About Fixed Deposit (FD)
A fixed deposit (FD) is a type of term investment offered by banks and NBFCs. These deposits usually offer a higher rate of interest, subject to certain terms and conditions. The amount you deposit is locked for a predetermined period, which can vary between 7 days and 10 years.
What is an FD Calculator?
An FD calculator is an easy-to-use tool that helps you determine the interest and the amount you will receive at the time of maturity. It calculates the maturity value instantly, saving you the time and effort of doing manual calculations.
How Can an FD Calculator Help?
- Quickly calculates the maturity amount based on your deposit amount, interest rate, and tenure.
- Helps you compare FD interest rates and maturity amounts from different financial institutions.
- Enables you to plan your investments and financial goals effectively.
FD Maturity Calculation Formula
There are two common types of FD: Simple Interest FD and Compound Interest FD.
Simple Interest FD Formula:
M = P + (P × r × t / 100)
Where:
- P = Principal amount (deposit)
- r = Rate of interest per annum
- t = Tenure in years
Example: If you deposit ₹1,00,000 for 5 years at 10% interest:
M = ₹1,00,000 + (1,00,000 × 10 × 5 / 100) = ₹1,50,000
Compound Interest FD Formula:
M = P × (1 + i / 100)t
Where:
- P = Principal amount
- i = Rate of interest per period
- t = Tenure in years
Example: For the same variables above:
M = ₹1,00,000 × (1 + 10 / 100)5 = ₹1,61,051
How to Use the FD Calculator
- Enter the deposit amount, interest rate, and tenure.
- Select the interest payout frequency (On Maturity, Monthly, Quarterly).
- The calculator will display the maturity amount, total interest, and other details instantly.
Advantages of Using the FD Calculator
- Know the exact maturity amount and plan your future finances accordingly.
- Free to use and works instantly.
- Compare FDs from different banks or NBFCs easily.
Additional Information
Note: The above calculations do not include TDS deductions. Effective Yield means the actual annual return on your FD, including compounding effects.
FD Calculation for Residents & NRIs
For Residents:
- TDS applies on interest earned as per the current rate.
- Minimum FD amount: ₹10,000
- Tenure options:
- Cumulative FD: 6 months to 10 years
- Quarterly Interest Payout: 3 months to 10 years
- Monthly Interest Payout: 3 months to 10 years
- Short-term FD: 7 days to 185 days
For NRIs:
- Applicable for NRE and NRO deposits with premature withdrawal options.
- Not applicable for FCNR deposits.
- Coverage for deposits up to ₹3 crore. For higher amounts, check specific rates.
- Senior citizen rates do not apply to NRE/NRO deposits.
- NRO FDs are subject to TDS.
- Minimum FD amount: ₹25,000
- Tenure options:
- NRE FD: 1 year to 10 years
- NRO FD: 7 days to 10 years
Formula for Compound Interest FD
A = P × (1 + r / n)^(n × t)
Where:
- A = Maturity amount
- P = Principal amount
- r = Annual interest rate (in decimal)
- n = Number of compounding periods per year
- t = Tenure in years
Example: If ₹1,00,000 is invested at 6.6% interest for 3 years, compounded quarterly:
A ≈ ₹1,21,699
