**What is FD (Fixed Deposit) ?**

**Fixed Deposit (FD)**, also known as a term deposit or time deposit, is a popular financial instrument offered by banks and other non banking financial institutions. It is a low-risk savings option where you deposit a lump sum amount for a fixed period at a predetermined interest rate. In return, the bank guarantees the safety of your principal amount and pays you interest periodically or at maturity. Fixed deposits are a conservative and secure way to save and grow your money.

Fixed deposit is famous among short term or low risk investors, however it has low yield and sometimes hardly beat inflation.

**Here’s a guide on how to use the Fixed Deposit Calculator: **

**Step 1: Open the Calculator**

- Visit our webpage where the FD calculator is available, you can find at the top of this post.

**Step 2: Enter Principal Amount**

- In the “Principal Amount (Rs.)” field, enter the initial amount you plan to invest in the Fixed Deposit. This is the amount of money you’re depositing in the FD.

**Step 3: Enter Rate of Interest**

- In the “Rate of Interest (%)” field, enter the annual interest rate provided by the bank or financial institution where you plan to invest your money.

**Step 4: Enter Tenure**

- In the “Tenure (years)” field, enter the number of years for which you intend to keep your money invested in the Fixed Deposit.

**Step 5: Select Compounding Frequency**

- Choose the compounding frequency from the “Compounding Frequency” dropdown. You can select one of the following options:
- Annually: Interest is compounded once a year.
- Semi-Annually: Interest is compounded twice a year.
- Quarterly: Interest is compounded four times a year.
- Monthly: Interest is compounded twelve times a year.

**Step 6: Calculate Maturity Amount**

- After entering all the required information, click the “Calculate” button. The calculator will process your inputs and calculate the maturity amount based on the principal amount, interest rate, tenure, and compounding frequency you specified.

**Step 7: View Results**

- The calculator will display the results in the “Results” section.
- “
**Maturity Amount**(Rs.)”: This is the total amount you will receive at the end of the investment period, including both the principal amount and interest earned. - “
**Gain**(Rs.)”: This is the profit you will make from your Fixed Deposit investment, which is the difference between the maturity amount and the principal amount.

- “

**Step 8: Analyze the Results**

- Review the calculated maturity amount and gain to make an informed decision about your Fixed Deposit investment. The gain represents the additional earnings you will receive on top of your initial investment.

Remember that the actual interest you earn may vary slightly depending on the compounding frequency and the specific terms and conditions of the bank or financial institution where you open your fixed deposit. Always verify the details with your chosen institution to ensure accuracy. Fixed deposits are considered a low-risk investment, making them a popular choice for individuals looking to grow their savings steadily while preserving the safety of their capital.