What is a Fixed Deposit?

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. It's considered one of the safest investment options in India.

How is FD Interest Calculated?

Banks typically calculate FD interest in two ways:

• Simple Interest: The interest is earned only on the principal amount.
• Compound Interest: The interest is earned on both the principal amount and the accumulated interest of previous periods. Most banks compound FD interest quarterly.

FD Compounding Formula

For an FD with compound interest, banks generally use the following formula:

Where:
A = Maturity Amount
P = Principal Amount Deposited
r = Rate of Interest (in decimals)
n = Number of times interest is compounded per year (e.g., 4 for quarterly)
t = Tenure in Years

Benefits of using our FD Calculator

Using an online FD calculator in India eliminates the hassle of tedious math:

• Accuracy: Complex compounding frequencies (quarterly, half-yearly, annual) are automatically handled for you.
• Comparison: Plan better by comparing the final maturity amounts of FDs across different banks and interest rates.
• Time-saving: Get instantaneous answers on your total interest earned and total maturity amount without login.
• Senior Citizen Rates: Easily assess the extra 0.5% - 1% returns usually offered to senior citizens by adjusting the rate slider.