A fixed deposit (FD) is a term deposit where you invest a lump-sum amount for a fixed tenure at an agreed interest rate and receive the maturity amount at the end of the term.
Indicative, gross estimates with yearly compounding or simple interest. Actual bank returns may vary. Tax, TDS and penalties are excluded.
A fixed deposit is a popular investment option in India since it offers a higher interest rate depending on the principal amount and tenure.
To understand how much you need to invest to meet your financial requirements, you can use the fixed deposit (FD) calculator. It is a simple tool where upon entering the investment amount, tenure, and interest rate, you can easily calculate the maturity amount.
In this article, we will explore the features and benefits of an FD calculator and how to use the in-built calculator on the CredBuddha website.
Using an online FD calculator can immediately help you determine the maturity amount based on your principal amount, tenure, and interest rate. The process is free and can be used any number of times to decide the amount you would need to invest to meet your financial requirements.
Some of the other reasons to use an FD calculator are given below:
The maturity amount is calculated based on a fixed formula where components like the invested amount, tenure, and interest rate are used for determining the result.
Given below is the formula used for calculating the FD maturity amount:
M = P + (P × r × t/100), where:
For example, if you invest a sum of ₹1 lakh for a period of 5 years at an interest rate of 10%, then the maturity amount you will earn is:
1,00,000 + (1,00,000×10×5/100) = ₹1,50,000
This formula is used to calculate the simple interest of an FD. If you wish to calculate the compound interest on an FD, then the formula used is:
M = P + P {(1 + i/100)t − 1}, where:
If we use the same example as given above, then the maturity amount for the compound interest of an FD would be:
1,00,000 + {(1 + 10/100)5 − 1} = ₹1,61,051
Visit the CredBuddha website to use the inbuilt FD calculator to calculate the maturity amount based on your principal amount, tenure, and interest rate. The steps to use the CredBuddha FD calculator are given below:
The advantages of using the CredBuddha FD calculator are given below:
The table below consists of some of the top lenders in India and their FD interest rates:
| Lender’s Name | 1-Year FD Rates | 3-Year FD Rates | 5-Year FD Rates |
|---|---|---|---|
| State Bank of India | 6.25% | 6.30% | 6.05% |
| HDFC Bank | 6.25% | 6.45% | 6.40% |
| ICICI Bank | 6.25% | 6.55% | 6.6% |
| Axis Bank | 6.25% | 6.50% | 6.50% |
| Punjab National Bank | 6.25% | 6.30% | 6.35% |
| Bank of Baroda | 6.25% | 6.25% | 6.30% |
| Union Bank of India | 6.20% | 6.10% | 6.00% |
| Kotak Mahindra Bank | 6.35% | 6.40% | 6.25% |
| IndusInd Bank | 6.75% | 7.00% | 6.65% |
| Yes Bank | 6.65% | 7.00% | 6.75% |
| IDFC FIRST Bank | 6.50% | 7.10% | 6.75% |
Note: The interest rate offered is for deposits below ₹3 crore. Senior citizens earn an additional 0.5%- 1% interest, depending on the lender. The interest rates are subject to change. Always confirm the rates on the relevant lender official website before making investment decisions.
Visit the CredBuddha website to compare and invest in FD schemes of your choice. Given below are the steps for investing in FD:
Visit the lender’s website to avail their FD services. You can click on the ‘Apply Now’ button and complete the registration process if you are a new customer. As an existing customer, log in using your credentials and proceed to invest directly in an FD by choosing the principal amount and tenure.
Just like a fixed deposit, a recurring deposit (RD) is another investment option you can consider. While there are considerable differences between them, the major one is that for an FD you deposit a lump-sum amount; for an RD you invest monthly till maturity.
The table below mentions the differences between FD and RD:
| Factor | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| How to Invest | Deposit a lump-sum amount | Contribute monthly |
| Frequency of Making Deposits | One-time deposit | Regular deposits made monthly |
| Interest Calculated | Interest is calculated on the lump-sum amount | Interest calculated on the accrued monthly deposit |
| Tenure | 7 days to 10 years | 6 months to 10 years |
| Flexibility | Less flexible in terms of deposits and withdrawals | Allows flexible monthly deposits |
| Monthly Contributions | NA | Monthly contribution to be made |
| Returns | Higher due to a higher principal amount | Can be higher or lower based on your principal amount and tenure |
| Who Should Invest | Those who wish to invest long term and have a lump-sum amount | Those who wish to save by making regular deposits. Also suitable for short-term financial requirements |
| Risk Factor | Low risk | Low risk |
| Missed Payment Penalty | No penalties since a lump-sum amount is deposited | Penalties imposed if monthly deposits are missed |
Mentioned below are the similarities between FD and RD:
Compare RD returns with our Recurring Deposit Calculator.
A fixed deposit (FD) is a term deposit where you invest a lump-sum amount for a fixed tenure at an agreed interest rate and receive the maturity amount at the end of the term.
Simple interest is calculated only on the principal. Compound interest is calculated on principal plus accumulated interest, usually giving a higher maturity for the same rate and tenure.
The result is indicative based on your inputs. Actual maturity may differ due to compounding frequency, TDS, and bank-specific rules.
Yes, for estimation. Confirm lock-in, interest rate, and tax benefits on the bank’s official product page before investing.