01 December 2010

† How To Calculate Bank Fixed Deposit †

High risk high return, low risk low return. I find keeping your money in a bank's fixed deposit (FD) is one of the safest way of earning money but the return is extremely low.

How to calculate fixed deposit rate? Lets say I have $10,000 and I keep it in the FD for 12 months at the rate of 3%, i will have $10,300 upon FD maturity.


Some banks show figures such as 1 month FD rate = 2.85%, 5 months FD rate = 2.95%, whats that about? 

Lets take the example of 1 month FD rate of 2.85%. If you were to put $10,000 in a 1 month FD at the rate of 2.85%, here's the formula: ($10,000*2.85%)/12 and the amount that you get after 1 month is $23.75. Pretty little amount, but better than none.

1 comment:

  1. but for the rich.. they can put in millions and earn back alot!

    ReplyDelete