Fixed Deposit (FD) is regarded as a traditional instrument of investment as well as one of the safest and trusted ones in India. Offered by several banks and Non Banking Financial Companies (NBFCs), FD allow investors to avail guaranteed and fixed returns. The amount deposited in a FD is secured for a predetermined lock-in period with an option of flexible tenure.
FD calculator is a simple and easy to use online tool that helps investors to compute the maturity amount or the return on investment that the investor can earn on a FD.
Returns (% interest rate)
Excluding tax
* You will get a total of and life cover by investing just /yearly for years.
FD calculator is an online tool that allows investors to calculate the expected returns that they can earn at maturity by investing a particular amount in a FD for a fixed tenure. The FD calculator considers several aspects like tenure and scheme of FD, the principal amount invested, and the rate of interest to calculate the maturity amount at the end of the FD tenure.
Thus, a Fixed Deposit Calculator is a highly recommended tool that an investor can use to determine the earnings on a FD investment beforehand to help make a wise investment decision.
It is a complex and prolonged procedure to calculate the maturity amount of a FD investment manually, especially for the layman. However, by using the online FD calculator, one can easily figure out the returns to be received by investing in a FD without any hassle and to save a lot of time.
The investor can compare the interest rates and the maturity amount offered by several banks on FDs to make an informed decision with the help of a FD calculator.
While considering the formula to determine the FD maturity amount, it is important to note that there are two types of interest on FDs that an investor can avail - Simple Interest FD and Compound Interest FD.
Simple interest of FD - formula
SI = P x R x T / 100
SI = Simple Interest, P = Principal Amount, R = Rate of Interest (%)
T = Tenure of FD
Let’s take an example here to understand better;
So, if you are depositing INR 1,00,000 for a term of 5 years with a 10% rate of
interest;
SI = 1,00,000 + (1,00,000 x 10 x 5/100) = 1,50,000
Compound interest of FD - formula
A = P (1+r/n) ^ (nt)
A = Final Amount
P = Initial Principal Balance
r = Interest Rate
n = Number of Times Interest Applied Per Time Period
t = Number of Time Periods Elapsed
For Example, (using same numbers as above)
A = 1,00,000 {(1 + 10/100) 5-1} = INR 1,61,051
It is important to compare different FD schemes using a fixed deposit interest calculator to obtain the best option with the best rates. Below are some factors that determine the rate of interest of FD:
All the financial policies in India are managed and implemented by RBI or Reserve Bank of India. RBI executes certain regulations on financial institutions to have maximum control and to track the flow of funds across the country. The interest rates levied on various investment instruments is based on these regulations.
Economic slowdown or Recession is the time when RBI lowers the rate of interest in the banks by increasing the money supply in the market. This might result in lowering the interest rate in FDs.
Inflation is another factor that influences the economy of a country. In such case, there is a deflation of rupee, which decreases the purchasing power over the lent amount. Hence, banks impose high interests to collect more cash on deposits to pay for the loss.
Inflation is another factor that influences the economy of a country. In such case, there is a deflation of rupee, which decreases the purchasing power over the lent amount. Hence, banks impose high interests to collect more cash on deposits to pay for the loss.
Once you submit all the details mentioned above, just click on the ‘Calculate’ button to check the maturity amount that you can earn.
A fixed deposit calculator offer many advantages to the user such as;
However, you may note that the FD calculator cannot compute the amount of tax that you may have to pay on your FD returns.
There are certain factors to be considered for calculating the rate of interest on FDs by using FD calculators as mentioned below:
