How This FD Calculator Works & Fixed Deposit Details
🔍 Understanding Fixed Deposits (FDs)
A Fixed Deposit (FD) is a safe investment option offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. FDs provide guaranteed returns and are ideal for risk-averse investors.
Key Features of FDs:
- Fixed Interest Rates – Earn stable returns without market risks.
- Flexible Tenures – Choose from 7 days to 10 years.
- Higher Interest for Seniors – Senior citizens get 0.25%–0.75% extra.
- Tax Implications – Interest is taxable as per your income slab (TDS may apply).
🧮 How This FD Calculator Works
This calculator helps you estimate your maturity amount based on:
- Principal Amount – The initial sum you invest.
- Interest Rate (%) – The annual FD rate offered by the bank.
- Tenure (Months/Years) – The duration of your FD.
- Compounding Frequency – Interest can compound monthly, quarterly, or annually.
Formula Used:
The calculator computes maturity value using the compound interest formula:
A = P × (1 + r/n)n×t
- A = Maturity Amount
- P = Principal Amount
- r = Annual Interest Rate (in decimal)
- n = Compounding Frequency per year
- t = Tenure in years
💡 Tips for Maximizing FD Returns
- Compare interest rates across banks before investing.
- Opt for cumulative FDs if you don't need regular payouts (higher returns).
- Use the 5-year tax-saving FD for deductions under Section 80C.
- Ladder your FDs (split into multiple FDs) for better liquidity.
📌 Why Use Our FD Calculator?
- Quick & Accurate Results – Instantly computes maturity value.
- Flexible Inputs – Adjust tenure, principal, and compounding frequency.
- Financial Planning – Helps compare different FD schemes easily.
Start planning your risk-free investments today with our easy-to-use FD calculator! 💰
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