Fixed deposits, recurring deposits, and PPF are counted among the most favored investment options. They are suitable financial tools for risk-averse investors as they are not market-linked and thereby offer risk-free returns.

Nonetheless, each of these investment options come with a different rate of interest and follows a different method of calculating them.

The following highlights the simplest methods of calculating the maturity value of a fixed deposit, a recurring deposit, and a PPF.

## How to calculate the maturity value of an FD?

A fixed deposit scheme is one of the most preferred investment options for both young and risk-averse investors.

In such a scheme, individuals invest a sum of money into their fixed deposit account for a specific period. Through the investment period, the principal amount of the deposit accrues interest at a pre-fixed rate. Such deposit schemes can either be cumulative or non-cumulative.

To find the maturity value of an FD account, individuals need to use an FD interest calculator. The said calculator enables fixed deposit account holders to calculate the interest amount they would accrue through their FD.

Different financial institutions offer different FD rates on their respective FD schemes. Individuals must make it a point to weigh the profitability of such schemes by comparing their maturity value and interest amount. The best way to do so easily and accurately is by using a fixed deposit calculator.

An FD interest calculator uses the compound interest formula to show accurate results.

The maturity value of a fixed deposit scheme is calculated after taking into consideration factors like –

- Principal amount.
- Investment tenor.
- Type of deposit account.
- Rate of interest.
- Frequency of compounding interest.

Investors can use fixed deposit calculator reputed financial institutions like Bajaj Finance. To find out the maturity value of their deposit scheme.

## How to calculate the maturity value of an RD?

Typically, a recurring deposit scheme is a term deposit extended by financial institutions, wherein, investors deposit a fixed amount of funds at regular intervals. The principal amount of such accounts generates returns in the form of interest. The rate of interest is generally similar to that of the FD rates.

To obtain the accurate maturity value of an RD account, individuals have to input specific details into the RD calculator –

- Investment amount.
- Investment tenor.
- The annual rate of interest.

An RD calculator also uses the compounding interest formula to calculate the maturity value of a recurring deposit account.

## How to calculate the maturity value of a PPF?

Being a tax-saving investment option, PPF is considered to be one of the best long-term schemes you should invest in to plan your post-retirement life. The said scheme was launched to encourage individuals to save. Individuals who invest in PPF are entitled to tax benefits under section 80C. Also, the interest generated and the sum accrued at maturity are exempted from taxation.

To avail a better idea of the maturity value and estimated interest amount, individuals can use a PFF calculator.

An effective PPF calculator is a financial tool that enables users to obtain information on their investment.

For instance, they can calculate the interest amount they would earn on their investment.

Similarly, a PPF interest calculator also helps to obtain and adjust calculations as per the prevailing rates of interest.

The following is taken into consideration to calculate the maturity value of a PPF and its interest –

- Type of deposit; for instance, a fixed amount or variable amount.
- Principal amount per annum.

Notably, the rate of interest take into consideration for calculations would be the one prevailing in a given financial year.

Both FD and RD are attractive investment options, while a PPF account is deemed suitable for post-retirement planning.

To ensure investment your investment endeavor is more profitable pick the right NBFC for a fixed deposit or a recurring deposit.

Similarly, by using an effective calculator like Bajaj Finance’s FD interest calculator, individuals would be able to decide the most suitable investment option. Also, they would be able to calculate the accurate maturity value and estimated interest amount of their respective account/s effortlessly.

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