Simple Interest Calculator
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About Simple Interest
Simple interest is calculated on the principal, or original, amount of a loan or deposit. The formula for simple interest is:
Simple Interest = Principal × Rate × Time
Where rate is in decimal form (e.g., 7% = 0.07) and time is in years
Common Uses in India
- Fixed Deposits (FDs) with certain banks
- Post Office Savings Schemes
- Personal loans from some financial institutions
- Some government savings schemes
- Short-term agricultural loans
Popular Investment Options in India
| Investment Type | Typical Interest Rate Range | Risk Level |
|---|---|---|
| Savings Account | 2.5% - 3.5% | Very Low |
| Fixed Deposit | 5% - 7% | Low |
| Post Office Schemes | 6% - 7.5% | Low |
| Public Provident Fund (PPF) | 7% - 8% | Low |
| Corporate Fixed Deposits | 7% - 9% | Medium |