# Fixed Deposit Calculator

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# Stress-free investments for a better life!

Earn fixed returns for investment tenure

Instant liquidity for emergency fund requirements

Better risk management with expert advice

Use the FD calculator below to know about the compound interest earned on your principal investment for your desired tenure.

## FAQs Fixed Deposit Calculator

### 1. What is a fixed deposit calculator?

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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:

• Simple interest

• Interest compounded monthly

• Interest compounded quarterly

• Interest compounded half-yearly

• Interest compounded yearly

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.

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### 2. How can an FD calculator help you?

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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.

• It helps you save a lot of time, since making manual calculations to determine

• FD returns can be a long-drawn process.

• You can use the 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

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### 3. How to calculate the maturity amount in a fixed deposit (FD)?

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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 —

• Simple interest, which is calculated on FDs with monthly payout option

• Compound interest, which is calculated on cumulative fixed deposits

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:

• P is the principal amount deposited

• R is the rate of interest

• T is the overall tenure of the FD

So, for example, if you deposit Rs. 10 lakhs for 5 years at 6% per annum, the maturity amount will be as follows.

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Maturity amount:

= 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.

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Maturity amount = P (1 + r/n)nt

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Here, the letters denote the following parameters:

• P is the principal amount deposited

• R is the rate of interest

• n is the frequency or the number times the interest is compounded annually

• t is the overall tenure of the deposit

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.

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Maturity amount:

= Rs. 1,00,000 (1 + 0.06/1)1x5

= Rs. 1,33,822

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### 4. What are the advantages of an FD calculator?

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Using an FD calculator gives you several advantages. Here are some of the top benefits offered by this online tool.

• Better investment planning:

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.

• Easy comparison of fixed deposits:

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.

• Free and unlimited usage

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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### 5. How is the interest on a fixed deposit (FD) calculated?

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The interest on a fixed deposit is calculated on the basis of the amount invested, the investment tenure and the rate of interest prevailing at the time of making the deposit. In case you opt for the monthly interest payout feature, simple interest is calculated on your FD using the formula shown below.

Simple interest = (P x R x T) ÷ 100

Here, the letters denote the following parameters:

• P is the principal amount deposited

• R is the rate of interest

• T is the overall tenure of the deposit

In case of a cumulative FD, compound interest is calculated using the formula given below.

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Compound interest = P (1 + r/n)nt - P

Here, the letters denote the following parameters:

• P is the principal amount deposited

• r is the rate of interest

• n is the frequency or the number times the interest is compounded annually

• t is the overall tenure of the deposit

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6. What is the interest rate on a fixed deposit (FD) for senior citizens?

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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.

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### 7. What is the minimum amount required to start a bank FD?

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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.

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### 8. What is the minimum tenure of a bank fixed deposit?

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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.

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### 9. Is there a penalty if the bank FD amount is prematurely withdrawn?

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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.

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### 10. Is the Online FD Calculator free to use?

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Yes, absolutely! All online calculators designed by Motilal Oswal are free to use.

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### 11. How will Online FD Calculator help me plan my future financials?

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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.

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