See what a fixed deposit could be worth when it matures. Enter the amount, the yearly rate, how long you lock it in and how often interest is added, and the calculator shows the interest earned and the final value. You can also compare monthly, quarterly and yearly compounding.
A fixed deposit (also called a term deposit or FD) is money you leave with a bank for a set time at a set rate. In return you usually get a higher rate than an ordinary savings account. The interest is added to the deposit every period, and from then on it earns interest too.
Example. 10,000 at 6% a year, compounded every quarter for one year, grows to about 10,614 — roughly 614 of interest. The same deposit at simple interest would earn a flat 600.
With compound interest: the balance grows by a share of the yearly rate each period, and that interest then earns interest too. The formula is principal × (1 + rate ÷ periods) raised to the power of periods × years.
It is how often interest is added to the deposit: monthly, quarterly, half-yearly or yearly. At the same yearly rate, more frequent compounding gives a little more, because interest starts earning interest sooner. The difference is usually small.
Some deposits pay simple interest, where interest is only ever calculated on the original amount, not on the interest already earned. Turn it on to compare. For the same rate and term it gives a lower maturity value than compounding.
Treat it as a close estimate. Real banks may use daily counts, part-period rules, payout schedules, early-withdrawal penalties and tax on the interest, which this calculator does not model. Always check your bank's own figure before deciding.
The maturity value is the same as the amount you put in, and the interest is zero.
A calculator gives you one answer. A cashbook shows you the whole picture: write down cash in and cash out, see where the money goes in charts and on a calendar, and share a ledger with your family, team or friends.
This takes a few seconds.
TallyKnot