## Fixed Deposit Calculator

Fixed Deposits, is one of the easy-to-go and safe Term deposit scheme offered by Banks.

The most popular form of Term deposits are Fixed Deposits. The other variant of Term deposits are are Recurring Deposit and Flexi Fixed Deposits.

The attractive part of Fixed Deposit is because the banks offer higher rate of interest to FDs than saving accounts. The longest possible deposit term is 10 years. Generally, the longer the period of deposit, higher is the rate of interest but this has to be verified with the bank before opening the Fixed Deposit account.

#### Fixed Deposit Calculator

Rs.
Years
%

Result:

 Deposit Amount: 0 Number of years: 0 interest rate %: 0 Maturity 0

### Benefits of Fixed Deposit

• They are the safest investment instruments, and offer greater stability
• Returns on fixed deposit are assured, and there is no risk of loss of principal
• There is no effect of market fluctuations on your FD, which ensures greater safety of your investment capital

### Cumulative vs Non-Cumulative

• When invest in cumulative method, the interest is compounded annually, but paid at maturity.
• When invest in non-cumulative mehtod, the interest paid out periodically. You can choose for interest payouts monthly, quarterly, half-yearly, or annually.

### Compounding Frequency

The Fixed Deposit calculator includes options for Compounding Frequency as,

• Monthly Compounding
• Quarterly Compounding
• Half-Yearly Compounding
• yearly Compounding

Interest will be compounded either at the start of the deposit term or at the end of the deposit term.

### How to use this FD Calculator?

• Deposit Amount: Enter the amount you wish to deposit the money.
• Number of years: Enter the number of years you wish to continue the deposit.
• Interest Rate: Enter the FD interest rate offered by the bank. This will vary based on the bank you wish to open the Fixed deposit.
• Compounding Frequency: Frequency of interest pay out, monthly, quarterly, half-yearly or yearly.

### Fixed Deposit Interest Calculation Formula:

This FD calculator using the compound interest formula in order to calculate the maturity value.

#### A = P * [ (1 + R/n) ^ n*t ]

Where,
• A = Maturity amount
• P = Principal amount
• R = Rate of interest in decimal
• n = number of compounding term in a year
• t = number of years