# FD Calculator vs Manual Calculations: Which is Right for You?

If you have decided to invest your money into a Fixed Deposit, one of the most important steps is to calculate your returns using an FD interest calculator online. This step is essential as it helps you understand the different scenarios and get the best return on your investment.

Just by inputting your principal amount, tenure of investment, interest rate, and interest payout frequency, you can assess how much your return will be. This is quick and provides accurate results so you can make informed decisions on your investment. But what if you want to make the calculations manually?

## What is a Fixed Deposit?

A fixed deposit is a type of one-time investment provided by banks and NBFCs which allows you to earn a higher interest rate than just storing money in your savings account. This rate is even higher for senior citizens as they receive 0.25-0.75% higher interest rates.

This type of investment is considered the safest as it is unaffected by market fluctuations. It provides assured returns, which you know of from the time of investment. This makes it the most popular form of investment in mostly risk-averse Indians.

## How to calculate FD interest rate manually?

There are two formulas to calculate the interest rate of fixed deposits.

Simple interest

In the case of simple interest, you don’t reinvest the interest you receive periodically.

The formula for simple interest FD is M = P + (P x R x T/100).

Where M is the maturity amount, P is the Principal sum you deposit, R is the rate of interest per annum, and T is the tenure of the investment in years.

Compound interest

For compound interest, though, you would reinvest the interest you receive.

For compound interest, the formula is M= P + P {(1 + I/100) T – 1}.

Where M is the maturity amount, P is the Principal sum you deposit, I is the rate of interest per period, and T is the tenure of the investment in years.

## How to calculate the FD interest rate online?

Calculating your FD’s interest online takes seconds using a Fixed Deposit calculator. You only need to fill in the principal amount, tenure of investment, interest rate, and interest payout frequency to see how much your return will be. This can help you to save time and better plan financially, using minimal effort.

Earlier this year, I wanted to invest in an FD but was concerned about how to go about it in a proper way. So I looked into it a lot and finally found Bajaj Finserv. I was blown away by how user-friendly it was and how quickly and concisely it allowed me to solve all of my questions and doubts as well as make an informed decision on my investment.

These are the steps I used to find the calculator:

1. Download the Bajaj Finserv app from the App Store or Play Store.
3. On the home page, tap three bars on the top left for Android and the top right for iOS.
4. Here, you’ll see ‘Calculators & Buying Guides.’
5. Go to ‘Deposits Calculators’
6. Choose ‘Fixed Deposit Interest Calculator.’
7. Fill in the required details
8. Experiment as per your requirement.

## Conclusion

Following these steps, you can calculate your FD interest returns manually and online. For most people, using online or app-based Fixed Deposit calculators like the one provided by Bajaj Finserv can help you make informed decisions for your financial future with accurate results in seconds, especially when an online FD calculator allows you to experiment and see the best option for you to get the best returns.