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## Fixed Deposit (FD) Calculator

Fixed deposit investment has always been one of the top choices amongst Indians when it comes to savings and investments. Even if a person is not financially aware, he must have heard of FD once in his lifetime, FDs are so popular. However, even when you think of starting an FD account, you should evaluate which bank is offering a better interest rate and how much your investment into an FD account can grow over a certain period and for all these, you do not have to spend hours with pen, paper and calculator to manually derive the returns. All you need to do is to use fd interest calculator.

In this article, we will discuss elaborately the Fixed Deposit calculator, its usage, benefits and a lot more. We will also cover the latest interest rates on FDs, features and benefits of investing in this financial instrument and more.

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## What is an Fixed Deposit or FD calculator?

FD calculator can be described as an online financial tool which helps you find out the return on your fixed deposit. All you have to do is to enter how much you are investing in your FD account, the timeline for which you are investing and the interest rate you are getting on your FD. The calculator will give the total accumulated amount at the end of the tenure once you enter these three data.

## Why Use FD Interest Calculator?

The primary reasons for using fd interest rate calculator include –

## Importance of FD calculator

Since fixed deposits are one of the go-to investment options for most people in the country, the importance of the FD calculator is immense for all of them. It is not only about calculating the returns that you can generate from an FD scheme but also about choosing the best FD and the bank which is offering the fixed deposit and also comparing amongst the interest rates and a lot more. From helping you find out the best interest rates on FDs, and best returns, fd return calculators are super handy and easy-to-use online tools for financial decision-making.

## Formula to determine FD maturity amount

Finding out the maturity amount of your FD investment is what an FD calculator does. The formulae that it uses are nothing but what we learnt in school and that is -

**Maturity Amount = P + {(P*r*t)/100}**

Here,

- P
Principal Amount i.e. the amount you invested in the fixed deposit account

- R
rate of interest

- N
tenure of investment

Let’s assume, you invested Rs. 1 lakh in an FD where the interest rate is 7% and you invested the amount for 10 years. So, at the end of ten years, you will receive –

###### Maturity Amount = P + {(P*r*t)/100}

= 100000 + {(100000*7*10)/100}

= 100000 + 70000

= Rs. 170000

So, at the maturity of these FDs, you will receive Rs. 170000.

However, the above formulae were for FDs which have simple interest and for compound interest FDs, the formulae are –

**Maturity Amount = P + P [{(1+i/100) ^ t} -1]**

Here,

- I
interest rate

- T
tenure of investment

If the compounding cycle is quarterly or semi-annually, or for that matter any compounding frequency, and if the rate of interest is given annually, then you have to divide the interest rate by the compounding frequency and multiply the tenure with the same.

If you take the above example but the interest is compounded annually then the maturity amount will be =

###### Maturity Amount = 100000 + 100000 [{(1+7/100) ^10} -1]

= 100000 + 100000 * 0.96715

= Rs. 196715.136

However, if the compounding cycle is quarterly then the maturity amount will be

###### Maturity Amount = 100000 + 100000 [{(1+7/4*100) ^ (10*4)} -1]

= 100000 +100000 * 1.001597

= Rs. 200159.734

While the above calculations may seem hectic, when you do these with the fd calculator, these take hardly a few seconds.

## How Does an Fixed Deposit Calculator Work?

The FD calculator works based on the formulae given above. The calculator has in-built formulae stored in them. You just have to enter the details such as the principal amount/ amount you invest in the fixed deposit, tenure of investment and interest rate and the calculator will give you the results.

**FD deposit interest rates**

The fixed deposit interest rates vary from one bank to another. However, it depends on the repo rate that is decided by the RBI. It also depends on the following factors –

**Tenure of investment –**There are fixed deposits for 7 days and even for 10 years and beyond. This is why every bank has separate interest rates for different fixed deposit tenures.**Amount of investment -**The interest rate on a fixed deposit also depends on the amount you are investing in the fixed deposit. Usually, banks categorise these are deposits below Rs. 2 crores, above Rs. 2 crores and below Rs. 5 crores and above Rs. 5 crores.**Age of FD account holder –**Finally, the age of the FD account holder also determines the interest rate. If the account holder is a senior citizen, the interest rate on FD for them is usually higher than for an account holder below the age of 60 years.

At present, the interest rate varies from 3% to 7.8% for non-senior citizens while for senior citizens, the interest rate on FD varies between 3.25% and 8.3%. Here we have taken into account all types of fixed deposits and the top 12 banks.

