The interest earned is the actual return of your Fixed Deposit. The rate of interest on FD and the frequency of interest define the amount of return on your FD investment. Most FDs pay a compound interest.
Following factors affect the interest amount:
-> Deposit or principal amount: Higher deposit amount means higher interest.
-> Deposit tenor: A longer tenor will result in higher interest.
-> Rate of interest: Higher percentage of interest rate means higher interest amount.
-> Type of deposit (Cumulative or Non-Cumulative): Cumulative FDs give better interest.
-> Frequency of interest : (Monthly/quarterly/half-yearly/ annually): Higher frequency can decrease the interest amount.
-> Type of customer (Senior citizen, new customer, and existing customer): Senior Citizens and existing customers get additional interest rate over the regular customers.
-> You can use the FD Online Calculator and enter all the above mentioned details to calculate your FD’s interest amount. The calculator automatically gives you the interest calculation without any manual work.