Fixed deposit calculator is an online tool that helps you calculate how much rate of interest you can earn by investing in an FD account for a fixed tenure. Online FD calculator is used to calculate the maturity amount by applying compound interest on a monthly, quarterly, half-yearly or annual basis.Read more
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Rate of Interest (Yearly)
The FD calculator considers the deposit tenure, the type of fixed deposit scheme, the principal investment and the rate of interest offered by the bank, to calculate the return value at maturity. It is recommended by the financial experts to use FD calculator to know the value of your investment, before applying for one.
By calculating the rate of interest precisely, FD interest rates calculator allows you to plan your investments better. It is also useful in renewing the deposits. The rate of interest, however, is fixed for the entire tenure, it may differ at maturity. Renewals of deposits are done at the prevailing rate of interest at maturity. Using the FD interest calculator, you can also decide whether you should continue with the same scheme or switch to another FD scheme.
Though FDs don’t offer a lucrative return, they are the safest investment avenue on the earth! By using FD calculator India, rates of interests can be checked even before opening an account. At the time of calculation, both the simple and compound interest are considered. The initially invested amount will be calculated with simple interest where the principle and the subsequent amount are calculated based on the offered compound interest. FD calculator makes it easier for an investor to calculate the maturity amount to be earned. Fixed deposit calculator shows the rate of interest basis of certain inputs provided by the FD seekers such as deposit amount, deposit tenure, and the offered rate of interest.
Calculating the fixed deposit rate of interest is easy using the FD interest rates calculator. Here are the basic steps of calculating your rate of interest with no time. If your esteem bank is providing FD calculator facility then go to the official website and follow the below steps:
Step 1: Select your customer type from the given options i.e. New Customer/Existing Customer/Senior Citizen
Step 2: Choose the type of fixed deposit from cumulative or non-cumulative type
Step 3: Choose the amount to be invested
Step 4: Mention the tenure of deposits
Step 5: Click on the calculate option
After providing the necessary information, the Fixed Deposit interest calculator will automatically suggest the rate of interest to be earned, along with the maturity amount during this tenure.
In order to calculate the rate of interest on FDs by using the FD calculator, you should consider the following factors:
Deposit Amount: This is the amount you invest to open an FD account. The best part of an FD is that one can invest with a minimum of Rs. 1000.
Interest Rate: The rate of interest may vary depending on the FD tenure and from bank to bank. Moreover, the different financial institutes offer a different ROI.
Deposit Tenure: It is based on the tenure you have chosen for investing your money. However, you will have to invest for a minimum of 7 days to 10 years on FDs.
The frequency of Compound Interest: This calculates the maturity amount to be earned at the end of the tenure on monthly, quarterly, semi-annually or annually basis.
The fixed deposit calculator at Policybazaar.com has been designed to meet the requirements of its users and to provide adequate information. By using FD calculator tool, you can effortlessly calculate your interest. It reduces the need for manual calculation of interest. Sometimes, these calculators are more effective even than a computerised spreadsheet. All you need to do is to provide some information such as:
Mention the amount you need to invest in a deposit scheme
Tenure for which, the decided amount is to be paid
Provide the rate of interest offered by the financial institute
After submitting these details, you will need to click on the ‘Calculate’ button. The maturity amount that you can earn will be displayed. This way you can decide whether to open an FD account or not. Moreover, it saves time and money as well. By making real-time calculations through bank FD interest calculator, you can compare various fixed deposit schemes offered by the banks and companies and decide the highest interest-paying schemes. You can directly apply via navigating to the relevant FD scheme page.
Currently, the rate of interest offered on bank Fixed Deposits may range from 3 or 9 per cent, with an extra of 0.5% for senior citizens. However, different banks offer different rates. Therefore, with an FD interest rates calculator, you can get a rough idea on various rates and come across the scheme that fulfills your requirements.
However, fixed deposits offer a fixed interest rate throughout the tenure, the ROI can change at maturity and renewals or re investments are done at the maturity interest rate. So, it may increase or decrease as per the norms of the bank. That’s why it is important to compare the FD schemes on fixed deposit interest calculator and get a right option. However, following are some of the factors that may affect the rate of interest of FD:
Reserve Bank of India (RBI) - Reserve Bank of India (RBI) is the central authority in India to manage and implement all monetary policies across the country. To maintain the maximum control and to keep a record of the flow of funds in the country, RBI executes certain regulations on banks. These regulations have a significant impact on the interests of various financial products.
Recession - Recession means economic slowdown. This time, Reserve Bank of India increases the supply of the money in the market by lowering the rate of interest on the cash or deposits in the banks. This results in a decreased rate of interests in FDs.
Inflation - Inflation has a great influence on the country’s economy. It leads to a devaluation of rupee and the decrease of purchasing power over the lent amount. In such situations, to pay the loss, banks collect more cash by imposing higher interests on deposits.
