Fixed Deposit Calculator

Calculate FD maturity amount • Interest earned • Quarterly compounding

FD Calculator

Fixed Deposit
%
Years

Breakdown

About Fixed Deposits

Fixed Deposits are one of the safest investment options in India. You deposit a lump sum with a bank for a fixed tenure at a predetermined interest rate, guaranteed by the institution.

Why Choose FD:

  • Capital protection with guaranteed returns
  • Deposits up to ₹5 lakhs insured by DICGC
  • Flexible tenures from 7 days to 10 years
  • Higher rates for senior citizens
  • Tax-saving FDs available under Section 80C

How FD Interest Works

Quarterly Compounding Formula:

A = P × (1 + r/4)^(4×t)

A = Maturity Amount

P = Principal (Deposit Amount)

r = Annual Interest Rate (as decimal)

t = Time Period in Years

Most Indian banks compound FD interest quarterly, meaning interest is calculated and added to principal every 3 months, resulting in higher effective returns.

Key Insights

🛡️ Safety First

FDs are covered by deposit insurance up to ₹5 lakhs per bank. For amounts above this, consider spreading across multiple banks.

💰 Senior Citizen Benefits

Senior citizens (60+) typically get 0.25-0.50% extra interest on FDs, making them more attractive for retirees.

📊 Laddering Strategy

Instead of one large FD, create multiple FDs with staggered maturities to maintain liquidity and capture rate changes.

Did You Know?

🏦 Corporate FDs

Corporate FDs offer higher rates (1-2% more) but aren't covered by deposit insurance. Only invest in AAA-rated companies.

📈 Inflation Impact

If FD rate is 6.5% and inflation is 5%, your real return is only ~1.5%. Consider debt mutual funds for potentially better tax-adjusted returns.

⏰ Auto-Renewal

Most banks auto-renew FDs at maturity at prevailing rates. If rates have dropped, it's better to manually reinvest elsewhere!

Frequently Asked Questions About Fixed Deposits

A Fixed Deposit (FD) is a safe investment where you deposit a lump sum amount with a bank or financial institution for a fixed tenure at a predetermined interest rate. It's one of the safest investment options as deposits up to ₹5 lakhs are insured by DICGC.
FD interest is typically calculated using compound interest with quarterly compounding in India. Formula: A = P(1 + r/4)^(4t), where P is principal, r is annual rate, and t is time in years. Some banks also offer monthly or cumulative interest options.
Cumulative FD: Interest is compounded and paid at maturity along with principal, resulting in higher returns. Non-cumulative FD: Interest is paid out at regular intervals (monthly/quarterly/annually), providing regular income but lower total returns. Choose cumulative for wealth accumulation, non-cumulative for regular income.
Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS @ 10% if interest exceeds ₹40,000/year (₹50,000 for senior citizens). You can submit Form 15G/15H if your total income is below taxable limit to avoid TDS. Interest must be declared in ITR even if TDS isn't deducted.
Yes, premature withdrawal is allowed but comes with penalties. Typically, you'll receive a lower interest rate (0.5-1% less than contracted rate) and may face a penalty charge. Some banks offer partial withdrawal facility. Tax-saver FDs have a mandatory 5-year lock-in and cannot be withdrawn prematurely.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits up to ₹5 lakhs per depositor per bank, covering both principal and interest. This includes all deposits (savings, FD, RD) combined. If you have more than ₹5 lakhs, consider spreading across multiple banks for full coverage.
Bank FDs typically offer 5.5-7.5% for regular customers and higher rates for senior citizens. Post Office FDs offer government-backed security and competitive rates (currently ~7%). Post Office FDs have 5-year tenure with tax benefits under 80C. Choose based on your priorities: bank FDs for flexibility and higher rates, post office for maximum safety.
TDS @ 10% is deducted if FD interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). TDS @ 20% if PAN not provided. Submit Form 15G (below 60 years) or 15H (senior citizens) if total income is below taxable limit to prevent TDS. TDS deducted can be claimed as credit when filing ITR.