FD Calculator - Fixed Deposit Interest Calculator

Calculate your fixed deposit maturity amount and interest earnings with our free FD calculator. Get accurate FD calculations for all banks in India.

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Calculate Your FD Maturity Amount
₹1,00,000
₹10,000₹1 Crore
7%
3%10%
3 Years
1 Year10 Years
Principal vs Interest
Total₹1,23,144
Principal Amount
₹1,00,000
Interest Earned
₹23,144

Principal Amount

₹1,00,000

Total Interest

₹23,144

Maturity Amount

₹1,23,144

Principal vs Interest18.8% interest earned
Principal
Interest
Maturity: ₹1,23,144
FD @ 8.60% Interest

Senior Citizen Extra 0.5%

Highest InterestSafe InvestmentFlexible Tenure
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What is Fixed Deposit (FD)?

A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs in India that offers a higher interest rate than a regular savings account. When you open an FD, you deposit a lump sum amount for a fixed tenure ranging from 7 days to 10 years. The money earns guaranteed interest at a predetermined rate.

Fixed deposits are one of the safest investment options in India as bank FDs up to ₹5 lakhs are insured by DICGC. They offer predictable returns and are ideal for conservative investors seeking capital preservation with steady income.

How FD Interest is Calculated

FD interest is calculated using compound interest formula. Most banks compound interest quarterly, though some offer monthly or yearly compounding.

A = P × (1 + r/n)^(n×t)

  • A = Maturity Amount
  • P = Principal (Initial Deposit)
  • r = Annual Interest Rate (decimal)
  • n = Compounding Frequency per year
  • t = Tenure in years

Example FD Calculation

  • Principal: ₹1,00,000
  • Interest Rate: 7% p.a.
  • Tenure: 5 years
  • Compounding: Quarterly
  • Maturity Amount: ₹1,41,478
  • Total Interest: ₹41,478

Factors Affecting FD Returns

  • Interest Rate: Higher rate means more returns; rates vary by bank and tenure
  • Tenure: Longer tenures often get higher rates up to a point
  • Compounding Frequency: More frequent compounding yields higher returns
  • Type of FD: Cumulative FDs give higher effective returns than non-cumulative
  • Depositor Category: Senior citizens get 0.25-0.50% extra interest

Benefits of Fixed Deposit

  • Guaranteed Returns: Interest rate is fixed at deposit time
  • Capital Safety: Principal is protected; DICGC insures up to ₹5 lakhs
  • Flexible Tenure: Choose from 7 days to 10 years
  • Loan Against FD: Get up to 90% of FD value as loan
  • Regular Income: Non-cumulative FDs provide monthly/quarterly interest payouts
  • Easy to Open: Simple documentation, available online

FD Types: Cumulative vs Non-Cumulative

FeatureCumulative FDNon-Cumulative FD
Interest PayoutAt maturityMonthly/Quarterly
Compounding BenefitYesNo
Effective ReturnsHigherLower
Best ForWealth creationRegular income needs

Frequently Asked Questions

FD interest rates in India typically range from 6-7.5% for major banks like SBI, HDFC, ICICI. Small finance banks offer 7.5-8.5%. Senior citizens get an additional 0.25-0.50%. Rates vary based on tenure, with 1-3 year tenures often offering the best rates.

Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below taxable limit.

Yes, premature withdrawal is allowed but attracts a penalty of 0.5-1% on the applicable interest rate. Some banks don't charge penalty for partial withdrawals. Consider a sweep-in FD or FD ladder strategy to maintain liquidity.

Small finance banks like Unity, Ujjivan, and Equitas typically offer highest rates (7.5-8.5%). Among large banks, IndusInd and Yes Bank often have competitive rates. Compare rates across banks before investing, considering safety and convenience.

FD offers higher interest (6-7.5%) compared to savings account (2.5-4%). However, FD locks your money for a fixed period with penalty for early withdrawal. Keep emergency funds in savings account and surplus in FD for better returns.
Disclaimer

This calculator is provided for informational purposes only. The results are estimates and should not be considered as financial advice. Actual values may vary based on various factors. Please consult a certified financial advisor before making any financial decisions.

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