FD Calculator
FD Calculator – Fixed Deposit Calculator
A Fixed Deposit (FD) is a secure investment option offered by banks and Non-Banking Financial Companies (NBFCs) in India. It allows individuals to deposit a lump sum amount for a predetermined period, ranging from 7 days to 10 years, at a fixed interest rate. This investment ensures capital protection and provides higher returns compared to regular savings accounts.
How the Calculator Helps You
Calculating the maturity amount and interest earned on an FD can be intricate due to varying interest rates, compounding frequencies, and tenure options. An FD calculator simplifies this process by:
- Accuracy: Eliminating manual calculation errors, ensuring precise results.
- Time-Saving: Providing instant computations, allowing for quick financial planning.
- Comparison: Enabling evaluation of different FD schemes based on interest rates and tenures to make informed investment decisions.
Formula for Calculation
Interest on Fixed Deposits is typically compounded quarterly. The formula to calculate the maturity amount is:
A = P × (1 + r/n) ^ (n × t)
Where:- A = Maturity value
- P = Principal amount
- r = Annual rate of interest (in decimal)
- n = Compounding frequency per year
- t = Time period in years
- I = Interest earned = A – P
Example Calculation
Let's say Nisha invested ₹2,00,000 in an Indian Bank FD at 6.5% per annum for 2 years, compounded annually.
A = 2,00,000 × (1 + 0.065)2
A = 2,00,000 × (1.065)2 = 2,00,000 × 1.13423
A ≈ ₹2,26,845
Interest Earned = ₹2,26,845 – ₹2,00,000 = ₹26,845
So, the maturity amount on Nisha's ₹2 lakh bank FD after 2 years at 6.5% interest compounded annually will be ₹2,26,845.
How to Use the Calculator on Tradejini
To utilize the FD calculator on Tradejini:
- Access the Calculator: Navigate to the FD calculator section on the Tradejini website.
- Input Principal Amount: Choose the investment duration in months or years.
- Enter Interest Rate: Input the applicable annual interest rate.
- Compounding Frequency: Specify how often the interest is compounded (e.g., quarterly, annually).
- Calculate: Click on the `Calculate` button to view the maturity amount and total interest earned.
