HDFC Bank FD Calculator 2023

The interest and maturity value on fixed deposits can be calculated using the simple interest method as well as the compound interest method.

Let’s first look at the calculation via the simple interest method:

Using the simple interest method, let’s assume you invested ₹1,00,000 in a fixed deposit for 5 years at an interest rate of 7% per annum.

Here’s how you can calculate the interest and maturity value:

Simple Interest = (P × R × T) / 100

Where P = principal amount (₹1,00,000 in this case), R = rate of interest per annum (7% in this case) and T = time in years (5 years in this case)

Substituting the values, we get:

Simple Interest = (1,00,000 × 7 × 5) / 100

Simple Interest = ₹35,000

Now let’s calculate maturity value.

Maturity Value = P + I

Substituting the values, we get:

Maturity Value = ₹1,00,000 + ₹35,000 = ₹1,35,000

Now, let’s look at the interest and maturity value calculation on fixed deposits via the compound interest method. The formula is as follows –

A= P * (1 + r/n)^(n*t)

Where, A = Maturity amount, P = Principal amount invested, r = Annual interest rate, n = Number of times interest is compounded per year and t = Time of investment in years

Let’s take an example to understand this better.

Principal (P) =  ₹1,00,000, Annual rate (R) = 7%, Compound (n) = Semi-annually, Time in years = 5 years

Substituting the values in the above formula, we get:

A or Maturity Amount = 100,000 * (1 + 0.07/2)^(2*5) = ₹141,059

While the interest earned on the fixed deposit can be calculated as follows:

Interest = Maturity value – Principal amount

I = ₹141,059 – ₹1,00,000 = ₹41,059