How to Calculate the Interest You’ll Earn on Your Fixed Deposit Amount
Fixed Deposits (FDs) are a popular and secure investment option that provides guaranteed returns over a specified period. Many investors prefer FDs because they offer a predictable income stream and are relatively low-risk. Calculating the interest you’ll earn on your FD is crucial for financial planning and making informed investment decisions. In this article, we’ll explain how to calculate FD interest, focusing on using the LIC Fixed Deposit App and understanding how to find the highest interest on FD.
Understanding Fixed Deposits
A Fixed Deposit is an investment where you deposit a lump sum amount with a bank or financial institution for a fixed tenure at a predetermined interest rate. The interest rate varies based on the tenure and the financial institution. At the end of the tenure, you receive the principal amount along with the accumulated interest.
Types of Fixed Deposit Interest
- Simple Interest (SI):
- Formula: SI =