How Does an FD Calculator Help Select the Right FD Scheme in 2024?

In 2024, the role of Fixed Deposit calculators becomes increasingly important in helping individuals make informed decisions about selecting the right FD scheme. These calculators serve as invaluable tools, empowering investors by providing accurate projections of returns based on various parameters.

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What are Fixed Deposits?

Fixed deposits, commonly known as time deposits or term deposits, are financial instruments offered by banks and financial institutions. They represent a type of investment where an individual deposits a specific sum of money for a predetermined period, ranging from a few months to years, at a fixed interest rate. Upon maturity, the depositor can either withdraw the entire amount or choose to reinvest the principal along with the interest earned.

Fixed deposits are considered a relatively low-risk investment option, as the principal amount is generally secure, and the interest earned is assured. 

How Does an FD Calculator Work?

Fixed Deposit (FD) calculators utilise either simple interest or compound interest formulas. 

Simple interest

It represents the interest earned on the deposited sum at a fixed interest rate over a specified period. The calculation involves multiplying the interest rate by the principal amount and the duration of time.

The Simple interest FD Calculator works based on the following formula
SI = P*R*T/100
Terms used in Simple interest FD Calculator
Simple Interest
Interest Rate
Principal Amount
Time Period

Compound interest

It represents the interest gained on the principal deposit and the accumulated interest. The calculation involves multiplying the initial deposit amount by the interest rate raised to the duration for which the interest is compounded.

The Compound interest FD Calculator works based on the following formula
A = P (1+r/n) ^ (n * t)
Terms used in Compound interest FD Calculator
Simple Interest
Interest Rate
Principal Amount
Time Period
Time Period

How to Use Policybazaar’s Fixed Deposit Calculator?

Follow the 3 simple steps to calculate the FD returns online using the Policybazaar FD Interest Rates Calculator:

Step 1: Open the Policybazaar FD Calculator on the official website.

Step 2: Adjust the following details as per your choice:

  • The Principal amount you want to invest

  • Rate of interest

  • The number of years of investment (Tenure)

Step 3: The Fixed Deposit interest calculator will suggest your expected interest and related maturity returns.

Why is an FD Calculator Useful?

Listed below are some of the reasons why FD Calculator is useful:

  • Financial Planning: Enables effective planning by projecting future values of fixed deposit investments.

  • Accurate Projections: Provides precise estimates of maturity amount and interest earnings based on key variables.

  • Comparison Tool: Allows users to compare scenarios, adjusting parameters for informed decision-making.

  • Informed Decisions: Helps investors align deposits with financial goals and risk tolerance.

  • Time-Saving: Eliminates manual calculations, saving time and ensuring accuracy.

  • Goal Setting: Assists in setting specific financial goals and understanding deposit contributions.

  • Risk Assessment: Evaluates risk and return, aiding investors in aligning choices with their strategy.

People Also Read: Which Bank Has Highest Fixed Deposit Interest Rate?

How Can an FD Calculator Help in Future Financial Planning?

  • Projection of Returns: An FD calculator allows individuals to project future returns on their fixed deposit investments based on different variables, aiding in long-term financial planning.

  • Goal Alignment: Users can assess how fixed deposits contribute to specific financial goals, helping them align investments with their overall financial objectives.

  • Risk Evaluation: By estimating potential returns, the calculator assists in evaluating the risk and return profile of fixed deposit investments, enabling informed decisions.

  • Comparative Analysis: It facilitates the comparison of various deposit scenarios, helping users choose the most suitable options to meet their financial needs.

  • Savings Strategy: Individuals can use the calculator to strategize and optimize their savings by adjusting parameters like principal amount, tenure, and interest rate.

  • Retirement Planning: For long-term financial planning, the FD calculator can project the growth of deposits over several years, aiding in retirement planning and building a financial safety net.

  • Informed Decision-Making: By providing accurate estimates, the FD calculator empowers users to make informed decisions about their investments, ensuring a more secure financial future.


  • Can I use an FD calculator to compare different banks?

    Yes, most FD calculators allow you to compare FD interest rates and maturity amounts across different banks and financial institutions. This helps you choose the scheme that offers the best returns for your needs.
  • Are FD calculators accurate?

    Yes, FD calculators provide estimates based on the information you input. However, the actual maturity amount may vary slightly depending on factors like tax deductions and changes in interest rates.
  • Where can I find a reliable FD calculator?

    You can use Policybazaar’s FD calculator to calculate returns on your fixed deposit investments.

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FD Calculator

Total Investment

₹500 ₹30L
Enter Total Investment

Rate of Interest (Yearly)

1% 15%
Rate of Interest (Yearly)

Time Period

1 Year 15 Years
Enter Time Period
Interest Earned
Maturity Amount

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