FD Calculator for Fixed Deposit

This Online Fixed Deposit (FD) Calculator is designed for calculating the maturity amount of fixed deposits invested in any bank for a specified period.

Investment Amount (Rs)	:
Rate of Interest	:
Period for Deposit(in Months)	:	(fractions not allowed)
Frequency of Compounding	:	SelectMonthlyQuarterlyHalf YearlyAnnualNone
Maturity Amount of FD (Rs)	:
Invested Amount (Rs)	:
Wealth Gain (Rs)	:
Effective Yield in %	:

Note: The more frequent the interest is compounded, the higher the return on your savings will be. The future value of savings with interest compounded at Monthly frequency (i.e., 12 times a year) will be higher than the same with interest compounded at quarterly (4 times a year) interval, which in turn is better than semi annual (twice a year) or annual compounding.

This FD calculator requires some data like – Your Principal Deposit Amount, Rate of Interest, Period (in No. of Months), interest Compounding Frequency. After calculation, you will get the Maturity Amount after the maturity period, Invested Amount, Wealth Gain as interest return, and Effective yield in %.

Fixed Deposits (FD) are popular savings schemes offered by banks. Banks usually offer relatively higher returns on FDs than on savings / current accounts. FD is a deposit of a fixed sum of money for a fixed period of time – which can vary anything from a few days to a few years – at a fixed interest rate known at the beginning of the investment. 

FIXED DEPOSIT

A fixed deposit (FD) is an account that allows you to deposit your money for a fixed period of time, earning you interest at a fixed rate. It gives you a higher rate of interest than a savings bank account.

FDs are fixed-income debt securities issued by banks. Putting money into an FD is like giving a loan to the bank, in return for which the bank pays you interest. This interest may be payable at regular intervals during the term of the deposit or on withdrawal. The date of maturity of the FD is established when the contract is concluded.

The most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of Demand deposit and Fixed deposit). The longest permissible term for FDs is 10 years. Generally, the longer the term of deposit, higher is the rate of interest but a bank may offer a lower rate of interest for a longer period if it expects interest rates, at which RBI lends to banks (“repo rates”), will dip in the future

Benefits of FD:

• Customers can avail loans against FDs up to 80 to 90 percent of the value of deposits. The rate of interest on the loan could be 1 to 2 percent over the rate offered on the deposit.
• Flexibility in the period of term deposit
• Non-resident Indian’s and Persons of Indian Origin can also open these accounts.
• Can avail Premature Withdrawal.
• Can be used as saving under 80C for tax benefit (under some schemes).

Fixed Deposit Calculator Formula:

Any FD calculator works on the following formula:

M = P + (P * r * t/100)

In the above formula –

• M is the maturity amount
• P is the principal investment amount in FD
• r is the rate of interest
• t is the tenure in years

The rate of interest on an FD will differ as per banks and investment period.

Bank FD Calculator Variables:

This fixed deposit calculator for Bank FD uses eight different investment variables that most of the online calculator requires. These fixed deposit calculator variables are:

Principal Amount: This is a fixed amount that is invested in an FD scheme. This deposit amount varies from person to person and scheme to scheme.

Rate of Interest: The Rate of Interest is the variable of the FD calculator that appears as a percentage and is different for different banks.

Period of Investment: The length of the investment or period for the investment in months is another factor that plays a major role in the saving calculator. The longer investment increases the compounding of the returns and hence greater rewards are generated.

Frequency of compounding: The frequency of compounding may be monthly, quarterly, half-yearly, or yearly.

Maturity Amount: The desired or required amount that an investor wants at the end of the investment life cycle is known as the final amount or maturity amount.

Invested Amount: It is the amount that has been invested in the fixed deposit scheme at the time of opening of the fixed deposit.

Wealth Gain: It is the final gain amount over the invested amount in the bank FD scheme.

Effective yield: The effective yield is that variable of the FD calculator that appears as a percentage and is used to compare the effectiveness of different types of saving options. This saving variable matters the most to the investors.

How Online FD Calculator Works?

Following are the steps to calculate the FD returns through this FD calculator:

• Step 1: Enter the fixed principal amount that he wants to deposit.
• Step 2: After this, fill the rate of interest that he gets from his bank or financial institution for the specified period. Different banks or financial institutions offer different rates of interest-based on the amount of investment and period of investment.
• Step 3: The next step that one has to follow is to select the period for saving in months. It depends on saving option requirement for which he wants to stay invested.
• Step 4: Thereafter choose the frequency of compounding. The frequency of compounding may be monthly, quarterly, half-yearly, or yearly.
• Step 5: After submitting all variables required by an FD calculator, one will get the Maturity Amount after the maturity period, Invested Amount, Wealth Gain as interest return, and Effective yield in %

How can an FD calculator help you?

It helps you become financially disciplined and create a habit of savings that can benefit you in the future.

An online FD calculator is a beneficial tool, which shows the estimated returns you will earn after the investment tenure.

Few of the benefits of FD calculator for fixed deposits are –

1. It assists you to determine the amount you want to invest in.
2. Tells you the total amount you have invested.
3. It gives an estimated value of the returns.

Advantages of using this Online Fixed Deposit Calculator:

It is the best FD calculator available online, which provides the following advantages –

• Plan your investment based on the amount and tenure.
• It helps you compute the maturity of the total value of investments at the end of your FD tenure.
• Shows accurate results and helps you save time required during a manual calculation.

An FD calculator for bank’s fixed deposits ensures that your savings portfolio is as per your requirements and financial needs.

FAQ about FD Calculator:

Who is eligible to apply for a fixed deposit account?

Any individual or institution is eligible to apply for the account.

 How do I apply for an FD account?

You can get a bank FD at any bank. You have to open an FD account with the bank to make the deposit by just some bank formalities and fulfill the KYC norms.