FD Calculator

Fixed Deposit (FD) Calculator - Check Maturity Amount

A Fixed Deposit (FD) is one of the safest and most popular investment options in India. Offered by banks and Non-Banking Financial Companies (NBFCs), it provides a guaranteed rate of return on your savings. Our FD Calculator helps you determine the maturity amount and the interest earned on your deposit over a specific tenure.

What is a Fixed Deposit?

A Fixed Deposit is a financial instrument where you deposit a lump sum amount for a fixed period, ranging from 7 days to 10 years. In return, the bank pays you interest at a rate higher than a regular savings account. The interest rate remains locked for the entire tenure, protecting your returns from market fluctuations.

How Does FD Calculation Work?

In India, interest on Fixed Deposits is typically compounded quarterly (every 3 months). This means the interest earned in the first quarter is added to the principal, and interest for the next quarter is calculated on this increased amount.

The formula used is: A = P × (1 + r/n)^(n×t)

• A = Maturity Amount
• P = Principal Amount
• r = Rate of Interest (decimal)
• n = Compounding frequency per year (4 for Quarterly)
• t = Time in years

Key Benefits of Fixed Deposits

• Safety: FDs are low-risk investments. Deposits up to ₹5 Lakh in scheduled banks are insured by DICGC.
• Guaranteed Returns: Unlike mutual funds, FD returns are not dependent on market performance.
• Liquidity: You can withdraw your FD prematurely in case of emergencies (usually with a small penalty).
• Tax Saving: 5-year Tax-Saving FDs are eligible for deduction under Section 80C.

Factors Affecting FD Interest Rates

• Repo Rate: Changes in the RBI's repo rate often influence bank FD rates.
• Tenure: Generally, medium to long-term deposits offer higher interest rates.
• Senior Citizen Status: Banks usually offer 0.50% higher interest rates to senior citizens (above 60 years).
• Bank Type: Small Finance Banks and NBFCs often offer higher rates compared to large public or private sector banks.

TDS on Fixed Deposit

Interest earned on FD is fully taxable. Banks deduct TDS (Tax Deducted at Source) at 10% if the annual interest income exceeds ₹40,000 (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G/15H to the bank to avoid TDS deduction.

Disclaimer: This FD Calculator provides estimates based on quarterly compounding logic used by most banks. Actual maturity amounts may vary slightly due to day-count conventions, leap years, or TDS deductions. Please verify with your bank.