FD Calculator - Fixed Deposit Calculator Online

FD Calculator: All you need to know about your Fixed Deposit

Fixed Deposits (FD) are considered the safest investment option in India. Offered by almost all banks, including public and private, as well as other financial institutions to strike a perfect balance in an individual's financial portfolio, a fixed deposit offers flexible tenure options with fixed or guaranteed returns.

Those who have invested in FDs can consider using the FD calculator to determine the earned interest and the total invested amount at the time of maturity. This provides you with an idea of your earnings in advance, thereby helping in making future financial decisions.

What is a Fixed Deposit?

A relatively safe investment option compared with mutual funds, a fixed deposit provides an opportunity for people to earn relatively higher interest in comparison with regular savings accounts.

The total interest on the deposited amount is accumulated over a fixed period, while the interest rate depends from one institution to the other (public sector banks, private sector banks, or a small finance bank). Also, those who are senior citizens usually are given higher interest rates, as per the norms.

Those in dire need of money in case of an emergency can easily liquidate the FD and get the funds from the bank. As the tenures in fixed deposit schemes remain flexible, people have the option of choosing the tenure at their convenience.

The amount that has been deposited by an individual at the specified interest rate remains unchanged by any changes in interest rates or market fluctuations. Hence, the returns on a fixed deposit are assured and can be trusted. Also, there are options available to take a loan against an FD. An individual can take loans of up to 90% of the total amount in the fixed deposit at low interest rates.

Also, investments in tax-saving fixed deposits provide you with the option of tax deductions. Also, there is the option for regular income wherein a person can get the interest sum credited based on the requirements on a monthly, quarterly, or annual basis.

Fixed Deposit: Benefits

1. Guaranteed returns

The interest rate you get on the FD when you invest in it remains fixed for the entire term of the investment, providing security and predictability. Investment in FDs also offers higher interest rates than savings accounts.

2. Flexibility in tenure

Banks allow you to withdraw money from the FDs at any time. You also get the choice of the time frame for which you wish to keep your money in the bank. This helps align your investments with your financial goals.

3. Tax benefits

There are some fixed deposits, like the tax-saving FDs, that help people in saving taxes.

4. Safety

Since banks and financial institutions are regulated by the Reserve Bank of India (RBI), FDs are often considered the safest investment option by many people.

5. Automatic renewal option

At the time of maturity, investors have the offer of automatic renewal of their fixed deposits, helping people maintain the savings habit without having to open a new account. In case of a financial emergency, there is the possibility of taking a loan against the fixed deposit.

Before deciding to invest in FD, people should compare the interest rates of different banks. This will help them earn better. Also, they should review the credibility of the lender by examining the safety of the fixed deposit. Always make sure that you choose a bank or a financial institution that offers good customer service and a hassle-free process.

FD Calculator: How does it help?

Those who have invested in fixed deposits or are considering investing must know that calculating the maturity amount of the FD is a bit complicated and time-consuming. This is where the FD calculators make the task easy for you as it allows you to calculate the future value of the investment amount.

1. The FD calculator provides a clear and error-free understanding of your potential earnings from investments in your fixed deposits.

2. It gives a platform for people to compare various FDs based on the tenures and the interest rates provided by banks and other financial institutions.

3. This financial tool allows you to plan your finances effectively to achieve your future financial goals.

4. Those who are senior citizens can also get to know the return offered to them on the FDs.

Fixed Deposit: Formula to calculate maturity amount

People can take advantage of a free-of-cost FD Calculator to know the maturity amount of their fixed deposits. For that, they will just have to choose the type of investment and enter the tenure and principal amount. Once all the required data is filled into the FD interest calculator, it will display on your screen the total maturity amount of the fixed deposit as well as the interest that you will get on the principal.

There are different methods to calculate the interest on fixed deposits:

Simple interest Formula: In this, SI = P x R x T / 100

Here, the SI stands for simple interest, P is the principal amount (the amount invested by an individual), R is the rate of interest (in %) and T stands for the tenure of the fixed deposit.

Compound Interest Formula: In this formula, MA = P (1+r/n) ^ (n*t)

Here, MA is the maturity amount, P is the principal amount, r is the rate of interest (in decimals), n stands for the number of compounding in a year and t is the number of years.