A fixed deposit (FD) is a type of term investment offered by several banks and NBFCs. These deposits typically offer a higher rate of interest, subject to certain terms and conditions. The amount you deposit in an FD is locked for a predetermined period which can vary between 7 days and 10 years. The interest rate for FDs is fixed at the time of opening the deposit and independent of any fluctuations in the market. Some financial institutions even allow one to break their FDs prematurely on paying a certain penalty fee. Using an FD interest calculator makes it easier for the investor to calculate their investments beforehand and decide. As opposed to using a complicated FD calculation formulae, you can alternatively use a FD calculator or FD interest calculator to know your returns beforehand. The only thing to be done for this is to input your desired investment and tenure.