Fixed Deposit Calculator – Calculate FD Interest & Maturity Amount
A Fixed Deposit (FD) is one of the safest and most popular investment options in India and many other countries. It allows investors to earn guaranteed returns over a fixed tenure. This FD Calculator helps you calculate the maturity amount and total interest earned based on your investment amount, interest rate, tenure, and compounding frequency.
FD Formula
The compound interest formula used for FD calculation is:
A = P (1 + r/n)^(n × t)
- P = Principal amount
- r = Annual interest rate
- n = Compounding frequency per year
- t = Tenure in years
- A = Maturity amount
How FD Interest is Calculated
Interest on fixed deposits is calculated using compound interest. Banks may compound interest annually, quarterly, monthly, or half-yearly. The more frequent the compounding, the higher the maturity value.
Benefits of Fixed Deposits
- Guaranteed returns
- Low risk
- Flexible tenure options
- Suitable for conservative investors
- Senior citizen higher rates available
FD vs Other Investments
While fixed deposits provide stability, they may offer lower returns compared to mutual funds or stocks. However, for risk-averse investors, FD remains a preferred savings instrument.