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What is Maturity amount in FD & How to calculate FD maturity amount?

Evaluation of your investment portfolio helps you select the right investment options that can bring maximum returns. However, investment of one type cannot fulfil all the investment goals.

In such cases, it is essential that you choose to invest in an instrument that helps maximise wealth through returns as well as time-effectiveness. FD or fixed deposit is one such instrument. It carries no risk of loss as against other investment options, and also brings higher returns when compared to other risk-free wealth maximisation methods.

A fixed deposit comes with a maturity amount that you can withdraw at the end of the tenor. With high rates of return, it comes off as a unique investment option whose maturity amount can be calculated with an FD maturity calculator. Know in detail about FD maturity amount below.

What is the maturity amount in FD?
As the name suggests, fixed deposit is an instrument where you need to invest a fixed amount for a predetermined period. Financial institutions offer FD investment schemes at varying rates of interest compounded on a monthly, quarterly, half-yearly or yearly basis.

The maturity amount in fixed deposit is the sum you deposited plus the compound interest earned on it throughout the tenor.

What is deposit rate in FD?
Deposit rate is the rate at which you earn interest on your amount throughout your fixed deposit tenor. The compounding of your deposit as per the applicable rates allows you to grow your savings without any risk.

So, now when you know what is deposit rate, check out how you can calculate the maturity amount on your FD. Compare the returns with other risk-free investment schemes before investing.

Calculation of fixed deposit maturity amount
Maturity calculation on fixed deposit comprises the compounding of your interest and adding it to the fixed deposit amount as per the calculation method you have chosen, i.e., cumulative or non-cumulative. This amount also depends on the type of customer you are. Usually, fixed deposits for senior citizens attract higher rates of interest as against a regular customer. So, you must check where to invest for higher returns on your fixed deposit. This amount also depends on the type of customer you are Usually.

FD maturity calculator comes off as an efficient tool to calculate this amount. Check the following steps to calculate the maturity amount on your FD.

1. Select the type of customer you are, i.e., a senior citizen or a regular customer. Along with higher returns for senior citizens, NBFCs like Bajaj Finserv also offer special rates of interest for their employees.

2. Choose the fixed deposit type you want to invest in, cumulative or non-cumulative.

3. Input the amount you want to invest in fixed deposit.

4. Select the tenor you want to continue your fixed deposit for. Since FD tenor affects its interest rate, you must choose it wisely to gain maximum returns.

Once you enter all these details, the FD maturity calculator will show the total interest you will earn at the end of your investment tenor and the maturity amount you will receive.

Fixed deposits come with a lock-in period within which withdrawal of the fixed amount is not allowed. However, if you need this money immediately, you can opt to withdraw this amount, including the principal and interest earned, against a nominal charge.

With the knowledge of the deposit rate and how to calculate your FD maturity amount, you can now choose a suitable deposit amount and go for the investment. Make sure you use the FD maturity calculator and determine this amount beforehand. It will help plan your investment returns for the future.

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