1. Finance

Using FD Calculator to Maximize Returns on Fixed Deposits

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A fixed deposit also known as FD is a common financial instrument that the majority of the banks and other financial institutions (such as NBFC or non-banking financial companies) offer to their customers. If you invest your money in a fixed deposit scheme you are liable to receive guaranteed returns at a predetermined interest rate. The duration of a fixed deposit is also flexible and you can use an FD calculator to calculate the returns on your investment.


A major advantage of the Fixed Deposit scheme is that you will receive the predetermined interest rate regardless of the market conditions. The duration of FD is quite flexible, it starts from 7 days to 10 years. The power of compounding allows you to gain significant returns on your investment if your investment tenure is long enough.

Know about the FD calculator

With the help of the FD calculator, any investor will be able to determine the total amount they will be receiving during the maturity period of their Fixed Deposit. The total interest amount you will gain from the fixed deposit can be calculated through the same. In the FD calculator, you will have to put things like your total investment amount, overall investment period, and interest rate, the calculator will immediately provide you with the investment results or the total amount you will be receiving at the time of maturity.


You also need to note that the FD calculator can only offer an estimation of the total investment during the maturity period based on the data provided by the investors. It does not claim to offer any kind of assurance.

How can you use an online FD calculator?

Using an FD calculator is a simple and straightforward process. Here is a step-by-step guide that can help you understand how to use the FD returns using an FD calculator:


  • First, you need to select or insert the total investment amount. You can also use the slider available in the online FD calculator to complete the same.
  • Next, you need to provide the exact rate of interest you will be receiving from the bank or other financial institution (where you will be putting your investment amount).
  • Now you need to provide the exact investment tenure or the time period of your FD.
  • After you have given all the above-mentioned information you need to provide the compounding frequency which can be yearly, half-yearly, or quarterly.


You can also calculate your FD returns manually using the formula given below:

A = P(1+r/n)^n*t


In this formula, A denotes the maturity period, t is the total number of years, r denotes the interest rate, n signifies the compounding frequency, and P is the principal amount. FD calculators can help investors calculate the probable investment results with the help of which they can modify and fulfill their financial goals.

Final words

If you are investing your money you need to do it diligently as well as efficiently and the same is applicable when it comes to Fixed Deposit investment schemes which people take very lightly. Remember that if invested for a long period of time Fixed Deposit can offer you handsome returns through the power of compounding. Therefore, you should use an online FD calculator to calculate your total investment returns to determine if it is enough to fulfill your financial goals.


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