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Fixed deposit is one of the most widely-used and safest investment instruments in India. It offers fixed or guaranteed returns with flexible tenure options. It is offered by several banks and financial institutions to strike a perfect balance in one's financial portfolio. FD calculator can be used to determine the earned interest and the maturity amount payable at the time of maturity of your FD investment.
A fixed deposit calculator is an online tool designed to help an applicant get an idea of his expected earnings at the end of a fixed deposit tenure. It takes into account the principal amount, tenure, and applicable rate of interest to calculate the maturity amount in the end. So, before you invest in a Fixed deposit this calculator gives you an idea of your earnings in advance, thus helping you make a wise financial decision.
You can calculate the interest on your fixed deposits and the total amount you will receive on its maturity. Follow these steps to use the ET Money FD calculator:
So using the FD return calculator, you will be able to see your total investment, interest earned, and maturity value at the end of the fixed deposit's tenure.
You can use the ET Money FD Maturity Calculator to know your fixed deposit maturity amount. Just go to the fixed deposit calculator online and choose the type of investment. Then, choose the tenure and your principal amount. Once you input this data into the fixed deposit interest calculator, the total maturity amount of the fixed deposit along with the interest you will earn on the principal will be automatically displayed.
There are two methods to calculate interest on fixed deposits - simple interest and compound interest. Let us look at both of them.
The formula for simple interest is;
SI = P x R x T / 100
Where,
SI = Simple interest
P = Principal amount (amount invested)
R = Rate of interest (in %)
T = Tenure of the fixed deposit
Let us assume, you invest a sum of ₹15,000 for 5 years at 10% interest rate per annum.
On maturity, the simple interest you earn will be:
₹15,000 x 10 x 5 / 100 = ₹7,500 Therefore, the total maturity amount is ₹22,500 (₹15,000 + ₹7,500)
The formula for compound interest is;
A = P (1+r/n) ^ (n*t)
Where,
A = Maturity amount
P = Principal amount
r = Rate of interest (in decimals)
n = number of compounding in a year
t = number of years
Let us assume, you invest ₹10,000 for 3 years at 10% interest rate compounded quarterly.
At the time of maturity, the calculations are as follows:
A = 10,000 [1+ (0.10/4)] ^ (4*3)
A = 10,000 (1 + 0.025) ^ (12)
A = 10,000 (1.025) ^ (12)
A = ₹13,449 (approximately)
Thus, compound interest earned over 3 years comes to ₹13,449 - ₹10,000 = ₹3,449. FD interest calculator uses the compound interest formula to calculate FD interest earned and the final maturity amount.
There are many advantages of using ET Money’s FD calculator. Some of these are:
However, do keep in mind that all FD calculators have a limitation. The FD calculator cannot calculate how much tax you might have to pay on your FD returns.
There are multiple factors that affect the interest rates you get on FDs. Here are 4 key reasons:
Usually senior citizens get 0.25-0.5% extra return as compared to investors below the age of 60. But there’s no particular number to answer this question. Bank FD rates for senior citizens keep changing with time due to multiple reasons as mentioned above. The interest rate can also vary for different banks.
Currently, you can get 5-7.5% interest rate on various FDs. You can visit our fixed deposit section to see multiple options in detail.
Some FDs offer a monthly interest. But, typically, you get the interest at the end of the maturity.
There is no straightforward answer. On some FDs, the interest is calculated using compound interest. But for some FDs, banks and NBFCs also use the simple interest formula. It can vary depending on the FD type, tenure and the amount of the deposit.
You don’t always need separate FD calculators. If you know the interest rate, you can use ET Money’s FD interest calculator to calculate the maturity amount you will get from any FD based on their interest rates.
