# android app

## Investment Calculators: How to Calculate the Maturity Value and the Returns or Yield on a 5-Year Tax Saving Fixed Deposit?

by on April 4, 2012

in Finance

Following-up on my previous post where I illustrated through a real-world example the way to calculate the maturity value and effective yield on a five-year tax saving fixed deposit (FD), I hacked-up a simple Android-application that helps you do the same in an instant wherever you are.

Click here to download the 5-Year Tax Saving FD Calculator Android-application. If you’re adventurous enough, it’s an unsigned .apk file that you can quickly install and run on your Android-phone (I’m still figuring out other mobile platforms). Let me know if you run into any trouble — it should run fine on most Android environments.

Here’s a quick screenshot of the application –

Here’s a quick usage manual –

• Enter the Amount that you wish to invest in the Tax Saving FD of your choice.

• Click on the Calculate button. The Maturity Amount (of maximum interest to you) is auto-computed and shown.

• Choose the Income-Tax bracket that you come under.

• The Effective Annual Yield is auto-computed and shown.

Couple of real-world examples –

Here are two recent advertisements for 5-Year Tax Saving Fixed Deposits. In both cases, I believe that the Effective APY of 17.77% shown in the ad for a Rate of Interest equal to 9.25% is wrong. (unless I am missing something?) The results however do tally for a Rate of Interest equal to 9.75%.

Let me know if you found this application useful.

## How Have My Fixed Maturity Plans (FMPs) Fared In the Past One Year Compared To My Fixed Deposits (FDs)?

by on February 21, 2012

in Finance

In the past one year, my Fixed Maturity Plans (FMPs) have fared only slightly better than my Bank Fixed Deposits (FDs) of comparable tenure.

• A 1-year FMP from IDFC achieved an APR of 10.05% (equal to an APY of 10.44% with quarterly compounding).

• A 1-year FMP from SBI achieved an APR of 9.89% (equal to an APY of 10.26% with quarterly compounding).

• A 1-year FD from HDFC Bank achieved an APR of 9.25% (equal to an APY of 9.58% with quarterly compounding).

Ignoring the complexities of investment timing and income tax, that’s less than a percentage point in difference! Have you seen anything different with your FMP and FD investments?

Note:

Here’s how you do the APR (simple interest) to APY (compound interest at a certain compounding interval) conversion.

If you’re totally lazy to the APR to APY conversion by hand, here’s a quick Android-application that I hacked. If you’re adventurous enough, you can download the .apk file and install it on your Android-phone as an unsigned application. Let me know if you run into any trouble — it should run fine on most Android environments.