MAM
How to Calculate Fixed Deposit Interest Rate
Fixed Deposits (FDs) are among the most popular ways to save and invest money. FDs offer better interest rates than savings accounts and keep your capital secure. Moreover, the interest earnings are predetermined based on the interest rates that the FD offers, which remain constant throughout the FD tenure. But how exactly is the interest on your FD calculated? Let us try and understand the FD interest calculation process in this article.
Fixed deposit interest rates
A fixed deposit allows you to deposit a specific amount of money for a fixed period with a bank. In return, the bank pays a specific rate of interest on your capital. The interest rates on FDs are generally higher than regular savings accounts. Banks set their FD interest rates based on several factors, including the Reserve Bank of India’s policies, the bank’s need for funds, and the overall economic conditions. Most banks offer higher interest rates for longer deposit periods. For example, a five-year FD might give you a higher interest rate than a one-year FD.
Calculating interest on fixed deposits
For fixed deposits with a tenure of up to one year, the simple interest formula can be applied, where:
Interest = Principal x Rate x Time
Here, the principal is your capital amount, the rate is the annual interest rate, and time is the number of years.
For example, if you invest ₹1,00,000 for one year at 7% interest:
Interest = 1,00,000 x 7/100 x 1
= ₹7,000
Calculating compound interest
For fixed deposits longer than a year, banks use compound interest. This means the interest earned is added to your principal at regular intervals, and subsequently you earn interest on this increased amount.
The formula for compound interest is more complex:
A = P(1 + r/n)(nt)
Where:
A = Final amount
P = Principal amount
r = Annual interest rate
n = Number of times interest is compounded per year
t = Number of years
Banks may choose to compound the interest monthly, quarterly, half-yearly, or yearly. More frequent compounding leads to slightly higher returns. For instance, monthly compounding on an FD will give you more interest than yearly compounding at the same interest rate.
If you’re confused about how this complex formula works, then you can simply use an online fixed deposit calculator to determine the interest earnings on your fixed deposit account by just inputting the capital, interest rate, and tenure.
If you wish to start investing in an FD, you can consider opening an online fixed deposit account with IndusInd Bank. Some of the salient features of IndusInd Bank Fixed Deposits include:
● Online FD account opening with instant online KYC
● Competitive interest rates for higher returns
● Easy to manage and operate FD through the IndusMobile app
● Flexible tenures and multiple interest payment options to choose from
To conclude
Understanding how FD interest is calculated can help you make informed investment decisions. While the calculations may seem complex, the basic principle is simple: the longer you invest your capital and the higher the rate of interest, the more your money grows. However, make sure to compare rates from different banks, consider the compounding frequency, and factor in taxes when choosing your FD investments.
Brands
Blenders Pride unveils The One And Only campaign
New 360 campaign celebrates standing apart in a crowded world
MUMBAI: Blenders Pride Packaged Drinking Water has lifted the curtain on its latest campaign, ‘The One And Only’, sharpening its focus on a simple but powerful idea. In a world full of winners, only one truly stands apart.
Launched on 2 March 2026, the new narrative reframes success as something more than visibility or volume. For the brand, true success lies in distinction. It is not about being one among many. It is about being unmistakable.
The campaign brings this thought to life through three striking protagonists. Avanti Nagrath embodies fearless confidence and individuality. Kirandeep Chahal commands attention with a magnetic, unapologetic presence. Mahieka Sharma represents poise and quiet admiration. Each reflects a different facet of the brand’s personality, yet all share the same defining trait. They rise above.
Set in an aspirational world filled with equals, the film suggests that aura, confidence and style are what set the exceptional apart. It is a subtle reminder that influence is not claimed loudly, but worn effortlessly.
Blenders Pride has long positioned itself at the intersection of style and success, shaping modern Indian aspiration through innovation, industry firsts and iconic fashion platforms. With ‘The One And Only’, it turns the spotlight on a new generation that does not just want recognition. It wants admiration.
Pernod Ricard India chief marketing officer Debasree Dasgupta, said the brand has always believed in success with style and stature. She noted that today’s youth do not merely aim to succeed, but to stand apart with assurance, and the campaign captures that cultural shift.
The creative is backed by a full 360-degree rollout across digital and social platforms, including placements during the ICC T20 World Cup, alongside front-page newspaper ads and prominent outdoor sites across major cities. The aim is clear. To ensure the message of distinction is seen everywhere, yet feels like it belongs to the few.
Conceptualised by Ogilvy India, the campaign reinforces Blenders Pride’s long-standing cultural leadership. As Ogilvy North chief creative officer Nitin Srivastava put it, the brand has always stood for stature, style and effortless panache. ‘The One And Only’ simply distils that philosophy for a new era.
In a marketplace crowded with claims of greatness, Blenders Pride is betting on a quieter confidence. Not everyone can be the one and only. But that, perhaps, is the point.
