A Fixed Deposit (FD), also known as a Term Deposit, is a popular and safe investment instrument offered by banks and financial institutions. It involves investing a lump sum of money for a predetermined period at a fixed interest rate. At the end of the tenure, you receive both your principal amount and the accumulated interest. This FD Calculator helps you accurately determine the maturity value of your investment, allowing you to plan your finances effectively. To use the calculator, you need to provide four key details. First, enter the 'Principal Amount', which is the lump sum you are investing. Second, input the 'Annual Interest Rate' that the bank is offering for the FD. Third, specify the 'Term' of the deposit in years. A crucial fourth input is the 'Compounding Frequency'. This determines how often the interest is calculated and added back to your principal within the year. Common options include Annually, Semi-Annually, Quarterly, or Monthly. The more frequently the interest is compounded, the higher your final maturity amount will be, as you start earning interest on your interest sooner. After filling in all the fields, click 'Calculate'. The tool will compute and display the 'Maturity Value' (the total amount you'll receive at the end of the term) and also break down this amount into your initial investment and the 'Total Interest' earned. This is perfect for comparing different FD offers from various banks.