📘 Fixed Deposit (FD) Explained

A Fixed Deposit (FD) is a type of term investment offered by several banks and NBFCs. These deposits typically offer a higher rate of interest, subject to certain terms and conditions. The amount you deposit is locked for a predetermined period which can vary between 7 days and 10 years.

An FD calculator can be used to determine the interest and maturity amount you’ll receive at the end of tenure. Calculations are complex involving multiple variables — this tool simplifies it instantly for you.

💡 How can an FD calculator help you?

• ✅ Saves time by avoiding manual complex calculations
• ✅ Gives accurate maturity values instantly
• ✅ Lets you compare FD returns across banks & NBFCs
• ✅ Helps you plan investments and financial goals effectively

📐 Formula to calculate FD Maturity

1. Simple Interest FD:

M = P + (P × r × t / 100)

Where: P = Principal (Deposit Amount) r = Rate of Interest (per annum) t = Tenure (in years)

Example: ₹1,00,000 for 5 years at 10% → M = ₹1,50,000

2. Compound Interest FD:

M = P × (1 + r/n) ^ (n × t)

Where: P = Principal (Deposit Amount) r = Rate of Interest (annual) n = Compounding Frequency (yearly, half-yearly, quarterly, monthly) t = Tenure (in years)

Example: ₹1,00,000 for 5 years at 10% → M ≈ ₹1,61,051

🎯 Advantages of FD Calculator

• 📌 Know the exact maturity amount before investing
• 📌 Compare FDs from different financial institutions
• 📌 Free, unlimited use on Groww-style calculators
• 📌 Plan your future with clarity

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