FD Calculator — Fixed Deposit Calculator
Calculate maturity amount and interest on your fixed deposit investments
Calculate Fixed Deposit Returns
Initial deposit amount
Annual interest rate offered by bank
FD term in years (max 10 years)
Additional months (0-11)
How often interest is compounded
Fixed Deposit Results
Investment Details
Payout Information
Formula used: Maturity Amount = Principal × (1 + rate/n)^(n×t)
Where: Principal = $100,000.00, Rate = 7.50%, n = 4, Term = 2.00 years
Investment Analysis
Example Calculation
Cumulative FD Example
Principal Amount: $100,000
Annual Interest Rate: 7.5%
Investment Period: 2 years
Compounding: Quarterly (4 times per year)
Calculation
Maturity Amount = $100,000 × (1 + 0.075/4)^(4×2)
Maturity Amount = $100,000 × (1.01875)^8
Maturity Amount = $100,000 × 1.1605
Final Amount = $116,050
Total Interest = $16,050
Simple FD Example
Maturity Amount = $100,000 × (1 + (0.075 × 2))
Maturity Amount = $100,000 × 1.15
Final Amount = $115,000
Total Interest = $15,000
Note: Cumulative FD earns $1,050 more due to compounding!
Year-by-Year Growth
| Year | Balance | Interest |
|---|---|---|
| 1 | $107,713.59 | $7,713.59 |
| 2 | $116,022.17 | $16,022.17 |
Interest Rate Comparison
Based on current inputs with different interest rates
FD Investment Tips
Cumulative FDs offer better returns due to compounding
Simple FDs provide regular income for immediate needs
Longer tenures typically offer higher interest rates
Compare rates across different banks before investing
Consider tax implications on FD interest earnings
FDs are low-risk investments ideal for conservative investors
Understanding Fixed Deposits (FD)
What is a Fixed Deposit?
A Fixed Deposit (FD) is a type of investment account where you deposit a specific amount of money at a fixed interest rate for a predetermined period. At the end of the term (maturity), you receive your principal plus the interest earned. FDs are considered one of the safest investment options with guaranteed returns.
Types of Fixed Deposits
- •Simple FD: Interest calculated on principal only and paid periodically (usually monthly)
- •Cumulative FD: Interest is compounded and reinvested, paid at maturity with principal
FD Calculation Formulas
Simple FD Formula:
M = P × (1 + (r × t))
- M: Maturity Amount
- P: Principal Amount
- r: Annual interest rate (decimal)
- t: Time period in years
Cumulative FD Formula:
M = P × (1 + r/n)^(n×t)
- M: Maturity Amount
- P: Principal Amount
- r: Annual interest rate (decimal)
- n: Compounding frequency per year
- t: Time period in years
Benefits of Fixed Deposits
- ✓Very safe and stable investment with guaranteed returns
- ✓Higher interest rates than regular savings accounts
- ✓Fixed interest rate protects against market volatility
- ✓Can be used as collateral for loans
- ✓Flexible tenure options from 7 days to 10 years
- ✓Senior citizens often receive preferential rates
Limitations to Consider
- ⚠Penalties for premature withdrawal before maturity
- ⚠Interest earnings are subject to income tax
- ⚠Returns may not beat inflation over long term
- ⚠Lower returns compared to equity-based investments
- ⚠Money is locked for the tenure period
How to Improve Your FD Returns
Choose Cumulative FD
Opt for cumulative FDs with compounding to maximize returns through the power of compound interest.
Compare Rates
Shop around and compare FD rates from at least 3-4 banks to find the best interest rate available.
Ladder Your FDs
Split your investment across multiple FDs with different maturity dates for better liquidity and rates.
When Should You Invest in FDs?
Fixed deposits are ideal for:
- • Conservative investors seeking guaranteed, risk-free returns
- • Short to medium-term financial goals (1-5 years)
- • Emergency fund creation with better returns than savings accounts
- • Diversifying investment portfolio with stable, low-risk assets
- • Retirees looking for regular income (through simple FDs)