The compound interest calculator is an online financial tool that allows users to input deposit details such as the amount to be deposited, the tenure of deposit, the offered rate of interest on the chosen FD scheme and the compounding frequency. The complete process takes minimal time and requires a few easy steps. With FD calculator monthly interest tool, comparing and getting user-friendly FDs is a matter of a few clicks now. To calculate the interest, the following formula has been used:
A = P (1+ r/n) n*t
A= Amount to be received
P= Principal amount
The R= rate of interest
N= number of times the interest is compounded per year
Let’s imagine: you have invested Rs. 1500 in a bank for 6 years on the rate of interest 4.43%, compounded quarterly. The rate of interest and the final amount to be earned is:
P = 1500, r = 4.3/100 = 0.043, n = 4, and t = 6
Now, A=1500(1+0.043/4)4*6= 1938.84
After 6 years is Rs.1, 938.84 (or rounded to Rs.1939)
The interest amount will be: A - P = 1938.84 - 1500 = Rs. 438.84.
The interest on FD schemes is calculated in two ways- Simple and Compound Interest. Simple interest method allows the investor to calculate the interest on the principal amount. It doesn’t matter how often the interest is calculated; it is always calculated on the initial deposit amount (principal). On the other hand, when the principal amount and the interest earned thereon are considered to calculate the interest, it is called compound interest. By using FD return calculator, you can calculate the interest earned on both types of interests.
FD tenure is a period for which a fixed amount is invested or locked. The tenure can be ranged from 7 days to 10 years. However, the tenure may vary depending on the terms and conditions of a financial institution. That’s why it is always recommended to compare the fixed deposits by using bank FD calculator online.
Point to be noted- the tenure you decide for investing will also decide the rate of interest. Higher the tenure, higher will be the ROI you are offered with.
The rate of interests on FD is higher than the savings accounts. The interest depends upon the amount to be invested and the tenure. As different banks come with a different scheme and interests, it is beneficial to compare FD rates through an FD rate calculator online. Moreover, compounding frequencies also vary between FDs and normally done on a monthly, quarterly, half-yearly or yearly basis.
You can invest in an FD account only once. Every bank or financial institution comes with a different minimum opening amount. An investment can be started with as low as Rs. 1000 to something in Crores. However, it always varies from bank to bank. The upper limit for tax-saving fixed deposit is 1.5 lakh. You can use FD calculator and enter the principal amount, tenure and offered interest rate to get more detailed information.
The above reasons are enough to make one realize the importance of the FD interest calculator. The manual calculation can be tedious and there is much room for errors. It is imperative to double-check the amount credited to your bank account either at the time of maturity or as pay-outs since there can be a mistake while calculating the returns by the bank or concerned financial institution. It gets more confusing when it comes to deciding on a scheme to determine maturity amount, especially when frequencies of compounding FD schemes differ from bank to bank. Here comes fixed deposit interest rate calculator into the picture, which helps you land on the right deal. You can initiate this with Policybazaar.com FD interest calculator as well. In order to calculate the rate of interest:
Just visit the official website of Policybazaar.com FD calculator
Select the bank of your choice
Mention the tenure up to which the amount will be invested
Mention the investment amount and click on ‘Calculate’ option
The online tool will calculate your maturity amount accordingly applying the prevailing rate of interest on FDs. Let’s imagine:
You want to invest Rs 1,00,000 for 5 years in SBI FD deposits. As per the current rate of interest of 5.40%, the maturity value of your investment will be Rs. 1,30,917.19/-. The interest to be earned is Rs. 30,917.18/-.
The bottom line is FD calculator is an efficient and speedy way to calculate the rate of interest you can earn monthly on your FD account. Being one of the most useful online tools, it allows the individual to know the earnings on maturity even before opening a fixed deposit account.
Therefore, if you want to evaluate your FD returns or plan your investments beforehand, try using FD calculator online. FD return calculator can be proved as a great way to track your earnings while letting them grow.
Simple interest on fixed deposits is calculated by multiplying:
Principal Amount, Rate of Interest annually, and the total tenure of the FD divided by 100.
For example, if you deposit 1 lakh rupees at a 10% annual rate of interest for a period of 5 years, then the interest amount at the time of maturity will be:
Simple Interest = P X R X T / 100
Simple Interest = 1,00,000 X 10 X 5 / 100
Simple Interest = Rs. 50,000
Maturity amount will be Rs. 1,50,000
Compound interest is calculated on both the interest amount as well as the principal amount. It is calculated by using the following formula:
M = P (1+r / n) ^ (n * t)
M = Maturity amount
P = Principal amount
r = Rate of Interest
n = number of compounding in a year
t = Total tenure
for example, if you deposit Rs. 10,000 for 3 years at an interest rate of 10% (compounded quarterly), then the interest amount at the time of maturity will be:
M = P (1+r / n) ^ (n * t)
M = 10,000 (1 + (0.1 / 4) ^ (4 * 3)
M = 10,000 (1 + 0.025) ^ (12)
M = 10,000 (1.025) ^ (12)
M = Rs. 13,449
Compound Interest (CI) = Maturity Amount – Principal Amount
CI = 13,449 – 10,000 = Rs. 3,449
Maturity amount will be Rs.10,3449
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