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# FD Calculator

Total Value₹1,38,042
Total Investment
Interest Rate
YrMo
Time Period
Total Value₹1,38,042
Est. Returns₹38,042
Invested Amount₹1,00,000
Total Value₹1,38,042

Banks offer fixed deposits as an investment option to their customers. A user is required to invest a specific amount for a set period of time. The tenure varies from bank to bank and can range from 7 days to 10 years. Meanwhile, Paytm Payments Banks allows users to create and redeem fixed deposit amounts at any time. When banks charge a user a penalty for withdrawing the fixed deposit amount before maturity, Paytm Payments Bank does not.

The Paytm FD calculator will assist a user in calculating the interest he or she will receive upon maturity of a fixed deposit. The calculator is simple to use and quickly computes the value.

## What is Paytm FD calculator?

When a user invests in a fixed deposit, the amount deposited earns interest at the prevailing FD interest rate. The interest compounded over time assists the user in growing his or her savings. Calculating how much interest will be compounded annually or after maturity is a time-consuming and labour-intensive task. With the Paytm FD calculator, a user can estimate the interest gains and the total FD amount after maturity.

A Paytm FD calculator is a digital tool that helps a user determine how much interest he or she will receive after the FD matures. It does not require a user to have a lot of technical information to calculate the interest received on FD upon maturity.

## What are the types of Fixed deposits?

There are two types of FDs, i.e- cumulative and non-cumulative FDs.

Type of fixed depositsExplanation
Cumulative Fixed Deposit
• Interest is only paid at maturity.
• Interval based interest is not available to users.
• Higher interest rate
• Suitable for those who do not want to receive regular interest payments.
• The duration of FDs ranges from one to five years.
Non Cumulative Fixed Deposit
• Interest is paid on a regular basis.
• The tenure of FDs ranges from one to five years.
• In the case of a regular interest payment, the amount payable at maturity will be less.
• Suitable for those who need a steady source of income in the form of interest.
Senior citizen FD
• People over the age of 60 are eligible.
• Offers a higher rate of interest than other FDs.
• Flexible tenure

Here's why a fixed deposit with Paytm Payments Bank is a good idea:

• Paytm pays 5.5 % on regular fixed deposits and 6 % on senior citizens' FDs, both of which are higher than rates offered by many other banks in the country
• There are no penalties for withdrawing money from a fixed deposit before it matures
• Paytm allows partial withdrawals from fixed deposits
• To begin one, a fixed deposit of Rs 100 is all that is required
• Paytm provides the option of auto-creating fixed deposits when the amount in your Paytm savings account exceeds a user-specified limit
• Paytm fixed deposits can be created and/or dissolved at any time and from any location with a single click

## Fixed deposit calculation formula

The bank fixed deposit interest rate is predetermined at the time of investment. Furthermore, it remains constant throughout the investment period. A few factors that influence fixed deposit interest rates are as follows:

1. To begin, the duration of the investment is a factor that influences the interest rate; the longer the investment, the higher the interest rate
2. A senior citizen's interest rate is higher, ranging from 0.25% to 0.75% higher than the normal rate of interest. The age at which a person is considered a senior citizen varies from bank to bank. Few of them consider 55 years whereas others consider 60 years
3. The current economic situation plays an important role. Banks and financial institutions consider economic conditions such as the repo rate and the inflation rate to determine interest rates
4. There are two methods for calculating the interest on a fixed deposit: simple interest and compound interest

## Simple interest on fixed deposit

Simple interest refers to the interest earned on the principal amount invested at the predetermined interest rate during the course of investment.

### Formula for calculation

Simple Interest = (P * R * T)/ 100
P- Principal amount invested
R- Rate of interest (%)
T- Tenure

Example:

Mr. Arun invested Rs 500,000 for 5 years at a 5% annual interest rate.
Simple Interest = (Rs 500,000 * 5 * 5 years)/ 100 = 125000
Principal amount invested is Rs 500,000
Rate of interest (%) is 5% per annum
The tenure of the investment made is 5 years
Maturity Value = Principal amount + Simple Interest
= Rs. 5,00,000 + 125000
= Rs. 625000

## Compound interest on fixed deposit

The interest earned on both the principal and the interest earned is known as compound interest. The number of periods (years) for which interest will be compounded and multiplied by the principal invested increases the interest rate.

### Formula for calculation

A = P (1+r/n) ^ (n * t)
A = Maturity Amount
P = Principal amount invested
r = Rate of Interest (in decimals)
n = number of compounding in a year
t = number of years

Example:

Mr. Arun made a 5-year investment of Rs 500,000 at a compounded annual interest rate of 5%.

Here,
Principal amount invested is Rs 500,000
Interest Rate is 5%
Number of compounding in a year is 4 i.e. 1 every quarter
Number of years of investment is 5 years
A = 5,00,000 (1+0.05/4) ^ (4*5)
A i.e. maturity amount = Rs 641018.62
Interest amount = Rs. 641018.62 – Rs 5,00,000 = Rs. 141018.62

## How do a Paytm FD calculator helps you?

You must use a calculator to determine whether the investment scheme meets your investment objectives. This way, you will not only make an informed decision, but you will also avoid disappointments and surprises.

• A fixed deposit calculator can assist you in comparing the various fixed deposits provided by various banks. Because each bank and NBFC offers a different interest rate, comparing them can help you optimise your investment
• You can use the calculator to determine which FD period provides your desired result

## What are the advantages of FD calculator?

The following are some of the benefits of using an FD calculator:

• Get an accurate result for the FD interest at the maturity date.
• The Paytm FD calculator is both secure and free.
• The maturity amounts of various banks can be compared.
• Calculate maturity amounts much faster than with a digital calculator or spreadsheet.

## FAQs

How do you compute the FD maturity amount?
A user must first open the Paytm FD calculator, and select the type of FD, the desired FD amount, tenure, and interest rate. The matured amount, as well as the interest, will be displayed on the screen automatically.
How quickly the Paytm FD calculator calculates the FD earned interest?
The Paytm FD calculator displays the query in seconds.
Can a Paytm FD calculator help you plan your finances?
Once you know how much money you will receive after the FD matures, you can decide whether to reinvest it or withdraw it for other purposes or financial planning.
What is the maximum and minimum amount that can be invested in a fixed deposit?
The maximum and minimum amounts that can be invested in a fixed deposit vary by bank. If an investor wants to invest more than Rs 1 crore, he can ask the bank for a customised interest rate.
What is the shortest period of time that one can invest in fixed deposits?
Customers can choose to invest their money for as little as 7 days and as long as 10 years.
Is it possible to use the Paytm FD calculator for free?
A Paytm FD calculator is free to use.
Is it possible to withdraw the FD amount before it matures?
Yes, if you need an emergency fund, you can withdraw the money after paying a penalty.
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