**Find new FD calculator to calculate the simple or compound interest and maturity amount as per your tenure given, Check the new interest rates and get the final fixed deposit on the new FD calculator…**

In this ever-changing economy, it is evident that investments are to be made to ensure future profits for a better lifestyle later on, and adjusting to the same concept, in India millions of people have already invested in fixed deposits which have become one of the most beneficial and simplest forms of investment strategy for them.

We all know that there are various means of investment strategies out there but the reason fixed deposit stands out of all is due to the safety and the higher return rates being provided over the completion of the tenure that makes it so grand.

In this article, 99employee.com will be helping you understand what actually Fixed deposit means, how does it work, who can invest in it, and further discuss the importance of the FD calculator and more information about the same that can help you make your financial decisions.

## What is FD or Fixed Deposit Meaning?

Fixed deposit is pretty well known as one of the finest investment options because it provides the most safety to the money you invest and brings in higher interest rates as well. It is also called a term deposit because you will have to invest a huge sum of money for a period or tenure through which interest will be provided to you.

So, the interest that is earned over the invested money will get compounded over time to time that will bring you more value to the maturity level after the tenure is completed.

In simple words, a huge sum of money will be invested by individuals to banks or financial institutions, and then the amount invested will be locked for the selected tenure of time, while the interest rates are compounded from time to time.

## FD Calculator Formula – How does FD Calculator work

I know the investment is a big decision but at the same time, it is more complex to determine how it might benefit you. And that is why you should use an FD calculator that will help you save time in understanding complex calculations to find your answer about the proper returns and investment strategy.

So basically there are two types of fixed deposit calculators which are Simple interest FD and compound interest FD, and now we will be discussing both the types of calculators below.

## Simple Interest FD Calculator

This calculator works on basically 3 major components such as the principal amount that you invested which is P, rate of interest provided by the banks or financial institutions which is r and t is the tenure.

**M = P + (P x r x t/100)**

## Compound Interest FD Calculator

In this calculator, the factors it depends on are principal amount invested which is p, interest rate which is i and then tenure of the investment which is t.

**M= P + P {(1 + i/100) t – 1}**

But before we continue off, you should learn more about the advantages provided by using any of the above-mentioned FD calculators.

- Using the above formula, you will be able to determine and know exactly the fd maturity amount that you will receive by the end of your investment tenure
- You will be able to understand how interest rate will help grow your maturity level, that will help you to plan more wisely and invest properly
- You will be able to compare the maturity level from different banks and financial institutions providing you with options to invest in the best maturity level result

**What is FD Maturity Level – How does Fixed Deposit Maturity Amount works?**

Fixed deposit maturity level simply means the point at which you will receive the full interest rate with your investment after completion of your selected tenure. You will be able to calculate the maturity level easily with the fd calculator allowing you to know the amount to be received even before you start your investment. The FD deposit maturity level works on the factors mentioned below.

- Principal amount or the amount invested
- Interest rate from the banks or the financial institutions
- Tenure of the investment

**Is Fixed Deposit investment a good option?**

Yes, fixed deposit is considered to be a good investment opportunity in India because it allows you to constantly earn good and high-interest rates over the selected tenure once the money is invested, and at the same time, if the interest rates become low in the market, then it does not affect your already fixed deposit since it is already locked with the selected interest rate and tenure providing you with safety that the maturity level will be provided.

On the other hand, in India elderly and earning individuals with pensions and salaries can simply invest in FD for the future to reap more benefits later on through this investment opportunity, and finally, there is not much work and hassle required once the investment is made and all you need is to wait till the time the maturity level is reached.

**If the interest rates fluctuate, then will it affect fixed deposit?**

Fixed deposit means once you invest your money it will be locked for the selected tenure for the interest rate. But even though if the interest rate goes low or high then there is no change made to the fixed deposit already made, but you can create a new fixed deposit if you want to go with the new interest rates as mentioned below.

**Is tax applicable on fixed deposit?**

So, the interest rate that is earned through the FD falls under the tax bracket and is taxable where if you have TDS then you will have it deducted if the interest earned is more than the Rupees 5,000 range.

**Who can invest in fixed deposits?**

There is no such rule excluding anyone from investing in the fixed deposit but only residents of Indians are allowed to.

**Minimum and maximum deposits?**

In most all the banks and financial institutions, the minimum amount to be deposited is between Rupees 1,000 to 25,000. Whereas there is no limit to the maximum amount to be deposited and solely depends upon the individual.

Online Page for FD Calculator