Interest Calculator On FD PNB

PNB Fixed Deposit Formula:

\[ A = P \times (1 + R / n)^{(n \times T)} \]

Principal Amount (P):

INR

Annual Interest Rate (R):

Time Period (T):

years

Compounding Frequency (n):

Maturity Amount (A):

Interest Earned:

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1. What is the PNB Fixed Deposit Calculator?

The PNB Fixed Deposit Calculator helps you estimate the maturity amount of your fixed deposit investment with Punjab National Bank using the compound interest formula. It calculates both the total maturity amount and the interest earned over the investment period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + R / n)^{(n \times T)} \]

Where:

\( A \) — Maturity amount (INR)
\( P \) — Principal investment amount (INR)
\( R \) — Annual interest rate (as decimal)
\( n \) — Compounding frequency per year
\( T \) — Time period in years

Explanation: The formula calculates how your investment grows with compound interest, where interest is added to the principal at regular intervals, generating more interest in subsequent periods.

3. Importance of FD Calculation

Details: Accurate FD calculation helps in financial planning, comparing investment options, and understanding how compounding can significantly increase your returns over time.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate as percentage, time period in years, and select compounding frequency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum investment for PNB FD?
A: The minimum investment amount for PNB fixed deposits is typically ₹1,000, but it's best to check with the bank for current requirements.

Q2: Are PNB FD returns taxable?
A: Yes, interest earned on fixed deposits is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Q3: What are the tenure options for PNB FDs?
A: PNB offers fixed deposits with tenures ranging from 7 days to 10 years, with varying interest rates for different periods.

Q4: Can I withdraw my FD prematurely?
A: Yes, but premature withdrawal may attract a penalty and the interest rate may be revised to the rate applicable for the period the deposit was held.

Q5: How often is interest compounded in PNB FDs?
A: PNB offers various compounding options including monthly, quarterly, half-yearly, and annual compounding, depending on the FD scheme.