FD Calculator: A fixed deposit is a special kind of investment offered by banks and NBFCs (Non-Banking Financial Companies). When you put your money into a fixed deposit, the bank or NBFC gives you a higher interest rate on it, but you cannot withdraw the money for a certain period of time, which can range from 7 days to 10 years.
To find out how much money you will have at the end of the fixed deposit period, you can use an FD calculator. This is a tool that helps you calculate the interest and the total amount you will receive when the fixed deposit matures. It is easy to use and can be found on the Groww website.
Why is an FD calculator useful?
Well, calculating the maturity amount of an FD can be complicated and time-consuming. But with an online FD calculator, you can do it quickly and effortlessly.
Calculating FD maturity involves various factors, and an FD calculator does all the hard work for you. It provides accurate figures with just a click of a button. This saves you a lot of time and effort that would otherwise be spent on complex calculations.
Moreover, an FD Fixed Deposit calculator allows you to compare the maturity amounts and interest rates offered by different financial institutions. This helps you make an informed decision when choosing where to invest your money.
Fixed Deposit Calculator: Formula to calculate FD
There are two types of FDs: simple interest FD and compound interest FD. We offers calculators for both types.
For a simple interest FD, the Fixed deposit interest calculator uses the following formula:
M = P + (P x r x t/100)
- Here, P is the principal amount (the money you deposit), r is the annual interest rate, and t is the number of years. For example, if you deposit Rs. 1,00,000 for 5 years at an interest rate of 11%, the equation would be:
M = Rs. 1,00,000 + (1,00,000 x 11 x 5/100) = Rs. 1,55,000
For a compound interest FD, the calculator uses this formula:
M = P + P {(1 + i/100) t – 1}
In this formula, i represents the interest rate per period, and t is the tenure. Using the same example as before, the compound interest FD would accrue:
Now we put i = 10 instead of 11
M = Rs. 1,00,000 {(1 + 10/100) 5-1} = Rs. 1,61,051
To use the Groww FD calculator, follow these steps:
- Gather all the necessary data.
- Enter the variables (principal amount, interest rate, and tenure) in their respective fields.
- The calculator will instantly display the maturity amount.
There are several Benefits to using FD calculator:
You can know the exact amount you will receive when your FD matures, helping you plan your future finances accordingly.
Both the simple interest FD and compound interest FD calculators are free to use for registered users.
You can easily compare the maturity amounts offered by different financial institutions.
Groww also provides other calculators that can help you plan your finances, and all of them are free to use.
So, whether you want to calculate the maturity amount of your FD or plan your financial goals, the Groww FD calculator and other tools can be valuable resources.
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