Indian Banks accept amounts for varying periods at varying rates of interest on a cumulative basis, the principal and accrued interest thereon being repaid on maturity date.
The maturity amount is calculated for completed quarters on the basis of compounding formula with quarterly rests and on such amount simple interest is calculated for the balance no. of days using ptr/100.
An example is appended. I cross checked with a few deposits I have and this seems to be the case.
Tax Deducted at Source (TDS) complicates the issue. During the currency of the deposit at the end of every financial year as on 31st Mar, from out of the interest earned from 1/4/YY to 31/3/(YY+!) tax is deducted at 10% and available principal for the following year is reduced to that extent. TDS is also affected on the date of the maturity. In the example I have given TDS has to be deducted 31/3/25 and on 21/3/26.
How do we get such breakup?
Essentially the calculator should have as many columns as the no. of financial years and i feel that the calculator should reflect the same maturity amount as earlier if we take TDS rate as 0%. with TDS the maturity amount would be lower as the amount used up for TDS in earlier FYs is not available for earning interest. Pl help
The maturity amount is calculated for completed quarters on the basis of compounding formula with quarterly rests and on such amount simple interest is calculated for the balance no. of days using ptr/100.
An example is appended. I cross checked with a few deposits I have and this seems to be the case.
Tax Deducted at Source (TDS) complicates the issue. During the currency of the deposit at the end of every financial year as on 31st Mar, from out of the interest earned from 1/4/YY to 31/3/(YY+!) tax is deducted at 10% and available principal for the following year is reduced to that extent. TDS is also affected on the date of the maturity. In the example I have given TDS has to be deducted 31/3/25 and on 21/3/26.
How do we get such breakup?
Essentially the calculator should have as many columns as the no. of financial years and i feel that the calculator should reflect the same maturity amount as earlier if we take TDS rate as 0%. with TDS the maturity amount would be lower as the amount used up for TDS in earlier FYs is not available for earning interest. Pl help
| STDRMATCAL.xlsx | ||||
|---|---|---|---|---|
| A | B | |||
| 1 | STDR MAT CAL | |||
| 2 | ||||
| 3 | Start date | 03-09-2024 | ||
| 4 | Mat Date | 21-03-2026 | ||
| 5 | Principal | 1000000 | ||
| 6 | ROI | 10.00% | ||
| 7 | No. of months | 18 | ||
| 8 | No. of qrs | 6 | ||
| 9 | Quarter End Date | 03-03-2026 | ||
| 10 | Bal no. of days | 18 | ||
| 11 | Maturity Amount | 1165412.45 | ||
| 12 | 1165412 | |||
Sheet1 | ||||
