FD Calculator

Fixed Deposit (FD) Calculator

A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date.

How FD Interest is Calculated

Interest on Fixed Deposits is typically calculated using the compound interest formula, compounded quarterly.

Formula: A = P * (1 + r/n)^(n*t)

Where:

• A = Maturity Amount
• P = Principal Amount
• r = Rate of Interest (in decimal)
• n = Number of times interest calculates per year (typically 4 for quarterly dates)
• t = Tenutre in years

Benefits of Fixed Deposits

1. Guaranteed Returns: FDs offer fixed and guaranteed returns, making them a safe investment option.
2. Flexible Tenure: You can choose a tenure ranging from 7 days to 10 years based on your financial goals.
3. Liquidity: You can withdraw your FD prematurely (subject to a penalty) or take a loan against it.
4. Tax Saving: Tax-saving FDs (5-year lock-in) allow you to claim deductions under Section 80C.

Use this calculator to plan your investments and estimate your returns accurately.