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Monthly Interest Formula:
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Monthly deposit interest calculation determines the interest earned on savings or fixed deposits in Bangladeshi banks on a monthly basis. The calculation uses the average balance and annual interest rate (4-9.25% as per Bangladesh Bank August 2025 data) to compute monthly earnings.
The calculator uses the monthly interest formula:
Where:
Explanation: The formula converts the annual interest rate to a monthly rate by dividing by 12, then applies it to the average balance to calculate monthly interest earnings.
Details: Accurate interest calculation helps depositors understand their earnings, compare different bank offerings, and make informed financial decisions about their savings and investments.
Tips: Enter the average balance in BDT and annual interest rate (between 4-9.25% as per Bangladesh Bank rates). The calculator will compute the monthly interest amount in BDT.
Q1: What are the current interest rates in Bangladesh?
A: As per Bangladesh Bank August 2025 data, deposit interest rates range from 4% to 9.25% annually, depending on the bank and deposit type.
Q2: How is average balance calculated?
A: Average balance is typically calculated as the sum of daily closing balances divided by the number of days in the month.
Q3: Do all banks in Bangladesh follow the same interest rates?
A: While Bangladesh Bank sets guidelines, individual banks may offer slightly different rates within the prescribed range based on their policies.
Q4: Is the interest calculated monthly or yearly?
A: This calculator computes monthly interest, but interest is typically compounded and paid according to individual bank policies.
Q5: Are there taxes on interest earnings?
A: Yes, interest income from bank deposits is generally subject to tax deductions as per Bangladesh tax laws.