I was working out the math behind the FD interest rates and I found that
The ARR( annualised rate of return) is actually higher for each FD term
- Short term FD has ARR of about 5.77-5.78% (interest rate is 5.75%)
- Medium term FD has ARR of about
6.9-7% (interest rate is 6.8%)
- Long term FD has ARR of about 7.56-7.59% (interest rate is 7.25%)
I know the calculations vary depending upon the time of deposit and hence ARR varies a bit. That is why I assume the ARR is not advertised as it would confuse users.
Working out the math makes me appreciate the inclusion of the maturity amount and the interest calculator even more.
Statistically, Investing in a FD in mid quarter will yield maximum ARR.
Great work team
Great catch! You are absolutely correct @Abhishek_Ulayil
We are currently showing the list rate that is given by Federal Bank, however, as there is quarterly compounding, the ARR is higher than the listed rate for all the terms.
As you mentioned, we are unable to show the higher ARR as there are regulatory challenges around the same. We are required to show the rates listed by Federal bank and having 2 rates on the plan would confuse users.
Any ideas on how to inform users regarding the higher than expected returns would be much appreciated!
I have an interesting suggestion, the team could include a learn with jupiter article based on FDs and ARR. then it can be added to Faqs of FD which will point to the learn with jupiter article.
Also Jupiter could make a simplified ARR chart as federal bank has created Here
At the stage where the user confirms the Investment, a disclaimer can be placed that the ARR returns can be higher and the reference link can be the overall rates card that Federal Bank offers on the FDs.
Hi, Currently, it seems to be not considering FD for NRV calculation. I have 10k FD created last month 27th and atleast 1000 every day in my savings account from then. So, NRV has to be atleast 11k. But, it is currently around 9k.
FD seems to be not being considered currently for NRV.
So, when you say next update, when exactly is that ?
I can DM you my mobile number if you want.
@hemanthchandra62 can you let me know your phone number and which version of the app you on
I don’t see any update option in playstore for me.
Messaged you my mobile number
Is there any new lab program?
Not at the moment. @sani
The next lab test should come sometime in April.
After the latest update it seems that FDs are also included in the NRV.