Calculator

FD Calculator - Fixed Deposit Maturity Calculator

Calculate your fixed deposit returns with our FD calculator. Get accurate maturity amounts for both simple and compound interest calculations.

Calculate FD Returns
₹
₹10K₹1 Cr
%
3%15%
Months
1 Month10 Years
FD Maturity Summary

Principal Amount

₹1.00 L

Interest Earned

₹7,186

Maturity Amount

₹1.07 L

Maturity Breakdown

Principal: ₹1.00 L
Interest: ₹7,186

FD Tenure

1 Year

Effective Yield

7.19%

Simple Interest Comparison

With simple interest (no compounding), your maturity would be ₹1.07 L. Compound interest gives you an extra ₹186.

Advertisement

Understanding Fixed Deposits

Fixed Deposits (FDs) are one of the most popular and safest investment options in India. They offer guaranteed returns at a fixed interest rate for a specified tenure, making them ideal for risk-averse investors.

FD Interest Calculation

Banks typically calculate FD interest using compound interest with quarterly compounding:

A = P × (1 + r/n)^(n×t)

Where:

  • A = Maturity amount
  • P = Principal (deposit amount)
  • r = Annual interest rate (in decimal)
  • n = Number of times interest compounds per year (4 for quarterly)
  • t = Time period in years

Types of Fixed Deposits

  • Regular FD: Standard fixed deposit with a fixed tenure
  • Tax-Saving FD: 5-year lock-in with tax benefits under Section 80C
  • Senior Citizen FD: Higher interest rates for those above 60 years
  • Flexi FD: Linked to savings account for liquidity
  • Cumulative FD: Interest paid at maturity
  • Non-Cumulative FD: Interest paid monthly/quarterly

Tips for FD Investment

Compare interest rates across banks before investing, consider laddering your FDs to maintain liquidity, utilize the 80C tax benefit with 5-year tax-saving FDs, and remember that senior citizens get an additional 0.25% to 0.5% higher interest rate. For large deposits, consider spreading across multiple banks to stay within the ₹5 lakh DICGC insurance limit.

Frequently Asked Questions

What is a Fixed Deposit (FD)?
A Fixed Deposit is a financial instrument provided by banks and NBFCs where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. FDs offer guaranteed returns and are considered one of the safest investment options in India.
How is FD interest calculated?
FD interest can be calculated using simple interest (interest on principal only) or compound interest (interest on principal plus accumulated interest). Most banks use quarterly compounding. The formula for compound interest is: A = P(1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is time in years.
What are the current FD interest rates?
FD interest rates vary by bank, tenure, and depositor type (regular vs senior citizen). As of 2024, rates typically range from 5% to 7.5% for regular citizens and slightly higher for senior citizens. Always check the latest rates from your preferred bank.
Is FD interest taxable?
Yes, FD interest is taxable as per your income tax slab. Banks deduct TDS (Tax Deducted at Source) at 10% if your total interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. You can submit Form 15G/15H to avoid TDS if your total income is below taxable limits.
Can I break my FD before maturity?
Yes, most FDs can be prematurely withdrawn, but you'll typically face a penalty (usually 0.5% to 1% reduction in interest rate). Some banks offer sweep-in FDs or flexi-deposits that provide liquidity without penalties.
Built with v0