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Fixed Deposit (FD) Calculator

Your FD maturity details will appear here.

Introduction to Fixed Deposit (FD)

Fixed Deposit (FD) is a safe and popular investment option where you deposit a lump sum with a bank or financial institution for a fixed tenure at a fixed interest rate. Knowing the maturity amount and interest earned is crucial for financial planning. This FD Calculator provides accurate calculations instantly.

How to Use the FD Calculator

Enter your investment amount, annual interest rate, and tenure in years. Click on “Calculate Maturity” to see the maturity amount, total interest, and total investment. The calculator uses monthly compounding for accurate results.

Why FD Calculation is Important

  • Helps plan future finances and retirement.
  • Allows comparison between banks and interest rates.
  • Ensures you choose the tenure and interest rate that maximize returns.
  • Provides clarity for tax planning as FD interest is taxable income.

Understanding FD Maturity & Interest

The maturity amount of an FD is calculated using the compound interest formula:

M = P (1 + r/n)^(n*t)

Where P is the principal amount, r is annual interest rate, n is compounding frequency (monthly), and t is time in years. The interest earned is M – P, and total investment is the principal P.

Applications of FD Calculator

  • Planning for short-term financial goals.
  • Comparing bank FD schemes.
  • Estimating returns for retirement corpus.
  • Understanding tax liabilities on FD interest.

FAQs

Q1: Can I use this for any bank FD?
Yes, just enter the principal, rate, and tenure of your chosen bank.

Q2: Does this consider tax on interest?
No, this calculates gross interest. Tax on interest needs to be calculated separately.

Q3: Can I calculate with quarterly compounding?
Currently, this calculator assumes monthly compounding. Quarterly or annual compounding can be manually adjusted by changing the formula.

Conclusion

The FD Calculator is a simple, fast, and reliable tool to calculate your maturity amount, interest earned, and total investment. Use it before making any fixed deposit investment to make informed financial decisions, maximize returns, and plan your financial future efficiently.