About

A fixed deposit (FD) is a type of investment account and offered by banks that provide an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

Almost all consumer financial institutions offer them, although it’s up to each bank which FD terms it wants to offer, how much higher the rate will be compared to the bank’s savings and money market products, and what penalties it applies for early withdrawal.

The banks or non-banking financial companies (NBFCs) use cumulative and simple interest methods to calculate your earned interest. When you invest in cumulative fixed type your interest is compounded monthly, quarterly, or yearly.

The formulas for calculating the final value of your invested deposit is as follows:

calculate cumulative interest using compound interest formula FB = ID * (1 + R/CF) ^(T*CF)

simple interest formula is FB = ID * (1 + R * T)

Where

• FB - final value or also called future value
• ID - Initial Deposit or also called present value
• R - Expected annual interest rate
• T - Tenure or term
• CF - Compound frequency means that the interest is how many times compounded per year

What can you do with FD Calculator?

• It helps to calculate FD and helps to project your future interest earnings.
• Users can see the accurate final balance and interest. And also can see the final balance in words.
• The chart represents the growth of the total amount and initial amount by the scale of two years.
• Users can easily see their calculations in detail by the table. Based on the selected compound frequency table describes the opening balance, your earned interest, closing balance and period.
• This calculator helps to share your calculations by URL.