FD Calculator

    Calculate Fixed Deposit returns

    FD Details

    Maturity Details

    Principal Amount

    ₹100,000

    Interest Earned

    ₹7,186

    Maturity Amount

    ₹107,186

    After 1 years at 7% p.a.

    What is a Fixed Deposit?

    A Fixed Deposit (FD) is a financial instrument offered by banks and NBFCs where you deposit a lump sum amount for a fixed period at a predetermined interest rate. It's one of the safest investment options in India, offering guaranteed returns with minimal risk.

    Key Features

    • Guaranteed Returns: Fixed interest rate throughout the tenure

    • Safety: Deposits up to ₹5 lakh insured by DICGC

    • Flexible Tenure: 7 days to 10 years

    • Loan Facility: Can avail loan against FD up to 90% of deposit

    • Senior Citizen Benefits: Additional 0.25% - 0.75% interest

    Interest Calculation Types

    Simple Interest: Interest calculated only on principal amount.

    Formula: SI = P × R × T / 100

    Example: ₹1,00,000 @ 7% for 2 years = ₹14,000 interest

    Compound Interest: Interest calculated on principal + accumulated interest.

    Formula: A = P(1 + r/n)^(nt)

    Example: ₹1,00,000 @ 7% quarterly for 2 years = ₹14,969 interest

    Real-Life Example

    Rajesh wants to save ₹5,00,000 for his daughter's education in 5 years.

    • Savings Account (3.5%): Maturity ₹5,93,968, Interest ₹93,968

    • FD (7% quarterly): Maturity ₹7,07,568, Interest ₹2,07,568

    By choosing FD, Rajesh earns ₹1,13,600 more!

    How to Use This Calculator

    1. Enter the principal amount you want to invest (minimum ₹1,000)

    2. Check your bank's current FD rates (typically 5-8%)

    3. Select investment period (7 days to 10 years)

    4. Choose compounding frequency (more frequent = higher returns, Quarterly recommended)

    Advantages of FD

    • Guaranteed Returns: No market risk

    • Capital Protection: Principal amount is safe

    • Predictable Income: Know exact maturity amount

    • Flexible Tenure: Choose as per your goal

    • Loan Against FD: Emergency liquidity option

    • Tax Benefits: 5-year FD eligible for 80C deduction

    Things to Consider

    • Lower Returns: Compared to equity/mutual funds

    • Inflation Impact: Real returns may be low

    • Premature Penalty: 0.5-1% penalty on early withdrawal

    • TDS Deduction: 10% TDS if interest > ₹40,000/year

    • Lock-in Period: Money not accessible during tenure

    • Taxable Income: Interest taxed as per your slab

    Pro Tips for FD Investment

    • Laddering Strategy: Split investment across multiple FDs with different maturity dates for liquidity and better rates

    • Compare Rates: Small finance banks often offer 1-2% higher rates than traditional banks

    • Auto-Renewal: Enable auto-renewal to avoid missing out on interest during reinvestment gap

    Frequently Asked Questions

    Are Fixed Deposits taxable?

    Yes, the interest earned on Fixed Deposits is fully taxable as per your income tax slab. If your interest income exceeds ₹40,000 in a year (₹50,000 for senior citizens), the bank will deduct TDS at 10%.

    Can I withdraw my FD before maturity?

    Yes, most FDs allow premature withdrawal. However, banks usually charge a penalty ranging from 0.5% to 1% on the applicable interest rate for the period the deposit was held.