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What Is the PNB FD Calculator?
Thanks to the fixed nature of FD returns, you can estimate the earnings even before investing in one. You can do it manually or use an online FD calculator to get quick results. The PNB FD calculator can come in handy when you need to quickly estimate the interest and total amount you will receive at maturity.
You can use the FD calculator to compare several fixed deposit options and choose the one with higher returns. This helps you plan your investments in line with your financial goals and requirements.
How Does an PNB FD Calculator Work?
The Punjab National Bank (PNB) FD calculator calculates FD returns based on the popular concept of compound interest using the FD formula.
What is the PNB FD Calculator Formula?
The FD formula calculates the interest and total amount earned on a fixed deposit at the time of maturity. It considers the principal, interest rate, and tenure of the deposit. Here is the formula the PNB FD calculator formula:
Maturity Amount= p (1+r/n) ^ nt
p = Principal amount
r = Rate of Interest
n = Frequency of compounding
t = duration (or tenure)
How to Use the PNB FD Calculator Online?
Let’s suppose you want to invest Rs. 10,00,000 in a fixed deposit with PNB for 5 years. The interest rate is 7.5% p.a. Considering these variables, you can estimate your interest and maturity proceeds using the Punjab National Bank FD calculator.
Step 1: Visit the PNB FD Calculator on Angel One.
Step 2: Enter the principal in the "Total Investment" field. In our example, it is Rs. 10,00,000.
Step 3: Choose the duration of the FD as 5 years.
Step 4: Now, select the interest rate, which is 7.50% in this instance.
Step 5: View your interest and total earnings on maturity. While the estimated interest is Rs. 4,49,948, the total maturity amount will be Rs. 14,49,948.
This way, the PNB FD calculator on Angel One helps investors make better decisions about fixed deposits based on accurate information.
Benefits of Using an PNB FD Calculator
- It helps estimate your earnings in advance: With the online PNB FD calculator, you can ascertain your earnings on an FD even before investing in one. Thanks to this, conservative investors can rest assured about how much returns they will receive on maturity.
- It gives quick, accurate calculations: The PNB FD calculator gives precise calculations of the interest and maturity proceeds of a fixed deposit based on the variables, that too in a second. This helps you understand how much you need to invest in an FD to achieve your goals.
- It is convenient and free to use: You can use the online PNB FD calculator at any time from anywhere. What’s more, it is a free tool, so you don't have to pay anything to use it.
- It helps compare various FD options: The PNB FD allows you to compare FDs of varying interest rates, tenures, and principal. This enables you to choose the best option to meet your goals.
- It helps senior citizens manage their retirement corpus better: Since the primary objective of senior citizens is capital preservation over growth, the PNB FD calculator plays a vital role in planning their investments. Senior citizens can use the calculator to manage their investments over varying tenures to enjoy a regular income stream.
Types of PNB Bank FD Schemes
Following are some FD schemes offered by the Punjab National Bank:
- FD Scheme For Road Accident Victims: The scheme allows the claimants of road accident victims to park funds received from the Motor Tribunal as per court orders under the maximum interest category of FD.
- PNB Tax Shield Fixed Deposit Scheme:This is a tax-saving fixed deposit that offers a tax deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. You can invest a minimum of Rs. 100 and a maximum of Rs. 1.5 lakh per financial year.
- PNB Pranam Fixed Deposit: This can be opened by individuals aged between 55 and 60 years. A minimum of Rs.100 and a maximum of Rs.1.99 lakh can be invested.
Factors Influencing FD Earnings
- Principal: In many cases, the interest on a fixed deposit is directly proportional to the principal. The higher the principal, the higher the interest. For instance, you will earn a higher interest on investing Rs. 1 lakh compared to investing Rs. 50,000. Suppose the interest rate is 7% p.a. and the tenure is 5 yrs. Then your interest earnings will be Rs. 41,478 in the first case and Rs. 20,739 in the second.
- Interest rate: The higher the interest rate, the higher the earnings. For instance, if the principal is Rs. 1 lakh and the tenure is 3 years, you will earn Rs. 16,075 interest if the rate is 5% and Rs. 23,144 at the rate of 7%.
- Tenure: Generally, the longer the tenure of the fixed deposit, the higher the interest rate, which translates into higher earnings. Moreover, having a longer tenure means keeping the principal invested for additional time periods, which will increase the number of interest payments made.
- Compounding frequency: The higher the compounding frequency, the higher the compounding effect and hence, the higher the earnings.
- Taxation: FD interest attracts tax. Therefore, a higher tax liability reduces your earnings.
- Inflation: If the inflation rate exceeds the FD interest rate, the real value of your earnings will be eroded.