Fixed Deposit Calculator
Calculate maturity amount & interest earned on fixed deposits
Deposit Amount
$100,000.00
Initial principal
Maturity Amount
$145,279.34
A = P Ć (1 + r/n)nĀ·t
Total Interest
$45,279.34
Earnings on deposit
Maturity Breakdown
Effective Annual Rate (EAR): 7.76% ā this is the actual annual return accounting for the compounding frequency. The more frequently interest compounds, the higher your effective return. Formula: EAR = (1 + r/n)n ā 1.
Understanding Fixed Deposits
Compound Interest Formula
A = P Ć (1 + r/n)nĀ·t
where P = principal, r = annual rate, n = compounding periods per year, t = years. Your money grows exponentially as interest earns interest.
Compounding Frequency
Monthly compounding earns more than yearly because interest is calculated and added to your principal more frequently. The Effective Annual Rate (EAR) shows the true annual return.
FD vs Savings Account
FDs typically offer 1ā3% higher interest rates than savings accounts. However, funds are locked in for the tenure. Premature withdrawal may incur a penalty.
š” FD Investment Tips
- Compare rates across banks ā Small finance banks often offer 0.5ā1% higher FD rates than major banks
- Ladder your deposits ā Split your investment across different tenures (1, 3, 5 years) to balance liquidity and returns
- Monthly vs cumulative ā Choose monthly interest payout if you need regular income, or cumulative for maximum growth
- Tax considerations ā Interest earned on FDs is taxable as per your income tax slab. TDS applies above certain thresholds
- Senior citizen benefits ā Many banks offer 0.25ā0.75% higher rates for senior citizens
- Auto-renewal ā Set up auto-renewal to avoid losing interest when your FD matures
ā ļø Note: Interest rates shown are indicative. Actual FD rates vary by bank, deposit amount, tenure, and prevailing economic conditions. TDS and other taxes may apply on interest earned. Consult your financial advisor for personalized advice.