android app

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.

Download Icon
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 –

SimpliFi 5-Year Tax Saving FD #1

SimpliFi 5-Year Tax Saving FD #2

Here’s a quick usage manual –

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

  • Enter the Rate of Interest published by your Bank.

  • 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%.

SBI 5-Year Tax Saving FD

Canara_Bank_5-year_FD_0

Let me know if you found this application useful.

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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.

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