Fixed Deposit (FD) Calculator
A Fixed Deposit is a secure investment where you deposit a lump sum amount with a bank for a fixed tenure at an agreed interest rate. At the end of the tenure, you receive the principal amount along with the compound interest.
How is FD Interest Calculated?
Most banks calculate interest on a Quarterly Compounding basis. This means the interest you earn in the first 3 months is added to your principal, and in the next quarter, you earn interest on that increased amount.
Formula
A = P(1 + r/n)^(nt)
- A: Maturity Amount
- P: Principal Amount
- r: Rate of Interest (decimal)
- n: Frequency (4 for Quarterly)