FD Calculator
Fixed Deposit (FD) Calculator
How to Use the Online FD Calculator
Manual calculations are prone to error. An online FD calculator enables you to figure out your maturity amount accurately and instantly.
Step-by-Step Guide:
Enter Total Investment: Input the principal amount you wish to deposit.
Input Interest Rate: Enter the annual interest rate offered by your bank. (Check our section on SBI FD interest rates below for reference).
Select Tenure: Choose your investment duration. Our tool is flexible—you can use it as a standard yearly calculator or a precise daily interest calculator by selecting “Days” or “Months” from the dropdown.
In this Page
What is a Fixed Deposit (FD)?
A fixed deposit is a type of term investment offered by several banks and Non-Banking Financial Companies (NBFCs). When you open an FD, you deposit a lump sum for a specific period, which is “locked” in exchange for a higher rate of interest compared to a standard savings account.
The tenure for these deposits can vary significantly, ranging anywhere from 7 days to 10 years. The primary appeal of an FD is that the interest rate is fixed at the time of booking, shielding your returns from market volatility.
The Math: Interest Formulas & Money Multipliers
Understanding the underlying math can help you choose the right investment. There are generally two ways FDs are calculated: Simple Interest and Compound Interest.
1. Simple Interest FD
This is typically used for short-term deposits (less than 6 months). The interest formula is straightforward:
Where:
P is the principal amount.
r is the rate of interest per annum.
t is the tenure in years.
Example: If you deposit ₹1,00,000 for 5 years at 10%, the total maturity is ₹1,50,000.
2. Compound Interest FD (The Money Multiplier)
Most Indian banks use quarterly compounding. This transforms the calculation into a money multiplier equation, where your interest earns more interest. The formula used by our fd calculator is:
Where:
i is the rate of interest per period.
t is the tenure.
Example: Using the same ₹1,00,000 at 10% for 5 years with compounding, the return jumps to ₹1,61,051. This difference demonstrates the power of the continuous compound interest formula concepts applied over time.
3. Interest Per Day Calculator
For ultra-short-term deposits (e.g., 45 days), banks calculate interest based on the exact number of days. Our tool handles this automatically. When you select “Days” in the dropdown, the formula adjusts t to (Number of Days / 365), ensuring you get a precise interest per day calculator result.
Factors Affecting FD Interest Rates in India
The fd rates in india are not static. They fluctuate based on several macroeconomic factors:
Repo Rate: When the RBI changes the Repo Rate, banks adjust their india fixed deposit interest rates accordingly.
Tenure: Typically, medium-term deposits (1-3 years) offer the highest rates. Very short or very long tenures might offer slightly lower yields.
Age: Senior citizens usually receive an additional 0.50% over the standard fd interest rates in india.
Bank Type: NBFCs and Small Finance Banks often offer higher rates than large public sector banks to attract deposits.
SBI, HDFC & ICICI: Comparing Rates
Before you calculate fd returns, it is essential to know the market rates. While rates change daily, here is a general outlook:
SBI FD Interest Rates
The State Bank of India is the benchmark for trust. SBI FD interest rates are competitive, usually peaking around the 2-3 year tenure. They also offer special schemes like the “Amrit Kalash” with enhanced rates.
Private Bank Rates (HDFC/ICICI)
Private banks often offer 0.25% to 0.50% higher rates than public sector banks. Using our fixed deposit calculator, you can run a comparison: Input the SBI rate, note the result, then input the HDFC rate to see the exact difference in earnings.
- FAQs
1. Is the FD interest calculator free to use?
Yes, our calculator is completely free for unlimited use. You can use it as frequently as you want to compare different scenarios.
2. How does the FD calculator help in future financial planning?
It helps you know the exact amount you are eligible for at the end of your maturity period. This clarity allows you to plan future expenses—like a wedding or education—accordingly.
3. How is Yield to Maturity different from Interest Rate?
The interest rate is the nominal percentage (e.g., 6%). The Yield to Maturity (YTM) accounts for the compounding effect. If a bank offers 6% compounded quarterly, the effective YTM is actually 6.14%. Our calculator displays this effective return in the “Estimated Returns” section.
4. What is the minimum tenure for an FD?
The amount you deposit is locked for a predetermined period which can vary between 7 days and 10 years.