What is Fixed Deposit ?
Fixed Deposit is a type of deposit in which a sum of money is locked for a fixed time. However, the tenure for the fixed deposit is decided by the person who invests his funds. This tenure could be anywhere from a few days to several years. The principal amount, also known as the deposit amount, is locked in for the duration of the deposit, and the investor earns interest on it. The interest rate is predetermined and typically higher than that offered on a regular savings account. Fixed deposits are considered low-risk investments as they offer guaranteed returns upon maturity. They are popular among investors seeking stable returns and capital preservation. A fixed deposit calculator is a powerful financial tool that facilitates accurate and efficient planning for individuals considering fixed deposit investments. It serves as a virtual assistant for investors, providing a systematic way to compute the maturity amount and interest earned on a fixed deposit based on user input parameters.
How to Calculate Fixed Deposit?
Fixed Deposit calculator uses Fixed Deposit = Principal Amount*(1+Rate of Interest per Annum/Frequency of Interest Paid)^(Number of Periods*Frequency of Interest Paid) to calculate the Fixed Deposit, Fixed Deposit is a type of investment in which an individual invests a lump sum amount for a specific time with a bank. The amount deposited in the FD earns interest at a fixed rate which is set at the time of the account opening. Fixed Deposit is denoted by FD symbol.
How to calculate Fixed Deposit using this online calculator? To use this online calculator for Fixed Deposit, enter Principal Amount (PRT), Rate of Interest per Annum (R), Frequency of Interest Paid (FIP) & Number of Periods (np) and hit the calculate button. Here is how the Fixed Deposit calculation can be explained with given input values -> 11929.89 = 1530*(1+0.56/3)^(4*3).