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# Fixed Deposit (FD) Calculator

Calculate your fixed deposit maturity amount instantly with our easy-to-use FD calculator. Total investment, interest rate, and time to see your returns in seconds.

Result Total Value
\$0  (0%)
Returns \$0

## Fixed Deposit Formula

`Maturity Amount = P × (1 + r/n)nt`

• P: Principal amount (initial deposit)
• r: Annual interest rate (in decimal form, e.g., 6.5% = 0.065)
• n: Number of times the interest is compounded per year
• t: Time the money is invested or deposited for, in years

Example:
If you deposit \$100,000 at an annual interest rate of 6.5%, compounded quarterly for 5 years, the maturity amount is calculated as follows:

`Maturity Amount = 100,000 × (1 + 0.065/4)4×5 = \$138,041.81`

If you want it compounded annually, choose 1. For monthly compounding, choose 12.

## Fixed Deposit Account Meaning

A Fixed Deposit (FD) account is a type of savings account where you deposit a lump sum amount for a fixed period at a predetermined interest rate. The interest rate is generally higher than that offered on regular savings accounts, making it an attractive investment option for those seeking secure and predictable returns.

Unlike regular savings accounts, where you can withdraw money at any time, a fixed deposit account requires you to keep your funds locked in for a specific tenure, ranging from a few months to several years. Early withdrawal may result in penalties or lower interest earnings.

At the end of the tenure, the bank or financial institution pays out the original principal amount along with the accumulated interest, which can be either reinvested or withdrawn by the account holder.

Fixed Deposit accounts are popular for their safety and guaranteed returns, making them a favored choice for conservative investors.

## Fixed Deposit Benefits

Fixed Deposit (FD) accounts offer several benefits that make them a popular investment choice for individuals seeking safety and guaranteed returns. Here are some of the key advantages:

• Guaranteed Returns: The interest rate on a fixed deposit is predetermined and locked in for the entire tenure, ensuring you know exactly how much you will earn at maturity.
• Higher Interest Rates: FDs typically offer higher interest rates compared to regular savings accounts, making them a more attractive option for growing your savings.
• Low Risk: Fixed deposits are considered one of the safest investment options because they are not affected by market fluctuations, providing stability and peace of mind.
• Flexible Tenure: You can choose the tenure of your fixed deposit, ranging from a few months to several years, based on your financial goals and needs.
• Loan Facility: Many banks and financial institutions offer loans against your fixed deposit, allowing you to meet urgent financial needs without breaking your FD.
• Tax Benefits: In some cases, you may be eligible for tax deductions on the interest earned from fixed deposits under certain conditions, depending on local tax laws.
• Easy to Manage: Fixed deposits require minimal management, with the option to renew automatically at maturity, making them a hassle-free investment.