FD Return Calculator
FD Return Calculator 2024-25: Calculate FD Return Benefits
Fixed Deposit (FD) is a safe and popular method of investment, in which money is deposited for a fixed period and a predetermined interest rate is received on it. FD Return Calculator is a useful tool that helps investors calculate the interest and total return they will receive on their FD. let us know the Uses of FD, Benefits of FD, FD Return Calculator Formula, examples, and methods using FD calculator. You will also know how many types of FD are there in India.
Uses of FD
FD provides investors with fixed income at a fixed interest rate.
FDs are provided by government banks and financial institutions, making it risk-free.
fixed deposit Can be used for financial goals such as children’s education, marriage, and other big expenses.
Benefits of FD
Investing in FD is safe because it is provided by banks and financial institutions.
Investors receive fixed returns after a fixed period.
Investors can choose the tenure as per their needs.
Some FD schemes also offer tax benefits.
FD result facts
The interest rate may vary according to the bank and tenure.
This is the amount that the investor gets after the maturity of the FD.
Interest can be calculated using simple or compound methods.
FD Return Calculator Formula
FD Return Calculator uses the following formulas:
For simple interest:
SI=W×W×T100
where,
P = Principal Amount
R = Interest Rate
T = Time Period
For compound interest:
A=P(1+Rn)nTA
where,
A = Maturity Amount
n = Number of times interest is compounded in a year
Method to use FD Return Calculator
Using the FD Return Calculator is simple. Follow the following steps:
Enter principal amount: Enter the amount you want to invest in the FD.
Enter the interest rate: Enter the interest rate that is being offered by the bank.
enter the period: Enter the tenure for which you want to invest in the FD.
Enter the number of compounds: If the interest is compounded, enter the number of times it will be compounded in a year.
calculate: Click on the Calculate button. The calculator will show you the interest and maturity amount.
Example
Suppose you keep an FD of ₹1,00,000 for 5 years at 6% per annum, and the interest is compounded annually.
For simple interest:
SI=100000×6×5100=₹30,000
For compound interest:
A=100000(1+61)1×5=₹1,34,885
table
Types of FD
There are different types of fixed deposits (FDs), which cater to the diverse needs and preferences of investors. Here are the major types of FD:
1. Regular Fixed Deposit
This is the most common type of FD, in which the investor deposits a fixed amount for a fixed period and receives the amount along with interest at the end of the period.
2. Tax-Saving Fixed Deposit
This FD type is for the purpose of availing tax benefits. Investors can avail tax exemption under Section 80C on the invested amount. However, the lock-in period of this FD is 5 years.
3. Flexi Fixed Deposit)
This FD type is a combination of a savings account and an FD. Investors can withdraw funds from the savings account as per their requirement and the remaining amount keeps earning interest in the form of FD.
4. Senior Citizen Fixed Deposit
This FD is especially for senior citizens, in which they get higher interest rates than normal FD.
5. Recurring Deposit
This FD type allows investors to deposit a fixed amount on a monthly basis. It is suitable for those who cannot deposit a large amount in one go.
6. NRI Fixed Deposit
This FD is specially designed by Indian banks for Non-Resident Indians (NRIs). This includes NRE (Non-Resident External) and NRO (Non-Resident Ordinary) FD.
7. Post Office Fixed Deposit
This FD is provided by the Government of India through the post office. It is a safe investment option and can be invested in for different periods.
8. Corporate Fixed Deposit
This FD is issued by companies to their employees and the public. It may offer higher interest rates than banks, but it also carries some risks.
9. Monthly Income Scheme
In this FD, interest is paid to the investor on a monthly basis. It is suitable for those looking for regular income.
10. Callable FD
In this type of FD, the investor gets the facility to break the FD prematurely and withdraw the amount. In this, the interest rate is slightly lower.
