It is an easy-to-use tool. An online FD calculator may be used to calculate the interest and the amount that will accumulate at maturity. Accordingly, you can determine your FD investment amount. An FD can be locked for a minimum of 7 days to 10 years.
Calculating the maturity of FDs is a complicated process with many variables. The FD calculator performs all of the work for you:
When you have all of the numbers in front of you, you can make an informed decision.
Simple Interest and Compound Interest are the two most used methods for calculating the interest rate on a fixed deposit.
The fixed deposit calculator uses the following formula-
M = P + (P x r x t/100), where –
For example, if you invest Rs.1 lakh for 5 years at an interest rate of 10% p.a., then your interest amount at the time of maturity will be:
M = P + (P x r x t/100)
M = 1, 00,000 x (10 x 5/100) = 50,000
The money you will receive after 5 years will be Rs.1.5 lakh.
For compound interest, the FD return calculator uses the following formula–
M = P (1 + r/n)nt
For example, if you deposit an amount of Rs.10,000 for a tenure of 10 years at a quarterly compounding interest rate of 7%, then your interest amount at the time of maturity with a compound interest calculation will be the following:
The money you will receive after 3 years will be Rs. 13,449.
Here are few advantages of using an FD calculator–
» An FD calculator is an efficient tool that saves time and reduces the chances of human error.
» You can get an accurate estimate of the money you will receive when your FD matures.
» Get the exact amount you’re eligible for at the end of your maturity period so that you can plan your future.
Interest rates on FDs are controlled by a number of factors, including:
» The deposit’s period
» The customer’s age
» Current market conditions
Yes, senior citizens benefit from higher interest rates on their fixed deposits.
The minimum period to invest in a fixed deposit is 7 days and the maximum is 10 years.