Understanding the FD Calculator

A Fixed Deposit (FD) is a secure investment instrument offered by banks and financial institutions where you can deposit a lump sum of money for a fixed period at a predetermined interest rate. Our FD Calculator helps you determine the maturity amount and the total interest you will earn on your investment. It's a simple way to forecast your earnings from this safe investment avenue.

How Does it Work?

The calculator requires you to input the principal amount (your initial investment), the annual rate of interest, and the investment tenure in years and/or months. Using the compound interest formula, it calculates the total amount you will receive at the end of the tenure. The pie chart gives you a clear visual breakdown of your initial investment versus the interest earned.

Formula Used

The FD maturity amount is typically calculated using the compound interest formula:

Where:

• A = Maturity Amount
• P = Principal Amount
• r = Annual Interest Rate (in decimal)
• n = Number of times interest is compounded per year (our calculator assumes quarterly compounding, n=4, which is common for FDs in India).
• t = Tenure in years

Benefits of Investing in FD

• Guaranteed Returns: The interest rate is fixed, so your returns are not affected by market fluctuations. This provides peace of mind.
• Safety: FDs are considered one of the safest investment options. In India, deposits up to ₹5 lakh per bank per depositor are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation).
• Liquidity: You can avail a loan against your FD or withdraw it prematurely (with a penalty) in case of emergencies, providing a good balance between returns and accessibility.

एफडी कैलकुलेटर को समझना

फिक्स्ड डिपॉजिट (एफडी) बैंकों और वित्तीय संस्थानों द्वारा पेश किया जाने वाला एक सुरक्षित निवेश साधन है जहां आप एक निश्चित अवधि के लिए पूर्व निर्धारित ब्याज दर पर एकमुश्त पैसा जमा कर सकते हैं। हमारा एफडी कैलकुलेटर आपको परिपक्वता राशि और आपके निवेश पर अर्जित कुल ब्याज का निर्धारण करने में मदद करता है।

यह कैसे काम करता है?

कैलकुलेटर को आपको मूल राशि (आपका प्रारंभिक निवेश), ब्याज की वार्षिक दर, और वर्षों और/या महीनों में निवेश की अवधि इनपुट करने की आवश्यकता होती है। चक्रवृद्धि ब्याज सूत्र का उपयोग करते हुए, यह उस कुल राशि की गणना करता है जो आपको अवधि के अंत में प्राप्त होगी।