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A fixed deposit scheme is a secure investment option that is offered by banks and non-banking finance companies. Its interest rate is predetermined and a lump sum amount is invested for a particular tenor which is also fixed. 

Therefore, the calculation of FD interest and maturity amount is possible even before you invest your savings in an FD plan.


How to calculate the fixed deposit interest & maturity amount?


You can calculate the fixed deposit interest and maturity amount in two ways. The first method is manual and the second method is by using an FD calculator. 


The formula that is used for manual calculation is given below:


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




A refers to your returns i.e. final maturity value


P is the deposited amount or principal


r refers to the rate of interest


t is the FD tenor


n refers to the frequency of compounded interest


However, this method can be cumbersome and you might make an error while calculating the values. To make it simple and effortless for investors, many financiers have started providing an FD calculator on their portal.


An FD interest rates calculator is an online tool that calculates the interest and maturity amount that you will be getting upon completion of the FD tenor.  


For that, you just have to feed some values like amount and tenor and the calculator will do the rest of the task by itself. 


With some calculators such as Bajaj Finance FD calculator, it is also mandatory to choose your customer type and type of FD (cumulative or non-cumulative) before entering these values as the interest rate varies as per the category and FD type you select. 

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Why use an FD calculator?

Finding the maturity amount is a time-consuming task and is somewhat complicated as well. By using an FD calculator, you can find it without any hassles. 


  • With the help of an FD calculator, you can compare and analyze the FD plans of various banks and finance companies based on the interest rate, tenors, and other features. This will enable you to make a smarter decision while selecting an FD scheme.


  • If you have a specific financial goal in mind, this calculator might help you reach it by giving an understanding of the required investment amount and tenor. 


The interest gained by your deposits over a tenor is substantial only when the FD interest rate is high. The bank FD plans are not quite overwhelming especially after the banks reduced their FD rates owing to the repo rate cuts implemented this year by RBI.


To ensure better returns at maturity you can invest in a tax saving FD as you can claim a deduction up to Rs. 1.5 lakhs as per Section 80C of the Income Tax Act. However, the better option would be to invest in company FDs that provide outright higher FD rates. 


Some NBFCS like Bajaj Finance are still providing high-interest rates on their FD schemes. You can lock-in your investments up to 7.35% FD rate and you also get the option of choosing a flexible tenor from 12 to 60 months as per your preferences.


Also, you no longer have to break your FD as you can apply for a loan by using your FD as collateral. You will be eligible for a 0.10% extra FD rate on using the online procedure for investing in FD via an online FD form. 

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Moreover, Bajaj Finance FD secures your investments as it has received high ratings for its stability by credit rating organizations like CRISIL and ICRA.


A fixed deposit also known as a term deposit is a risk-free option as it provides stable returns to the investors. Since the interest rates are fixed, you can use a term deposit calculator to find the maturity amount and interest you will receive after completion of the fixed deposit tenor. With the help of this calculator, you can compare the FD plans offered by different financiers and choose an FD plan as per your requirements. The bank FD rates are not enough to earn substantial returns as they have been reduced recently. Therefore, you can invest in Bajaj Finance FDs that offer higher interest rates up to 7.35%. 

Shabbir Ahmad

Shabbir Ahmad is a freelance enthusiastic blogger & SEO expert. He is the founder of Shifted Magazine & Shifted News. He contributes to many authority blogs including porch, hackernoon & techcrunch.