When looking to grow your investment through a fixed deposit, one of the most important factors that you must consider is the interest rate. The interest rate offered by the FD issuer is generally predetermined and remains constant during the entire tenor. 

 

You can optimise your earnings by comparing the interest receivable on different fixed deposit schemes. There are two formulae that allow you to determine the interest amount for an FD investment: equation, simple interest, and compound interest. 


Moreover, you can use the ‘₹3 interest for ₹30,000 per month’ concept to estimate the total interest amount on a fixed deposit.

Formula with an Illustration

The ₹3 interest for ₹30,000 per month invested in an FD works in the same way as the ‘₹1 interest’ method. The following table presents different formulae, along with illustrations, on how to calculate your FD interest:

Calculation Method

Formula

Illustration

‘₹3 interest for ₹30,000 per month’ Method

If you receive ₹3 interest per ₹100, the yearly interest rate would be 3 X 12 = 36%

If you have invested ₹30,000 for monthly payouts at a 3% interest rate, the annual interest rate of the FD would be 36%.


Monthly interest = 30,000 X 3/100 = ₹900

Simple Interest Method

I = P X R X T

 

Here,

  • I = Interest amount 

  • P = Principal amount 

  • R = Interest rate

  • T = Tenor 

If you invest ₹30,000 in the FD for a year, the interest earned at the end of the maturity period would be

30,000 X 36/100 X 1 = ₹10,800

 

Interest amount as monthly payout = 10,800/12 = ₹900

Compound Interest Method

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 gets compounded

  • t = Tenor

Investing ₹30,000 for a year in an FD, compounded annually, the interest amount would be [30,000 X (1+36/100/1)^1*2] - 30,000 = ₹10,800

 

Monthly interest = 10,800/12 = ₹900

₹3 Interest for ₹30,000 Per Month

The ₹3 interest for ₹30,000 per month you can earn when invested in an FD depends on the formula used for calculation. The interest remains the same under both the methods in the above illustration. 

 

However, the compound interest would be higher than simple interest if you park the funds in the FD for more than a year or if it compounds more than once annually. In conclusion, while you can use these formulae to estimate the interest receivable, you may find the entire process to be complicated. 

 

Moreover, a manual error in calculation can also result in inaccuracies. Hence, it is advisable to use the  Bajaj Markets FD interest rate calculator to find how much you can earn in the form of an interest component. It is an online tool that lets you estimate your FD returns quickly and without any hassle.

 

You can also easily invest in an FD from top issuers on Bajaj Markets. With a 100% online investment process, you can book your FD anytime and from anywhere.

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 ₹3 Interest for ₹30,000 Per Month

What is the formula to calculate simple interest for ₹3 interest for ₹30,000 investment in FD?

The formula to determine simple interest for ₹3 interest for ₹30,000 per month in FD is P X R X T. 

What are the factors that influence earnings on a fixed deposit?

The initial investment amount, the interest rate offered by the issuer, and the length of the tenor influence your FD earnings.

Which formula to use for computing compound interest for ₹3 interest for ₹30,000 investment in FD?

To calculate compound interest for ₹3 interest for ₹30,000 per month on FD, you must use this formula: I = [P (1 + r/n)^n X t] – P.

What would be the simple interest for an FD offering ₹3 interest for ₹30,000 investment for 3 years?

The simple interest receivable for such an FD would be ₹32,400. 

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