Features of FD Calculator
The Fixed Deposit Calculator is a tool that you can estimate the maturity value and interest earned on your fixed deposit investment.
Here's how it works:
- Minimum Deposit Requirement: The least amount necessary to open a Fixed Deposit (FD) is ₹100, though this amount may differ among banks and Non-Banking Financial Companies (NBFCs).
- Fixed Tenure Options: Select the duration of your FD, which can range from as short as 7 days up to 10 years.
- Early Withdrawal Facility: Early withdrawal is permitted,but you will albeit with the imposition of a penalty interest.
- Various Interest Payment Choices: You can receive the interest payments monthly, quarterly, semi-annually, or annually. Alternatively, you can opt for a cumulative option, where interest earned on the principal is reinvested, affording you the advantages of compound interest.
formulas for FD Calculator
- For Simple Interest:
Maturity Value = Principal * (1 + (Interest Rate * Tenure) / (100 * Tenure Period))
- For Compound Interest:
Maturity Value = Principal * (1 + Interest Rate / (100 * Compounding Frequency)) ^ (Tenure * Compounding Frequency / Tenure Period)
Reasons to choose FD Calculator
- Guaranteed returns on investment.
- Tax benefit of up to Rs 1.5 lakh under Section 80C available only on tax-saving FDs.
- You can choose a bank that offers a high interest rate and suits your plan from the Interest Rates Comparison tables.
- The minimum amount set by banks and NBFCs for opening a FD is generally set at Rs. 1,000.
- Senior citizens get an additional interest (usually up to 0.50%, approximately) on the same FD scheme of others. For senior citizens, Banks like SBI, ICICI Bank and HDFC Bank are offering extra interest of up to 0.50% on the existing preferential FD interest rates.