# FD Calculator

- The fixed deposit or FD calculator will assist you in calculating the investment's maturity value if it grows at a particular rate of interest.
- A fixed deposit calculator will help you figure out how much your deposit will be worth at maturity based on the current interest rate for a specific term. The calculator is simple to use and will assist you in comparing different tenures with different interest rates from various banks, making it easier to determine which bank and tenure would provide you with the largest fixed deposit maturity amount.

## How to use a fixed deposit calculator

- The deposit's maturity value is determined by the amount invested, the period of the deposit, the interest rate, and the frequency of interest payments, which might be monthly, quarterly, or cumulative.
- You must first input the date on which the FD was opened, followed by the amount of the deposit, which must be between Rs 500 and Rs 10 lakh. After that, decide on the frequency of interest payments. The duration of reinvestment for monthly and quarterly pay-outs must be entered in days, months, or years. The short-term period can last anything from one to thirty days.
- Finally, input the annual rate of interest earned on the fixed deposit investment.
- To calculate the final maturity value, use the slider to enter various fixed deposit amounts.

## Fixed deposit calculator show

When you provide the relevant information, the Fd calculator will calculate the investment's final maturity value. The maturity date of the investment will be displayed based on the deposit date and tenure. In addition, the maturity value will be broken down into two parts: the investment amount and the interest collected.

## How is the interest on a fixed deposit calculated

Simple interest and compound interest are the two most common methods for calculating the interest rate on a fixed deposit.

### Simple Interest

This is a rate of interest that is fixed for a specific length of time. It's determined by multiplying the annual interest rate, the principal amount, and the number of years left on the loan.

For example, if you deposit Rs.1 lakh for 5 years at a rate of 10% p.a., your interest amount at maturity will be as follows using a simple interest calculation:

- SI: P x R x T/100
- SI: 1,00,000 x 10 x 5/100 = 50,000
- Rs.1.5 lakh is the maturity amount at the end of the 5-year deposit term.

### Compound Interest

This is the amount of interest earned on both the principal and interest amounts. It's determined by multiplying the interest rate by the principal amount multiplied by the number of compounding periods, expressed in years.

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

A = Maturity amount

P = Principal amount

r = rate of interest in decimals

n = number of compounding in a year

t = number of years

For a deposit amount of Rs.10,000 that is kept for a tenure of 3 years at a quarterly compounding interest rate of 10%, the interest at the time of maturity would be:

A= 10,000 {1 + (0.1/4)} ^ (4 * 3)

A = 10,000 (1 + 0.025) ^ (12)

A = 10,000 (1.025) ^ (12) = Rs. 13,449 (approximately)

Compound Interest (CI) = Maturity Amount – Principal Amount

CI = 13,449 – 10,000 = Rs. 3,449

Maturity amount at the end of the 3-year deposit tenure: Rs.10,3449

## Frequently asked questions

### What variables influence the interest rates on FDs?

Interest rates on FDs are influenced by several factors, including the deposit's term, the applicant's age (senior citizens often receive higher interest rates), and current economic conditions.

### What is the duration for which simple interest is calculated?

The simple interest method is used to calculate interest rates for terms less than six months.

### How long does a fixed deposit have to be held?

Fixed deposits have a seven-day minimum term.

### Is there any documentation required to use the online FD calculator?

No, while utilising the FD calculator, no documentation are required.

### Do different banks have their own FD deposit calculators?

You can use the FD interest calculator to figure out how much money you'll get at maturity from any bank based on their rates.

### How much does it cost to use the BankBazaar fixed deposit calculator?

The fixed deposit calculator is completely free to use. It is a free internet application that may be used by anyone at any time and is accessible 24 hours a day, seven days a week.

### How many times can I use a fixed deposit calculator in one day?

You can use a fixed deposit calculator as many times as you want throughout the day.

### Is it possible to use the fixed deposit calculator on a mobile browser?

Yes, you may use the fixed deposit calculator on mobile browsers as well.

### How many FD scheme interest rates can the FD calculator calculate at once?

The fixed deposit calculator can only compute the interest rate for one FD plan at a time.