finance

July 8, 2022

5 min read

fixed deposit (FD) is a type of investment instrument offered by banks and NBFCs. in this type of investment, investors put in a fixed amount of capital for a fixed tenure at a fixed rate of interest. at the maturity of the fixed deposit, the bank returns principal money along with the accrued interest. Fixed deposits typically offer a higher rate of interest compared to other types of products like savings accounts. you can choose to deposit an amount in a fixed deposit for a predetermined period which can vary between 7 days and 10 years.

the rate of interest for a fixed deposit is fixed at the time of opening the deposit account and it's independent of any fluctuations in the economy. in case of financial emergencies, you can choose to break the fixed deposit prematurely, however, you will have to pay a certain penalty fee for premature withdrawal.

**how do find out the FD maturity value?**

there are two types of fixed deposit accounts – simple interest fixed deposit accounts and compound interest fixed deposit accounts. check out the formula provided below to manually calculate the fixed deposit maturity amount:

**formula to calculate simple interest fixed deposit **

the simple interest fixed deposit maturity amount can be determined using the following formula –

m = p + (p x r x t/100), where –

m is the maturity amount

p is the principal amount

r is the rate of interest per annum

t is the tenure in years

for example, if you deposit a sum of ₹2,00,000 for 5 years at the rate of interest of 7 percent, the equation reads –

maturity amount (m) = ₹2,00,000 + (2,00,000 x 7 x 5/100)

m = ₹2,70,000

**formula to calculate compound interest fixed deposit **

the compound interest fixed deposit maturity amount (if compounded annually) can be determined using the following formula –

m = p + p {(1 + i/100) t – 1},

where –

m is the maturity amount

p is the principal amount

i is the rate of interest per period

t is the tenure

for example, if you deposit the same amount for the same period and at the same interest rate, the compound interest fixed deposit maturity will increase due to the power of compounding -

m = ₹2,00,000 {(1 + 7/100) 5-1}

m = ₹2,82,955.64

**use the online fixed deposit calculator **

fixed deposit maturity amount calculations are a complex process involving multiple variables, therefore, manual calculation of fixed deposit maturity value can be a complicated and time-consuming task for many investors. to save your time and effort, you can use an online fixed deposit calculator that can help you in your fixed deposit investment planning without breaking a sweat.

there are many fixed deposit calculators available online for free that you can use to determine the interest amount and the principal amount that your fixed deposit will accrue at the time of maturity. it will help you save a lot of time on the complex calculations of fixed deposits.

the online free fixed deposit calculator by CRED is a simple-to-use tool that does all the hard work and gives you accurate data just at the click of a button. CRED fixed deposit return calculator also helps you compare the maturity amount and interest rates of FDs offered by various banks and NBFCs. it becomes easier to make a financial decision when you have all the figures at your disposal.

use the CRED fixed deposit calculator

**a step-by-step guide to using the CRED FD calculator?**

the step-by-step guide to using the CRED fixed deposit calculator is provided below for your reference

**step 1: **gather all the details related to the fixed deposit, for example - the principal amount to be invested, FD tenure, and interest rate offered by the financial institution.

**step 2:** open the CRED FD calculator and enter the variables on their designated slots.

**step 3:** CRED FD calculator will instantly display the amount you will receive at the time of FD maturity

**step 4: **you can also check out the total interest earned on your fixed deposit

**step 5:** change the variables as applicable to compare fixed deposits offered by various banks and NBFCs

**why should you use the CRED fixed deposit calculator?**

with the help of the CRED fixed deposit calculator, you can easily figure out the exact amount you will receive at the time of FD maturity. there are several other benefits of using the CRED FD calculator –

- you can figure out the exact amount you will receive at the end of the maturity period of your fixed deposit and plan accordingly for the future.
- CRED fixed deposit calculator is free and you can use it unlimited times.
- with the help of the CRED fixed deposit calculator, you can easily compare the FD maturity amount offered by various banks.
- you can use the CRED FD calculator anytime and anywhere you want

**use the CRED fixed deposit calculator now**