Determine the maturity amount & interest earned over it with the FD Calculator
A fixed deposit calculator is a free online tool that can help you determine the amount that your investment will grow to at the end of the FD tenure. You can make use of this calculator to plan your FD investments smartly. The online tool is quite easy to use.
All you need to do is enter a few basic details regarding your fixed deposit investment, such as the deposit amount, the investment period and the rate of interest you expect on the FD. You then need to choose the nature of interest from the options available, such as the following:
Once you have entered these details, the fixed deposit calculator will give you a detailed breakup of the maturity amount as well as the total interest you will earn on your FD. These insights from the online tool can help you decide how much to invest for any short-term or long-term financial goals.
The method of calculating the maturity amount in a fixed deposit depends on the kind of interest you earn on your FD. The interest can be of two types, as follows —
In the case of fixed deposits with simple interest, the FD calculator uses the following formula to compute the maturity amount.
Maturity amount = P + [(P x R x T) ÷ 100]
Here, the letters denote the following parameters:
So, for example, if you deposit Rs. 10 lakhs for 5 years at 6% per annum, the maturity amount will be as follows.
= Rs. 10,00,000 + [(Rs. 10,00,000 x 6 x 5) ÷ 100]
= Rs. 13,00,000
Meanwhile, in the case of fixed deposits with compound interest, the FD calculator uses the following formula to compute the maturity amount.
Maturity amount = P (1 + r/n)nt
Here, the letters denote the following parameters:
So, for example, if you deposit Rs. 1 lakh for 5 years at 6% per annum, compounded annually, the maturity amount will be as follows.
= Rs. 1,00,000 (1 + 0.06/1)1x5
= Rs. 1,33,822
Using an FD calculator gives you several advantages. Here are some of the top benefits offered by this online tool.
You get to know the exact amount you will receive from your fixed deposit at the end of the investment tenure. This makes investment planning easier, and you can define end goals for the maturity amount confidently.
A fixed deposit calculator also makes it extremely easy for you to compare FDs from different banks. You can use the online tool to understand how your maturity amount will vary as the interest rates and tenures change.
The best part is that it costs nothing to use an online FD calculator. You can make use of this tool round the clock and as many times as you need to, without shelling out a penny. Despite being free, the value add offered by the FD calculator is significant for your investment plan.
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Earn an interest at the rate prevailing at the time of making the deposit.
Choose the mode & frequency of interest payout which can be your 2nd source of income.
FDs offer you a wide range in terms of time frame, offering total flexibility
Before you make any investment, you need to understand how much the amount invested is likely to grow over the investment tenure. In the case of a fixed deposit, manually calculating the maturity amount can be tedious, time-consuming and prone to errors. Here is where an FD calculator can help. Here’s how it can be very useful to you.
• It calculates the maturity amount and the interest earned accurately, based on the details you enter into the online tool.
• Since FD returns can be a long drawn process it helps you to save a lot of time
• You can use the FD calculator to compare the maturity amount for FDs offered by different banks and financial institutions.
• An FD calculator also allows you to make informed investment decisions about where to deposit your lump sum capital.
These are the many ways in which a fixed deposit calculator can help you with your financial plan and your investment journey.
The rate of interest on fixed deposits for senior citizens varies from one bank or NBFC to another. However, the interest rate offered on senior citizens’ FDs is usually higher than the regular FD interest rates by 25 or 50 basis points.
The minimum amount you can deposit in your bank FD account varies from one bank to another. Some banks allow you to make deposits with as little as Rs. 5,000. However, many banks may require a minimum deposit of Rs. 10,000 if it is your first FD.
The minimum tenure of a bank fixed deposit is different for different banks. Usually, however, the tenure of a bank FD can be as low as 7 days.
Yes, most banks levy a small penalty for premature withdrawals of fixed deposits. The penalty is generally levied at around 0.5% to 1% of the interest rate, on the balance in your FD account.
Yes, absolutely! All online calculators designed by Motilal Oswal are free to use.
The Online FD Calculator helps you to take a note of your investments growing at a stable rate of interest for a certain period of time. This gives you an upperhand to plan your financials for future.