Fixed Deposit Monthly Interest Calculator
Works out the monthly interest on a fixed deposit, the total interest after tax for the whole term, and the maturity amount you receive.
Recent
Formula
How the calculation works
The monthly interest is simply the annual rate divided by twelve, so it is a flat figure and does not compound within the year.
Tax is usually deducted at source on the interest, so the total after tax is what actually reaches your account over the term.
The maturity amount adds only the after-tax interest to the deposit, which keeps the estimate close to the bank's own statement.
Common mistakes
- Assuming the monthly interest compounds inside the year overstates the total, because a flat monthly payout does not earn interest on interest.
- Forgetting that tax is deducted on the interest makes the maturity amount look larger than what the bank actually credits.
When to use it
- Use it to compare fixed deposit offers, since a slightly higher rate can beat a longer term once tax on interest is taken into account.
- Use it when you need regular monthly income from savings, because a monthly-payout deposit shows exactly how much cash arrives each month.
Worked example
A deposit of 350,000 BDT at 8.25 percent for 12 months gives 2,406.25 BDT monthly interest. With 10 percent tax on interest the total after tax is 25,987.5 BDT and the maturity amount is 375,987.5 BDT.
Common questions
Is the monthly interest paid out or added to the deposit?
It depends on the deposit type: a monthly-income scheme pays it out each month, while a reinvestment scheme compounds it into the maturity amount.
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