# FD CALCULATOR

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**Future Value: **

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**Total Invested: **

**Total Returns: **

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## How to Calculate FD?

Toolerz FD Calculator is a Free Online Tool that helps you calculate your returns on your Fixed Deposits in any Bank like SBI, HDFC, Post Office, ICICI, PNB, etc.,

Making precise calculations of the maturity value of an FD account is tiresome work but the FD calculator tools make your work much simpler than ever, and, in a split second the calculator provides you with a solution.

A fixed deposit calculator is a well-designed software tool applicable to compare multiple banks at a time.

You will have to select the bank enter the details in the blanks and wait for the solution. Since each bank has its specific interest rates on FDs of different tenures, the maturity value differs. Thus making the FD tool a good comparison among different banks.

You are free to select the tenure from a few days to several years and get the corresponding maturity values most accurately.

These Fixed deposit calculators perform multiple activities like comparing the various public sector/private sector/rural scheduled banks.

FD calculators do help you in planning your financial objectives better in an error-free zone.

### FD Calculator SBI

The image provided above is a prototype of the **SBI FD calculator** and has been selected by us for your better understanding. It is used to make calculations on fixed deposits.

The FD calculator contains several input variables such as bank name, date of opening of the fixed deposit, amount of deposit, frequency of payout, the deposit term, and rate of interest.

You will have to fill in with details as per your choice. Make a check of the input details and then click the calculate button.

The FD calculator will return the maturity value of the invested money and by changing the values of deposit term, deposit amount, frequency, and interest rate, you can obtain your desired maturity amount.

**How Does an FD Calculator Help You?**

FD calculators cannot calculate the amount of tax to be paid on your maturity value of the fixed deposits.

You can make a fixed deposit investment in a bank. In which, the banker issues a specific rate of interest for a specific period on the fixed deposit and you can collect the principal amount and the interest at the time of maturity.

But, how do the banks calculate your investment in the savings bank? Yes, they do integrate FD software calculating tools on the web pages to enable their clients to make the necessary calculations.

You too can utilize the FD calculators provided by the banks to calculate the estimated maturity return based on variables like invested money, tenure of investment, and the rate of interest.

These FD calculators are custom-made and they will enable you to make the entries of the variable with ease.

These calculating software tools use formulas in the calculators to deduce the maturity value of FDs and mathematical experts say two types of formulas are used that are based on simple interest, and compound interest.

However, for the interest of the readers, we have presented the formula used in calculating the maturity value the procedure for using FD calculators, and how helpful these FD calculators can be.

**Simple Interest FD Calculators:**

Simple Interest FD calculators adopt a specific formula that helps you in making the calculations easier on the online FD calculator.

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

P,r,t are the variables that keep changing as per your preferences.

P is the principal amount ( the invested money in the bank)

r is the annual rate of interest.

t is the tenure ( period of the investment)

In case you make a deposit of INR 2,00,000 for a period of 5 years at an interest rate of 10% then, you can calculate the maturity value by substituting the value of these variables in the formula.

M = 200,000 + (2,00,000 x 10 x 5/100)

= INR 300,000.

**Compound Interest FD Calculators:**

You can use Compound Interest FD calculators and perform computations in a very short time.

For the Compound Interest Calculators, the FD calculators will use the formula:

**M = P + P { ( 1 + i/100) t - 1}**

P, i, t are the variables that keep changing as per your choice.

p is the principal amount

i is the rate of interest.

t is the tenure ( period of investment).

For the same above example,

M = 2,00,000 { ( 1 + 10/100)5-1}

= 1,08,000.00

**Why do FD Interest Rates Change Frequently?**

A bank keeps on changing its FD rates for several reasons:

The central bank ( RBI) makes monetary policy decisions and this results in quick adjustments of the interest rates on the fixed deposit. Thus, the maturity value of the FDs do change and that may not match your financial objectives.

Banks are one of the biggest financial institutions and there is a constant pressure to maintain their position in the financial markets and therefore these banks keep changing interest rates.

You may prefer an investment tenure that may not yield your desired maturity value for your investments. Hence, you will have to go for high interest rates usually you obtain in a long term investment.

Your investment amount can also affect the rate of interest of a FD, for higher investments in FDs the banker will prefer to pay more return rate just to retain the customer.

**What Would Happen if an FD is Broken?**

The basic principle is to retain the FD until it completes the maturity period your maturity value will attract a loss of interest and a penalty shall be applicable.

**FD Deposits ( Term Deposit Scheme): Tax Implications**

For fixed deposits, the tax is deducted at the source, and it is laid on the interest earned in the financial year.

A customer can earn income from a Fixed Deposit in form of interest up to INR 40,000.00 and for a fixed deposit invested by a Hindu undivided family, an interest earned up to INR 50,000.00 will not be taxed.

The bank TDS will deduct 10% on the interest before credited to the account.

You must give a self-declaration statement to the banker to avoid the tax deduction, and this is usually done by submitting the Form 15G, and Form 15H.