Fixed deposit and fixed deposit calculator
Fixed deposits (FDs) are one of the safest and most popular financial instruments available in India. Whether its bank FDs or corporate FDs, the majority of risk averse investors, and even salaried individuals prefer investing in fixed deposits to other more lucrative investment avenues. The reason is simple - fixed deposits guarantee a fixed maturity amount and unlike shares, the value of the FD doesn’t depreciate. The amount you get on maturity is always more than your invested amount, which might not necessarily be the case with stock market investments. But what investors fail to realise is that in most cases, FD returns are less than inflation rate. This means that, in reality, FDs do not generate a profit; instead, you may experience a loss in real terms. This is why it's important to calculate FD returns using a fixed deposit calculator to evaluate and decide if FDs really aid in wealth creation.
Formula to calculate FD returns =P ( 1 + r/n)nt - P
- P - stands for Principal amount
- r - for rate of interest per period
- n - for number of times the interest is compounded annually
- t - for overall tenor.
How to Use the m.Stock FD Calculator?
The m.Stock FD calculator is user-friendly, which makes the calculation hassle-free. You can use m.Stock’s completely free fixed deposit calculator in 3 steps.
Step1 Enter the amount you want to invest in FD.
Step2 Enter the period of investment in years or months.
Step3 Enter the interest rate on your FD.
An Example to Understand FD Calculator
Let’s say you invested ₹1,00,000 at 6% per annum for 5 years in a bank FD. The future value of your FD after
5 years will be ₹1,33,823.
100000 x ( 1+ 0.06/12)12 x 5
While the formula might seem complicated, there is a simpler way to calculate your FD returns using m.Stock’s fixed deposit calculator.
FAQs on Fixed Deposit Calculator
You will just have to enter the investment amount, interest rate, and tenor and the calculator will display the maturity value of your FD.
Yes, the m.Stock FD calculator is completely free to use.
Corporate fixed deposits are deposits which are maintained (opened) with corporations or companies. They carry higher risk compared to bank FDs but also offer higher interest rates.