Fixed Deposit Calculator
Calculate maturity amount, interest earned, and returns on your fixed deposit investments
Calculate Fixed Deposit Returns
Initial amount you want to deposit
Annual interest rate offered by the bank
Duration of the fixed deposit
Choose how interest is calculated and paid
How often interest is compounded
Fixed Deposit Calculation Results
Investment Breakdown
Principal Amount: $0.00
Interest Rate: 0% per annum
Investment Term: 0 years (0.00 years)
FD Type: Cumulative FD
Compounding: Annually
Total Payments: 0
Investment Analysis
Example: FD Comparison
Simple FD
Principal: $100,000
Rate: 6% per annum
Term: 3 years
Formula: P × (1 + r × t)
Maturity: $118,000
Interest: $18,000
Cumulative FD (Annual)
Principal: $100,000
Rate: 6% per annum
Term: 3 years
Formula: P × (1 + r)^t
Maturity: $119,102
Interest: $19,102
Key Insight
Cumulative FDs with more frequent compounding yield higher returns due to compound interest effect.
Types of Fixed Deposits
Simple FD
Interest calculated on principal only
Best for terms under 90 days
Cumulative FD
Interest compounded periodically
Higher returns for longer terms
FD Investment Tips
Compare rates from multiple banks before investing
Choose cumulative FD for better compounding benefits
Longer terms typically offer higher interest rates
Consider laddering FDs for liquidity and better rates
Senior citizens often get additional interest rates
Understanding Fixed Deposits
What is a Fixed Deposit?
A Fixed Deposit (FD) is a type of investment where you deposit a specific amount at a fixed interest rate for a predetermined period. It's considered one of the safest investment options with guaranteed returns.
Benefits of Fixed Deposits
- •Guaranteed returns with minimal risk
- •Higher interest rates than savings accounts
- •Flexible tenure options
- •Can be used as collateral for loans
Calculation Formulas
Simple FD Formula:
Maturity = P × (1 + r × t)
Where P = Principal, r = rate, t = time
Cumulative FD Formula:
Maturity = P × (1 + r/n)^(n×t)
Where n = compounding frequency per year
Tip: Cumulative FDs with quarterly or monthly compounding typically yield better returns than annual compounding.
FD Investment Strategies
FD Laddering
Invest in multiple FDs with different maturity dates to ensure regular liquidity and take advantage of changing interest rates.
Auto-Renewal
Set up automatic renewal to continue earning interest without manually reinvesting, but monitor rates for better opportunities.
Tax Planning
Consider tax-saving FDs with 5-year lock-in for Section 80C deductions, though they offer slightly lower liquidity.