Term Deposit Calculator – Estimate Your Savings

What is a Term Deposit?

A Term Deposit, also known as a fixed deposit, is a financial product where you deposit money with a bank or financial institution for a fixed period at a predetermined interest rate. Term deposits typically offer higher interest rates than regular savings accounts because the money is locked in for a specific term. At the end of the term, you receive the principal amount along with the interest earned. These are considered a safe and low-risk investment option suitable for individuals looking for guaranteed returns.

How to Use the Term Deposit Calculator

This simple calculator allows you to estimate your total savings and interest earned from a term deposit. Follow these steps:

• Step One: Enter the amount you plan to deposit as the “Principal Amount.” This is the initial investment in dollars.
• Step Two: Input the “Annual Interest Rate” offered by your financial institution. Enter it as a percentage (e.g., 5 for 5%).
• Step Three: Specify the “Term Length” in years. Use decimal values for partial years (e.g., 1.5 for 18 months).
• Step Four: Select the “Compounding Frequency” from the dropdown. You can choose Annual, Semi-Annual, Quarterly, or Monthly compounding.
• Step Five: Hit the “Calculate” button, and the results will display the maturity value of your deposit. Additionally, it’ll calculate the total interest earned and explain the formula used.

This tool supports both short-term and long-term calculations, helping you make informed saving decisions by predicting future returns.