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FD Calculator

Fixed Deposits are one of the safest investment options in India. Use our FD calculator to find out exactly how much your money will grow over time.

FD Calculator

Fixed Deposit Returns Calculator

₹1,00,000
7.5%

Maturity Value

₹1,44,995

Total Invested

₹1,00,000

Wealth Gained

₹44,995

Bank Comparison: Most Indian banks compound interest quarterly. Senior citizens often get an additional 0.50% to 0.75% interest on FDs.

What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a financial instrument provided by banks or NBFCs which offers investors a higher rate of interest than a regular savings account, until the given maturity date. It is considered a low-risk investment.

How FD Interest is Calculated

In India, most banks use the Compound Interest formula for FDs with a tenure of more than 6 months. The frequency of compounding is usually quarterly.

A = P (1 + r/n)^(nt)
A: Maturity Value
P: Principal Amount
r: Annual Interest Rate
t: Number of Years

Benefits of Investing in FD

  • Guaranteed Returns: Unlike the stock market, your returns in an FD are fixed and guaranteed at the time of deposit.
  • Flexible Tenure: You can choose a tenure ranging from 7 days to 10 years based on your financial goals.
  • Loan Against FD: Most banks allow you to take a loan or overdraft of up to 90-95% of your FD value in case of emergencies.

Taxation on FD Interest (TDS)

"Note: The interest earned on FDs is taxable as per your income tax slab. If your total interest income from FDs exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, the bank will deduct TDS at 10%."

Looking for higher returns with slightly more risk? Check out our SIP Calculator to compare FD returns with Mutual Fund historical averages.