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 â€” it should run fine on most Android environments.
- 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%.
Let me know if you found this application useful.