Learn about fixed deposit and how to find the maturity value of FD

1. Fixed Deposit

2. What is Fixed Deposit?
• A savings scheme provided by banks, where
the investors will gain a higher interest rate
untill the maturity period.
• It is also called as “Term deposit” or “time
deposit.

3. Why Fixed Deposit?
This may be one of the savings benefit provided
by banks, but the difference is that the
interest rates are higher than any other
savings account, which gains the user with
high maturity value at the end of the maturity
period.

4. What is Maturity Value?
• The amount of money that you receive
after the invested period of your initial
amount is called as maturity value.

5. How to Find Maturity Value in
FD?
The formula to calculate the maturity value is
Maturity Value = P x (1 + r/n)^nt
P = Principal Amount
r = Rate of Interest
t = Number of Period
n = Compounded Interest Frequency

6. How to Find Maturity Value
If you have invested Rs. 1,00,000 in a bank for 3
years with interest rate of 5 %, that is
compounded half yearly, then your maturity
value will be
= 100000 x (1 + (5/100)*2)2x3
= 115762.5

7. Compounding Frequency
While calculating maturity value, each
compounding fequency takes different values.
Annually = 1
Half Yearly = 2
Quarterly = 4
Monthly = 12
Simple Interest Based = 0

8. Interest Earned till Maturity
Value
The interest earned is the greatest benefit in the
fixed deposit savings.
To find the interest earned, use the formula
Interest Earned Amount = Maturity Value -
Principal Amount
Hence your interest earned will be 115762.5 –
100000 which is Rs. 15969.34

9. Growth Comparison

10. Fixed Deposit Calculation Online
If it is really a tuf task to perform the
calculations to find your maturity value,
there are even more online
fixed deposit calculator.
Just enter the values and a click will give
your savings benefits.