj Markets by choosing from a plethora of FD options. With an entirely digital process and minimal paperwork, you can invest from the comfort of your home.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs on How to Calculate ₹2 Interest for ₹30,000 Per Month

How to calculate simple interest on an FD offering ₹2 interest for ₹30,000 per month?

You can calculate simple interest on an FD offering ₹2 interest for ₹30,000 per month using this formula: I = P X R X T

What are the variables I need to enter to calculate interest using an FD interest calculator?

To calculate the total interest amount using an FD interest calculator, you need to enter just a few variables. These include the initial invested amount, investment horizon, interest rate offered, FD payout, and, in some cases, your age.

How much compound interest will I earn on an FD offering ₹2 interest for ₹30,000 per month compounding annually with a tenor of 3 years?

Based on these terms, you can earn interest of around ₹27,199 at the end of the tenor. Remember that this calculation is from an FD calculator, and the actual earnings may vary.

What is the compound interest formula to compute interest for an FD offering ₹2 interest for ₹30,000?

The compound interest formula to determine interest receivable on an FD is [P (1 + r/n)^n X t] – P.

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