Fixed Deposit Calculator
Calculate guaranteed FD maturity value using compound interest for USA, UK & India.
What Is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a low-risk investment option offered by banks and financial institutions where an individual deposits a lump sum amount for a fixed tenure at a pre-decided interest rate. Unlike market-linked investments, fixed deposits provide guaranteed returns, which makes them one of the safest and most reliable saving instruments available today.
Fixed deposits are extremely popular in the United States, United Kingdom, and India. In the US and UK, they are often referred to as term deposits or time deposits. Investors prefer FDs because the returns are not influenced by stock market volatility, interest rate uncertainty, or economic fluctuations.
When you invest in an FD, your money is locked for a chosen duration ranging from a few months to several years. During this period, the bank pays interest at a fixed rate, ensuring predictable and stable growth of your savings. This makes fixed deposits ideal for short-term goals, emergency funds, and capital protection.
How Fixed Deposit Investment Works
The interest earned on a fixed deposit is calculated using compound interest in most cases. Banks generally compound interest quarterly, although some institutions may use monthly or annual compounding depending on the product. Compounding allows interest to be added back to the principal at regular intervals, enabling your money to grow faster over time.
The longer the investment tenure, the greater the benefit of compounding. Investors who stay invested for multiple years typically earn significantly higher maturity values compared to short-term deposits.
Fixed Deposit Calculation Formula
Maturity Value = P × (1 + r / n)^(n × t)
In this formula, P represents the principal or deposit amount, r is the annual interest rate, n is the compounding frequency, and t is the tenure in years. This FD calculator uses quarterly compounding, which is the most common method used by banks across India as well as internationally.
Benefits of Fixed Deposit Investment
- Guaranteed and predictable returns
- No exposure to stock market risk
- Suitable for conservative and first-time investors
- Flexible tenure options ranging from months to years
- Loan or overdraft facility available against FD
- Ideal for retirement and capital preservation
In countries like the US and UK, fixed deposits are often used to park surplus funds safely while earning steady interest. In India, FDs remain one of the most trusted investment options due to their safety and guaranteed maturity value.
Fixed deposits are best suited for investors who prioritize safety, stability, and assured growth over high-risk, high-return investments. Use this FD calculator to estimate your maturity amount, total interest earned, and overall returns before making an investment decision.