Fixed Deposit Calculator Online
A fixed deposit (FD) is a type of term investment offered by several banks and NBFCs. These deposits typically offer a higher rate of interest, subject to certain terms and conditions. The amount you deposit in an FD is locked for a predetermined period which can vary between 7 days and 10 years.
The interest rate for FDs is fixed at the time of opening the deposit and independent of any fluctuations in the market. Some financial institutions even allow one to break their FDs prematurely on paying a certain penalty fee. An FD calculator can be used online to determine the interest and the amount that it will accrue at the time of maturity. It is a simple-to-use tool available on the Groww website.
How can an FD calculator help you?
Calculating the maturity amount of an FD can be a complicated and time-consuming process. An online FD calculator enables one to figure it without breaking a sweat.
- FD maturity calculations are complex involving multiple variables. An FD deposit calculator does all the hard work and gives you accurate figures just at the click of a button.
- It helps you save a lot of time on these complex calculations.
- A fixed deposit return calculator enables you to compare the maturity amount and interest rates of FDs offered by different financial institutions. You can make an informed decision when you have all the figures at your disposal.
The formula to determine FD maturity amount
There are two types of FD that you may avail – simple interest FD and compound interest FD. Groww has calculators for both these types of FD.
The fixed deposit calculator for simple interest FD uses the following formula –
M = P + (P x r x t/100), where –
- P is the principal amount that you deposit
- r is the rate of interest per annum
- t is the tenure in years
For example, if you deposit a sum of Rs. 1,00,000 for 5 years at 10% interest, the equation reads –
M= Rs. 1,00,000 + (1,00,000 x 10 x 5/100)
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