FD Calculator
Investment Details
Maturity Summary
Total Value
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Principal Amount
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Total Interest Earned
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Secure Your Future with the Fixed Deposit Calculator
Fixed Deposits (FDs) are the most trusted and secure investment option in India, offering guaranteed returns with zero market risk. Our free online FD Calculator helps you instantly estimate your maturity amount and total interest earned, so you can plan your financial goals with absolute certainty.
What is a Fixed Deposit (FD)?
A Fixed Deposit is a financial instrument provided by banks and NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. You deposit a lump sum amount once, and it grows at a fixed rate over your chosen tenure.
How are FD Returns Calculated?
In India, most banks compound FD interest on a quarterly basis. The formula used is:
- M: Maturity amount.
- P: Principal investment amount.
- r: Annual interest rate (in decimals).
- n: Number of times interest is compounded per year (usually 4 for quarterly).
- t: Tenure in years.
Benefits of Fixed Deposits
Guaranteed Returns
Unlike mutual funds or stocks, FD returns are entirely insulated from market volatility. The interest rate you lock in is guaranteed.
High Liquidity
While funds are locked in, you can easily break an FD prematurely in case of emergencies (subject to a small penalty).
Power of Compounding
With quarterly compounding, you earn interest on your interest, helping your wealth grow steadily over time.
Loan Against FD
You can easily secure a loan or overdraft against your FD without breaking it, often at very low interest rates.
Frequently Asked Questions (FAQs)
Are FD returns taxable?
Yes, the interest earned on Fixed Deposits is fully taxable according to your income tax slab. Banks may also deduct TDS at 10% if your interest income exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
What is the difference between simple and compound interest in FDs?
If your FD tenure is less than 6 months, banks usually calculate simple interest. For tenures above 6 months, interest is compounded quarterly, meaning you earn interest on previously accumulated interest.
Do senior citizens get higher interest rates?
Yes, almost all banks and NBFCs in India offer an additional 0.50% to 0.75% interest rate to senior citizens (individuals aged 60 and above) on their Fixed Deposits.