How can I calculate the FD interest on a deposit of ₹15 Lakh?

The process of calculating the FD interest for ₹15 Lakh is very simple if you know the basics:

• Understand what affects your earnings: Your ₹15,00,000 deposit serves as the initial amount. The interest rate, such as 7% per year, determines how much you will earn on your deposit. The duration for which you keep the money, such as 3 years, also plays a crucial role in the overall interest earned.
• Simple interest calculation: Interest = (Deposit × Rate × Years) ÷ 100. For ₹15 lakh at 7% for 3 years: (15,00,000 × 7 × 3) ÷ 100 = ₹3,15,000. Your total interest after 3 years is ₹15,00,000 + ₹3,15,000 = ₹18,15,000.
• Compound interest calculation: Total Interest = Deposit × (1 + Rate ÷ Compounding)^(Compounding × Years). For 7% interest, compounded quarterly (or added four times a year), over 3 years: Total = 15,00,000 × (1 + 0.07 ÷ 4)^(4 × 3) ≈ ₹18,43,290. Interest earned = ₹18,43,290 - ₹15,00,000 = ₹3,43,290.
• Tips to make it easy: Check if the FD uses simple or compound interest. Ask how often interest is added (annually or quarterly). Use a reliable FD calculator to compare options across banks. Always procure a custom quote from the bank or financial institution before investing