FD Calculator to Calculate the Return and Fixed Deposit Interest Rates on your investment. Input your investment amount, FD Period & Interest Rate to know your mature amount.
A fixed deposit (FD) is a financial instrument provided by banks and NBFCs. The rate of interest of an FD is higher than the interest rate of a savings bank account.
The interest amount on FD is either paid at regular intervals to an investor or paid at FD maturity, as opted by an investor. A separate bank account is not required to invest in an FD.
What is the FD Calculator?
A fixed deposit (FD) is a financial instrument provided by banks and NBFCs. The interest rate of an FD is higher than interest rate of a savings bank account.
The interest on FD is either paid at regular intervals to an investor or paid at FD maturity, as opted by an investor. A separate bank account is not required to invest in a fixed deposit account
The fixed deposit calculator helps an investor estimate the FD maturity amount and the wealth to be gained meeting his financial goals. The more the deposit amount for a longer period, the higher will be the applicable interest rate and interest earned due to the power of compounding.
The fixed deposit calculator only provides an estimation of wealth gained and does not provide any assurance or claim the value estimated based on the inputs provided.
How to use Scripbox's Fixed Deposit Calculator?
Scripbox's online fixed deposit calculator is available on our website. Calculate the return and interest on your fixed deposit on the maturity of the fixed deposit with our FD calculator
Follow the below-listed steps to get the maturity amount and estimated returned earned
Visit our website.
To use the fixed deposit calculator, the below information is required.
Fixed deposit amount
Select the compounding period i.e. monthly, quarterly, half-yearly or yearly. Interest earned depends on the power of compounding, hence select the appropriate period.
Adjust the FD period in years
Rate of interest
On the basis of the above details provided the online FD calculator calculates the following
Total initial investment
The wealth gained
The maturity value
You can also refer to the Fixed Deposit Investment Graph. This graph provides a visualization of the maturity amount and the wealth gained at the end of the tenure of investment.
The fixed deposit calculator can be used by any investor who wants to invest in a fixed deposit and wants to get an estimate of wealth to be gained for a given investment amount can use simple and easy to use fixed deposit calculator.
It is very important for an investor to know the expected amount in advance and before making the investment. This will ensure whether the selected investment option will serve the financial goal of the investor at the maturity or not. Once an investor has the financial goal in his mind, he can also decide on which investment option to select.
For example - If Mr. Arun wants to invest a lump sum amount of Rs 1 lakh, he has a couple of investment options in place like fixed deposit, debt mutual fund, PPF. He can use Scripbox’s fixed deposit interest calculator along with a mutual fund calculator and PPF calculator. And once he knows the wealth expected to be gained at the maturity under each option, he can take the best-suited investment option.
Fixed Deposit Calculation Formula
The bank interest rate on the bank fixed deposit is pre-determined at the time of making the investment and remains constant over the period of investment. There a couple of factors that affect the fixed deposit interest rates mentioned below:
The tenure of the investment is a factor driving the interest rate, the longer an investor stays invested higher will be the interest rate
The rate of interest is higher for a senior citizen that ranges from 0.25% to 0.75% over the normal rate of interest. This excess interest is called a preferential interest rate. The age to be considered for determining a senior citizen differs from one bank to another bank. Few of them consider 60 years while others consider 55 years or so.
The existing economic condition is also a direct determining factor, the financial institutions and banks consider economic conditions including repo rate, inflation rate to determine interest rates
The interest on fixed deposit can be calculated by two methods, simple interest, and compound interest.
We have explained the calculation formula through both the methods below.
Simple Interest
Simple interest is the interest earned on the principal amount invested at the predetermined interest rate during the investment tenure.
Formula for calculation
Simple Interest = (P * R * T)/ 100
P- Principal amount invested
R- Rate of interest (%)
T- Tenure
Example
Mr. Arun invested Rs 100,000 for 10 years at an interest rate of 5% per annum.
Maturity Value = Principal amount + Simple Interest
= Rs 100,000 + Rs 50,000
= Rs 150,000
Compound Interest
Compound interest is the interest earned on the principal amount invested and the interest earned. The interest rate is raised to the number of periods (years) for which the interest will be compounded and multiplied to the principal amount invested.
Formula for calculation
A = P (1+r/n) ^ (n * t)
A = Maturity Amount
P = Principal amount invested
r = Rate of Interest (in decimals)
n = number of compounding in a year
t = number of years
Example
Mr. Arun invested Rs 1,00,000 for 10 years at an interest rate of 5% per annum compounded quarterly
Here,
Principal amount invested is Rs 100,000
Interest Rate is 5%
Number of compounding in a year is 4 i.e. 1 every quarter
A fixed deposit provides interest higher than the interest on the savings account balance. So, it is better to invest in an FD than your money lying in a savings account. However, an investor must also evaluate other investment options that provide a return higher than a fixed deposit. These other investment options are debt mutual funds, tax saving mutual funds. These options provide returns higher than fixed deposits but also comes along with a market fluctuation risk.
Frequently Asked Questions
Who should invest in a fixed deposit?
Anyone who wants to get a fixed return at a minimum risk can invest in fixed deposit. An investment in a tax-saving fixed deposit allows tax deduction up to Rs. 1,50,000 under section 80C of the income tax act.
What is the maximum and minimum amount to invest in a fixed deposit?
The maximum and minimum amount to invest in a fixed deposit varies from one bank to another. However, if an investor wishes to invest above Rs 1 crore, he may ask for a customized interest rate from the bank.
What is the minimum tenure for which one can invest in fixed deposits?
The customers can choose to invest their money for a minimum period of 7 days up to a maximum tenure of 10 years.
Are there any additional benefits of investing in the case of senior citizens?
Investments done by them are offered a higher rate of returns than whatever is fixed for a regular fixed deposit.
What is the fixed deposit interest rate for senior citizens?
The rate of interest for senior citizens is higher than the interest rate for other citizens. The fixed deposit interest rate ranges from 9% to 9.5% depending on the tenure of a fixed deposit account.
Is interest earned on a fixed deposit taxable?
Yes, the interest amount on a fixed deposit is taxable at the applicable slab rates. TDS @ 10% is deducted if the interest amount is greater than Rs 10,000
