A fixed deposit is an investment that requires a lump sum amount deposit for a specific tenure. Your amount remains locked in for a fixed tenure so that you can avail the interest on the deposit. Below is a guide to fixed deposit and how it is calculated.
Fixed Deposit Investment
Are you looking to make a stable income? You can get this benefit by investing your money into a fixed deposit account. The investment return remains fixed, making you a steady source of income. Let us look at the pros and cons of depositing your funds in a fixed deposit account.
If you are looking for the best fixed deposit scheme, Muthoot Capital offers monthly, quarterly and annual interest plans and maturity plans offering interest rates as high as 8.38%. You may visit our nearest branch or connect with us online and we will guide you through our offers.
How is Fixed Deposit Calculated?
The formula to calculate the simple interest on a fixed deposit is
If you wish to calculate the compound interest on your fixed deposit, you can use the below formula.
Where P = invested amount, R = rate of interest, and T = Tenure of the fixed deposit.
Alternatively, you can use our FD interest rates calculator to compute your returns.
A fixed deposit is a safe investment vehicle for investors looking for risk-free investments and stable returns.