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Interest Calculation Formula:
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The simple interest calculation formula for fixed deposits calculates the interest earned by subtracting the principal amount from the maturity amount. This provides a straightforward way to determine the interest income from your investment.
The calculator uses the simple formula:
Where:
Explanation: This formula calculates the difference between the amount received at maturity and the original investment, which represents the interest earned on the fixed deposit.
Details: Accurate interest calculation is crucial for financial planning, investment analysis, and understanding the returns on your fixed deposit investments with Punjab National Bank.
Tips: Enter the maturity amount and principal amount in currency units. Both values must be positive numbers with the principal being less than or equal to the maturity amount.
Q1: What is a fixed deposit?
A: A fixed deposit is a financial instrument where you invest a lump sum amount for a fixed period at a predetermined interest rate.
Q2: How is PNB FD interest calculated?
A: PNB calculates FD interest based on the deposit amount, tenure, and applicable interest rates. The maturity amount includes principal plus accrued interest.
Q3: Are there different types of PNB FDs?
A: Yes, PNB offers various FD schemes including regular FDs, tax-saving FDs, and senior citizen FDs with different interest rates and terms.
Q4: What is the minimum investment for PNB FD?
A: The minimum investment amount for PNB fixed deposits typically starts from ₹1000, but may vary based on the specific FD scheme.
Q5: Is premature withdrawal allowed?
A: Yes, PNB allows premature withdrawal of FDs, but it may attract a penalty and the interest rate may be revised as per bank policies.