# How to use FD Interest Rates Calculator to know Maturity Amount? FD Interest Rates Calculator

Fixed Deposit is one popular method to save money in India. FD is a safe investment that provides us good returns and is very easy to open. It offers higher rates of interest compared to a savings account.

In an FD, you put a lump sum amount in a bank or non-financial institution for a fixed period (tenure) at a specific rate of interest. After the end of the tenure, you procure the amount you have invested plus compound interest. Fixed Deposits are also known as term/time deposits or bonds.

Generally, you cannot withdraw an FD before maturity (tenure), but you can break it on your wish and bear minimal charges or penalties.

Fixed Deposits tenure and interest rates

The period for which you lock your money or invest your money is known as tenure. You can avail of a tenure varying from 7 days to 10 years. Every bank and financial institute offer different tenure packages. The fixed deposits rate or interest rate of every bank is different. The interest rate that you receive on the invested money depends upon the tenure or duration of the deposit. The longer the lock period, the higher the rate of interest offered.

How to calculate the Maturity value of a Fixed Deposit?

The maturity amount or value is the total amount payable to an investor at the end of the time, deposit, or bond (maturity date). To calculate the maturity value for the savings which are made by the depositor, we must sum up all of the compounding interest which they have received over the period to the primary or the principal amount invested.

The formula to calculate the maturity value is as follows:

MV = P * (1 + r )n

Where,

MV – Maturity value

P- Principal amount

r- Rate of Interest

n- number of compounding intervals since the date of

deposit till the date of maturity

The given formula is a bit difficult to use as it’s complex, and many errors occur while doing a manual calculation. Due to misinterpretations of the maturity value in manual counting, many people have now resolved to use the online Fixed deposit calculators available all over the web. These calculators, besides interest rates, also calculate the maturity value.

How to calculate the Maturity amount through the FD calculator?

1. At first, you need to visit an FD calculating page then choose the customer type.

2. Later, select the type of FD you want from the following options i.e., cumulative (interest is compounded each quarter or year and paid at maturity) and non-cumulative (interest is rewarded monthly, quarterly, half-yearly, or annually).

3. Then input the amount of your principal and tenure and click on the calculate button.

4. After completing the procedure, the page will show interest amount earned on the mentioned principal amount for tenure and also the total maturity of your fixed deposit.

These are certain steps to use the online FD calculator. When you compare online calculators with manual calculations, you understand the accuracy that the online calculators provide. As they are machinery calculations, they are performed quickly and are completely error-free. These calculators are handy and easy to use. Also, they provide us with a calculation for both types of FDs like cumulative and non-cumulative. The minimum amount of opening an FD varies from bank to bank and different financial institutions. You could start investing with a low amount of 5000 rupees and even up to Rs. 10 crores or more. To know more about fixed deposit rates and maturity values on the different principal amounts and different tenure, you must use the online FD calculator.

A lot of people have now started investing in fixed deposits, especially salaried employees who want to plan for a safe future. They invest in FDs because it has various benefits as follows:

### Tax benefits

FDs fall under exempt-tax-exempt category due to section 80C of the Income Tax Act,1961.

Risk-free investment

These are a safe investment which provides us assured returns, unlike shares.

### Liquidity

FDs are a liquid asset that you can easily convert into cash.

### Encourages Savings

As a large sum of money is locked away for a longer time here. Hence it inculcates the habit of saving.

So, whenever investing do not forget to look up the maturity value on the online calculator to manage and regulate your future expenses. So, a fixed deposit is the best option for you if you want to invest money for your loved one. Apply now for fixed deposit at higher interest rate with PNB Housing Finance Ltd. By analysing the interest rate to get the best income monthly without any hassle you will get door step service. With CRISIL rating FAA+/Negative you will assure that you money is safe and secure. Apply Now without any hassle.