How is Fixed Deposit interest calculated?

Fixed Deposit (FD) is a reliable investment tool for preserving and growing savings. The rate of interest on your deposit depends on the tenor you choose, and the frequency of interest payouts.

The FD formula for calculation of interest is listed below:



  • A is maturity amount
  • P is principal amount
  • r is rate of interest
  • t is number of years
  • n is compounded interest frequency

For those looking to avoid the complexities of manual calculations, there is always an option to use the online FD Calculator that evaluates your returns within a few minutes.

How to use FD Calculator to calculate interest?

Using the FD calculator is very easy, and all you have to do, is to input the fixed deposit amount and tenor to calculate the amount receivable at maturity. It helps you calculate both – cumulative and non-cumulative payouts.

It is easy to use, and all you need to do is fill in details about:

  • Customer Type
  • Type of fixed deposit
  • Fixed deposit amount
  • Fixed deposit tenor

The interest amount along with the total amount will hence, be reflected. It helps you save the manual work, and you can determine the return on your investment in no time.

How to maximise the returns on your deposit?

To maximise the returns on your deposit, it is important to know the factors affecting your FD interest and amount, which have been listed below:

  • Deposit or principal amount: Higher deposit amount means higher interest.

  • Deposit tenor: Longer tenor results in higher interest.

  • Rate of interest: Higher percentage of interest rate yields greater interest amount.

  • Type of deposit (Cumulative or Non-Cumulative): Cumulative FDs give better interest.

  • Frequency of interest: Your interest can be compounded monthly, quarterly, half-yearly or annually with Bajaj Finance Fixed Deposits. However, frequent compounding of interest rates can decrease your interest amount.

  • Mode of investment: While senior citizens get an additional rate benefit of 0.25%, there is also an additional rate benefit of 0.10% for online investors, who are less than 60 years of age.

Based on your convenience, and the above factors, you can choose the tenors, payout frequencies, deposit types and mode of investment to grow your savings. You can choose to invest in a Bajaj Finance Fixed Deposit to get attractive rate of interest, which can enable you to maximise the returns on your deposit.

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