## How is interest on FD calculated?

The interest on fixed deposit is calculated using a simple formula when the interest is paid as simple interest and the formulae is –

**I = P*(r/100)*t**

Here,

- I
the total interest accumulated over the tenure of the FD

- P
amount deposited to start the FD

- R
rate of interest

- T
tenure of investment

So, if you invest Rs. 10000 in a 5-year fixed deposit where the rate of interest is 6% then you will earn a total interest of –

###### I = P *(r/100)*t

= 10000 *(6/100) * 5

= 100000 + 70000

= Rs. 3000

Again, if the interest you get on your FD is compound interest, then the formulae will be –

**I = P [{(1+i/100) ^ t} -1]**

Here,

- I
interest rate

Taking a cue from the above example for simple interest FD, if the interest rate is compounded semi-annually then the interest that you will accumulate over five years –

###### I = 10000 [{(1+ 6/2*100) ^ (5*2)} -1]

= Rs. 3439.163

However, you do not have to find out the interest amount on your FD manually when you use the fixed deposit interest calculator. It will give you the interest you accumulate on your FD investment along with the total amount at maturity.

## Step By Step Guide: How to Invest In Fixed Deposit?

Investing in a fixed deposit is super easy. All you need to do is

- To have a bank account or open one where you want to have your fixed deposit. Here the fixed deposit return calculator can help you choose the bank where you can earn the highest return.
- Determine the amount you want to fix and for how long.
- Then fill out the online form for fixed deposit account opening and then enter the details required.
- You have to also submit documents for KYC purposes and then you need to deposit the amount and be done.
- You can also do it offline by visiting the bank branch, there you have to talk to the executives about opening the FD account.
- There also you have to fill out the form and submit the required documents and then your FD account will be opened.

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## The features and benefits of fixed deposits include –

### Risk-free investment

It is the most popular risk-free investment option. Your capital is safe and also you earn guaranteed returns.

### Easy to invest

You just need to open a bank account and deposit in the FD account. There is no need to monitor markets regularly or analyse companies for investing in FDs.

### Simple as well as compound interest

FDs come with both simple interest and compound interest. You can choose your own and obviously, it is always better to opt for compound interest if the option is available.

### Reinvestment option

You can reinvest your interest automatically in a fixed deposit and this will help you earn more interest and return.

### Easy withdrawal options

The tenure of fixed deposit investment is usually flexible and you can withdraw from your fixed deposits without much hassle.

### Tax-savings benefits

The five-year tax savings fixed deposit scheme comes with a tax deduction benefit under section 80C of the Income Tax Act. You can save up to Rs. 1.5 lakhs in a year on the investment you make into these FD schemes.

## Fixed Deposit Eligibility Criteria

A fixed Deposits facility can be available to anyone in the country with valid documents for KYC purposes. There are no strict eligibility criteria for fixed deposits however, it depends on the bank with which you are opening the FD account. They can have a certain minimum deposit amount for opening a fixed deposit account. However, in general, you can have a fixed deposit account with even Rs. 1000 or more.

## Factors to be Considered While Using FD Interest Calculator

Using fd return calculator is no big deal, it is super simple, however, you need to keep in mind that –

You need to put the right variables – the amount of deposit, tenure, and interest rate to ascertain the accurate return on the scheme

You need to choose whether it is a simple interest FD or a compound interest FD. If the interest is compounded then for how many times and accordingly you need to choose the same in the calculator.

## FD Interest Rate for Customers above 60 years

For senior citizens, every bank has separate interest rates on their FDs. Usually, the interest rate on FDs for senior citizens is higher by around 0.5% to 1% in every top bank. The present interest rate on senior citizens’ FD is ranging between 3.25% and 8.3% as per top banks.

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## Frequently Asked Questions about FD

### Is the FD calculator free to use?

Yes, FD calculators are completely free to use. You can use them any number of times without any fees.

### How to use the FD calculator online?

You need to enter the amount you deposited or want to deposit in an FD, the time for which you want to hold the investment and the interest rate you are getting, once you enter these details, the FD return calculator will give you the results.

### How many times I can use an FD calculator in a day?

You can use the Fixed Deposit Calculator an infinite number of times in a day. There is no limit or charges on the same.

## Curious to learn more?

### Disclaimer

^{*}For 30 Year Old Male, Endowment Plan Option, online purchase of policy excluding underwriting extra premium & GST.