A fixed deposit is one of the smartest ways to grow your money. Especially at times when markets are volatile, investing in fixed deposits is a wise thing to do. However, when making any interest one needs to have an idea of how much return the investment will give you. In the case of an FD, you would want to know how much money you will receive when the FD matures.

Before calculating FD returns, one must understand that FDs provide guaranteed returns. Hence it is possible to know the exact returns a FD will deliver when it matures even at the time of investing. You can also use the FD returns calculator to determine monthly or periodic interest.

There are two ways to calculate FD returns.

The manual way

You can calculate the return on FDs by using a simple formula which is: M= P(1+r/n)^(nt)

Where P is the maturity amount, r is the rate of interest offered on the FD, n is the number of times the interest is compounded and t is the tenor. You can also use an Excel sheet to apply this formula and calculate your returns.

By using an FD returns calculator

However, not everyone is comfortable with manual calculations. The easier way to calculate FD returns is to use the FD returns calculator which is also known as the FD Calculator monthly interest tool. You can find it on the websites of various banks and NBFCs. The calculator comes with an easy-to-use interface and gives a customer quick and accurate information.

To use the FD returns calculator, you need to input the following information and the calculator helps you instantly calculate FD returns. The FD return calculator is thus an easy tool to find out your FD returns. It does not require you to have any knowledge of maths.

• Customer type whether you are an existing customer, senior citizen or Employee.
• Principal or deposit amount that you wish to deposit
• Frequency of compounding which refers to how many times a year the interest is calculated on the principal
• Nature of FD- cumulative or non-cumulative ( because the interest rate depends on the type chosen)
• Tenor- This refers to the duration for which the FD will earn interest

Once you put in these details, the FD returns calculator will display the interest earned for the entire tenor and also the total maturity amount of your fixed deposit. Hence, you can find your maturity amount in only a couple of minutes.

We have seen how you can easily calculate FD returns using an FD calculator. You can even open an online FD account from the comfort of your home. Thus, you can plan your FD investments better!