## Fixed Deposit Calculator

Several NBFCs and banks offer fixed deposits as a form of term investment. An FD calculator can help one assess the interest and the amount that can be accrued at the time of maturity. It is a simple and easy-to-use online tool. Keep reading to know more about the same and how it works, and other relevant details.

## What is FD Interest Calculator?

An FD rate calculator can assist you in identifying the total amount that you will be eligible to get at maturity for the deposit. It depends on the particular tenure and the prevailing rate of interest. As mentioned before, such an online FD calculator is pretty convenient to use.

Moreover, this calculator allows you to compare diverse interest rates and different bank tenures. As a result, it makes the entire decision-making process much easier, and you can comfortably settle on the best bank/NBFC offering the highest maturity amount for your fixed deposit.

## How Does a Fixed Deposit Interest Calculator Work?

An FD rate calculator can assist you in identifying the total amount that you will be eligible to get at maturity for the deposit. It depends on the particular tenure and the prevailing rate of interest. As mentioned before, such an online FD calculator is pretty convenient to use.

Moreover, this calculator allows you to compare diverse interest rates and different bank tenures. As a result, it makes the entire decision-making process much easier, and you can comfortably settle on the best bank/NBFC offering the highest maturity amount for your fixed deposit.

## Formula of Fixed Deposit Interest Rate Calculators

Fixed deposit calculators can have their working formulae based on either simple interest FD or compound interest FD.

### Formula for Simple Interest Fixed Deposit Calculator

In this case, the interest is calculated on a pre-defined interest rate for a fixed period of time. It’s a simple and straightforward calculation. The formula is:

P X R X T / 100, where,

P= Investment amount

R= Rate of interest

T=Time

### Formula for Compound Interest Fixed Deposit Calculator

The formula is:

A = P (1+ r/n) ^ (nt), where,

P = Investment amount

A = Maturity amount

R = Rate of Interest

T = Time

N = Number of compounding in a year

## Example of FD Calculator Working

Let’s understand the working of an FD calculator with the help of two examples:

### For Simple Interest FD:

Consider an invested amount of INR 2,00,000 for 3 years at 10% interest.

M = INR 2,00,000 + (2,00,000 x 10 x 3/100)

= INR 2,60,000

### For Compound Interest FD:

Considering the same variables as the previous example,

M = INR 2,00,000 {(1 + 10/100) 3-1}

= INR 4,40,000

## Benefits of Using a Fixed Deposit Calculator

Using an FD calculator is not a mandatory condition before investing in a fixed deposit but doing so helps in choosing the best FD schemes and tenure so as to get the maximum advantage.

• Zero scopes of errors – An FD calculator is an automated tool which generating automated results based on the inputs, thus eliminating human errors
• FD calculator helps zero-in on inconvenient & cumbersome calculations, thus proving to be time-saving
• Helps compare various FD schemes by generating results for different FD interest rates and time periods

## Conclusion

Therefore, FD calculators online are easy-to-use tools that can come in handy if you are planning to make a lump-sum investment in fixed deposits, be it in simple interest or compound. These tools provide near-accurate results in a short span of time besides allowing you the flexibility to compare across different banks before arriving at a suitable decision.

## FD Calculator : FAQs

What is a Fixed Deposit calculator?

A fixed deposit calculator helps calculate the maturity amount for a deposit based on the prevailing interest rate for a certain period of time.

What details are needed to use a fixed deposit interest calculator?

The details required to use a fixed deposit rate calculator include the deposit amount, the tenure of deposit, and the prevailing fixed deposit interest rates calculator.

Is it free to use an FD calculator?

Yes. FD calculators are online tools which are mostly freely accessible.

Is the rate of interest earned from a Fixed Deposit taxable?

Yes. The interest rate earned on a fixed deposit is taxable. But, you can claim income tax deductions of up to Rs 1.5 lakhs (u/s 80C) on the amount invested in an FD.

Is it mandatory to provide a PAN card for opening a fixed deposit account?

Yes, it is mandatory to provide a PAN card when applying for a Fixed Deposit scheme. If you do not have a PAN, you will be charged with 20% TDS instead of a usual 10% for Indian residents.