Calculate your Fixed Deposit maturity amount and interest earned.
A FD calculator (Fixed Deposit calculator) helps you calculate the maturity amount and interest earned on your fixed deposit investment. By entering the principal amount, interest rate, tenure, and compounding frequency, our online FD calculator instantly shows your returns so you can compare different FD options before investing.
For compound interest FD: Maturity Amount = P × (1 + r/n)^(n×t), where P = Principal, r = Annual interest rate, n = Compounding frequency per year, t = Time in years. For simple interest FD: Interest = P × r × t / 100. Most bank FDs use quarterly compounding, meaning interest compounds 4 times per year.
FD rates vary between banks. Typically, small finance banks and NBFCs offer higher rates (7-9%) compared to large public sector banks (6-7.5%). Senior citizens get an additional 0.25% to 0.75% interest rate benefit. Tax-saving FDs (5-year lock-in) qualify for deduction under Section 80C. Always compare rates across multiple banks before opening an FD.
Banks deduct TDS (Tax Deducted at Source) at 10% if your total FD interest from one bank exceeds Rs. 40,000 per year (Rs. 50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G (or Form 15H for seniors) to your bank to avoid TDS deduction. TDS is a prepayment of tax, not additional tax — it is adjusted in your annual ITR filing.
FDs offer higher guaranteed returns than savings accounts (typically 6-9% vs 3-4%). They are safer than equity mutual funds but offer lower potential returns. FDs are best for short to medium-term goals (6 months to 5 years) where capital safety is the priority. For long-term goals (7+ years), equity mutual funds typically outperform FDs significantly after accounting for inflation and taxes.
A Fixed Deposit (FD) is a savings instrument offered by banks where you deposit a lump sum for a fixed period at a predetermined interest rate.
Simple interest FDs pay interest only on the principal. Compound interest FDs (more common) pay interest on principal plus previously earned interest.
Yes, FD interest is fully taxable as income in India. Banks deduct TDS (Tax Deducted at Source) at 10% if interest exceeds Rs. 40,000 per year (Rs. 50,000 for seniors).
Yes, most banks allow premature withdrawal of FDs but charge a penalty (usually 0.5% to 1% reduction in interest rate) for early closure.
