FD Calculator Online

A Fixed Deposit (FD) Calculator is an online tool that calculates the maturity value of an FD investment based on the initial deposit amount, tenure, and interest rate. It helps investors estimate the returns they will earn and make informed decisions about their investments.

What is a Fixed Deposit (FD)?

A fixed deposit is a financial instrument banks provide investors with a higher interest rate than a regular savings account until maturity. It is known as a time deposit. They have considered to be very safe investments.

What is a Fixed Deposit (FD) Calculator?

With the help of an FD, you can save money while generating interest income. You must deposit your money at a fixed interest rate for a predetermined period. You can calculate the amount you will take at maturity and the interest you earn using an FD calculator. The time you spend manually calculating these numbers can save using fixed deposit calculators.

Types of Fixed Deposits:

1.Cumulative Fixed Deposit
2.Non Cumulative Fixed Deposit
3.Senior citizen FD

How Does FD Calculator Help You?

A fixed deposit (FD) calculator helps you in the following ways:

Input your initial deposit amount, tenure, and interest rate in the FD calculator.
The calculator uses this information to calculate the maturity value of your investment.
It estimates the interest earned and the total amount you will receive at maturity.
The FD calculator can compare investment options by changing the inputs.
The calculator helps you decide which investment option is best suited for your financial goals.
With the help of an FD calculator, you can plan your investments, assess your returns, and track your progress toward reaching your financial objectives.

How Does Fixed Deposit Calculator Work?

The bank interest rate on the fixed deposit has predetermined when investing. Moreover, it remains constant throughout the investment. The following are factors that affect the FD interest rates:

Firstly, the tenure of the investment is an element driving the interest rate; the longer an investor stays invested, the higher the interest rate will be.

The interest rate is higher for a senior citizen, ranging from 0.25% to 0.75% over the normal interest rate. This excess interest is a preferential interest rate—the age to have considered for determining a senior citizen varies from bank to bank. Few consider 55 years, while others consider 60 years or so.

Lastly, the interest on fixed deposits can have calculated using compound and simple interest.

Fixed Deposit in Simple Interest:

You earned Simple interest on the principal amount invested at the interest rate predetermined during the tenure investment.

Formula for calculation

Simple Interest = (P * R * T)/ 100

P- Principal amount invested

R- Rate of interest (%)

T- Tenure

Example of Simple Interest:

Mr Arun invested Rs 100,000 for ten years at an interest rate of 5% annually.

Simple Interest = (Rs 100000 * 5 * 10 years)/ 100 = Rs 50000

The principal amount invested is Rs 100,000

The interest rate (%) is 5% per annum

The tenure of the investment made is ten years

Maturity Value = Simple Interest + Principal amount

= Rs 100000 + Rs 50000

= Rs 150000

Fixed Deposit in Compound Interest:

Compound interest is the earned interest on the principal amount invested and the interest earned. The interest rate had increased to the periods for which the interest would be compounded and multiplied by the principal amount invested.

Compound Interest Formula for calculation

A = P (1+r/n) ^ (n * t)

A: Maturity Amount

P: principal amount invested

r: Interest Rate

n: number of compounding in a year

t: years

Example of Compound Interest:

Mr Arun invested Rs 1,00,000 for ten years at a rate of interest is 5% per year compounded quarterly.

Here,

The principal amount invested is Rs 100,000

Interest Rate is 5%

The number of compounding in a year is 4, i.e. one every quarter

The number of years of investment is ten years

A = 1,00,000 (1+0.05/4) ^ (4*10)

An, i.e. maturity amount = Rs 164361

Interest amount = Rs 164361 – Rs 1,00,000 = Rs 64,361

How to Use a Fixed Deposit Calculator?

You can utilize the Fixed Deposit Calculator to calculate the maturity and interest amount on the Fixed Deposit as follows:

You can choose the Customer Type, i.e. Senior Citizen or Normal Customer.
Select the type of Fixed Deposit, Interest or Cumulative Payout (Quarterly/Monthly) or Short Term FD
The date of FD will default to the current date.
Enter the FD amount.
Choose the format of entering the tenure of FD, in combination with Years/Months/Days or Days only.
Enter the tenure according to the format selected.
The appropriate interest amount, interest rate, maturity date and maturity amount had displayed to the customer.

What are the Advantages of the FD Calculator?

The following are a few of the benefits of using an FD calculator:

Get a correct result for the Fixed Deposit interest at the maturity date.
The FD calculator is both secure and free.
The maturity amounts of various banks can compare.
Calculate maturity amounts much more quickly than with a digital calculator or spreadsheet.

Conclusion:

FD calculators are a helpful tool for investors to estimate returns on their fixed deposit investments. They are easy to use, offer quick results, and help with financial planning. However, investors should remember that the results are only estimates and may not be 100% accurate.

FAQ'S

How much time does it take to use the FD calculator?

Is the FD interest calculator free to use?

Absolutely. You did not have to pay anything to use the calculators. All of our calculators are free.

Is fixed deposit interest compounded?

Usually, the interest for FD with a period of 6 months or less had calculated at simple interest. Compounding of interest had done for FDs with a term of more than six months. Banks mostly calculate interest on discounted rates when going for monthly interest payout.

Is FD calculated monthly or yearly?

In fixed deposits, the interest had accumulated on the deposited amount over a stipulated period running from monthly, quarterly and yearly.

How much tax has a charge on FD?

What is the TDS rate on FDs? Interest income from FDs would attract a TDS of 10% and a TDS of 20% if they did not provide PAN details to the bank.