The average interest rate paid on a collection of loans or obligations is known as a weighted average interest rate. To find the weighted average interest rate (WAIR) for fixed deposits, multiply every deposit's amount by its interest rate, sum these products, and divide the result by the total of all deposit amounts. Here is how to calculate weighted average interest rate for fixed deposit:
List each deposit principal and its interest rate.
For example: Deposit A: Rs 200,000 at 6%, Deposit B: Rs 300,000 at 7.5%, Deposit C: Rs 500,000 at 5%.
Multiply each principal by its respective interest rate (in decimal form).
A: 200,000 × 0.06 = Rs 12,000
B: 300,000 × 0.075 = Rs 22,500
C: 500,000 × 0.05 = Rs 25,000
Add all these interest-amount products together (the “weighted interest total”).
Total = 12,000 + 22,500 + 25,000 = Rs 59,500
Add together all the principal amounts (the “total deposit”).
Total deposit = 200,000 + 300,000 + 500,000 = Rs1,000,000
Divide the weighted interest total by the total deposit, then convert to a percentage.
WAIR = 59,500 ÷ 1,000,000 = 0.0595 = 5.95%
This gives you a blended interest rate that reflects the interest you effectively earn (or pay, for loans) across all your deposits combined. This method treats each deposit’s contribution proportionally to its size. Bigger deposits influence the average more.
The weighted average will be more affected by a loan with a larger loan balance than by one with a smaller balance. Loans with larger loan balances contribute more to the overall weighted average when a weighted average is used.
Choose NB InstaCash to Get Instant Disbursal of Personal Loan of Up to 10 Lakhs in Your Account!
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
How to Calculate Weighted Average Interest Rate for Fixed Deposit?
pragati
13 Views
1
15 days
2025-11-28T16:31:48+00:00 2025-11-28T16:32:14+00:00Comment
Share