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Fixed Deposit Calculator

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Note: In India, banks use quarterly compounding to calculate interest in rupee

Fixed Deposit

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Fixed Deposit (FD) is a type of term deposit offered by banks and other non-banking financial companies (NBFC). Fixed Deposit offer higher interest rates than savings accounts but on certain terms and conditions. For instance, the invested amount should be locked for a fixed tenure ranging between 7 days and 10 years at a fixed rate of interest. Interests earned on FDs are either paid out at regular intervals or are reinvested, depending on the investor’s choice. The maturity amount of the fixed deposit is paid out at the end of the tenure. Fixed Deposit calculators can be used to check the interest and maturity amount that the depositor will get when the tenure ends.

Fixed Deposit Tenure

Fixed Deposit has a time period or tenure for which the sum invested gets fixed or locked. You can avail an FD for a tenure of anywhere between 7 days and 10 years. Different financial institutions offer different tenure options. However, it is best if you compare fixed deposits offered by different financial institutions and then make a choice. What is worth noting here is that the tenure you choose will also decide the interest rate the bank will offer you. Longer the tenure, higher will be the FD interest rate.

FD Interest Rate

Interest rates on FD are higher as compared to savings accounts and depend upon the Fixed Deposit amount and tenure. Interest rate on Fixed Deposit varies from one bank to another. Hence, compare fixed deposit rates of different banks to make a smarter choice. The interest payout or compounding frequencies vary between FD schemes and are usually done on a quarterly, half-yearly or yearly basis. However, keep in mind that the interest rate for tax-saving FDs is decided at the start of every financial year by the government and is same across banks.

Investment Amount

Investment in a Fixed Deposit is made only once and the minimum amount for opening an FD varies in case of different financial institutions. You can start with as low as Rs 5000 and invest even up to Rs 10 Crores or more. Enter the principle amount, tenure and interest rate in the FD calculator to get the details.

Benefits of Investing in a Fixed Deposit

  • Assured returns: FD is a secure investment and yields assured returns for your investment.
  • Inculcates saving habit: The investment made in an FD is locked for a fixed time-period and helps develop a habit of saving.
  • Better returns than savings accounts: It yields better returns as compared to a savings account as the interest rate is higher. In a savings account, you can earn interest at up to 6%, whereas in an FD, interest rates start from 7%. Read more about the advantages of fixed deposit investment
  • Early withdrawal: You can withdraw the money invested in a Fixed Deposit even before the maturity date by paying a nominal penalty charge.
  • Interest payment available at different intervals: Interest can be paid out at maturity, annually or monthly basis depending on the term you choose.
  • Flexible tenure options: You can enjoy the benefit of flexible tenure options and fix your money as long as you want to. You can invest your money for a time period ranging from 1 week to 10 years.

Fixed Deposit (FD) vs. Recurring Deposit (RD)

Both FD and RD are term deposits which earn interest at the same rate for the entire tenure of the deposit. At maturity, the invested amount is paid out along with the accrued interest. However, FD of same amount and same tenure as that of RD fetches more returns. The reason being, in case of FD you make a lump sum investment and so the entire money earns interest for one year. Whereas, in RD the first installment earns interest for 12 months, the second for 11 months, third for 10 months and soon.