Fixed Deposit Calculator

For example, enter 7.5 for 7.5%.
Monthly means interest is applied every month, quarterly every 3 months, etc.

What is a Fixed Deposit Calculator?

A Fixed Deposit (FD) Calculator is a smart online tool designed to help investors calculate the final maturity value of their fixed deposit investment. It eliminates manual calculations and provides instant, accurate results based on the principal amount, interest rate, duration, and compounding frequency.

How Does a Fixed Deposit Work?

A Fixed Deposit is one of the most popular and safest investment options offered by banks and financial institutions. When you invest a lump sum amount for a fixed period, your money earns interest at a pre-decided rate. The interest is compounded periodically (monthly, quarterly, half-yearly, or annually) and added to your investment, growing your corpus over time.

Benefits of Using a Fixed Deposit Calculator

Fixed Deposit Formula

The formula used to calculate compound interest in a fixed deposit is:

Maturity Amount (A) = P × (1 + r/n)nt

Where:
P = Principal amount (Initial investment)
r = Annual interest rate (in decimal)
n = Number of compounding periods in a year
t = Time period in years

Example Calculation

Suppose you invest ₹1,00,000 for 3 years at an annual interest rate of 6.5% compounded quarterly. Then:

Maturity Amount = ₹1,00,000 × (1 + 0.065 / 4)4×3 ≈ ₹1,21,000
Interest Earned = ₹21,000

Key Factors Affecting FD Returns

Types of Fixed Deposits in India

  1. Regular FD: Offered to general customers with fixed interest.
  2. Tax-Saving FD: Lock-in of 5 years, eligible for tax deduction under Section 80C.
  3. Senior Citizen FD: Higher interest rates for individuals above 60 years.
  4. Flexi Deposit: Combines features of savings and FD accounts.

Tips to Maximize Your FD Returns

Frequently Asked Questions (FAQs)

🔹 Is Fixed Deposit a safe investment?

Yes, FDs are one of the safest investment avenues. Most bank FDs are insured up to ₹5 lakh under DICGC.

🔹 What is the maximum interest I can earn on FD?

This depends on the tenure, the bank, and your customer type (e.g., senior citizens get better rates). Private banks and NBFCs may offer slightly higher rates than public banks.

🔹 How often is interest compounded in an FD?

Interest can be compounded monthly, quarterly, half-yearly, or annually based on the product chosen. Quarterly compounding is most common.

🔹 Can I withdraw FD before maturity?

Yes, but premature withdrawals may attract penalties and lower interest earnings. Consider your liquidity needs before choosing a tenure.

🔹 Is interest on FD taxable?

Yes. Interest earned on FDs is fully taxable under the head "Income from Other Sources" as per your income tax slab. If total interest exceeds ₹40,000 (₹50,000 for senior citizens), TDS is applicable.

Conclusion

Fixed Deposits continue to be a popular and trusted option for Indian investors looking for steady and secure returns. Whether you are planning for short-term savings or long-term goals, an FD can offer financial peace of mind with guaranteed returns. Use our free FD Calculator to plan smarter, compare options, and make informed investment decisions.

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