Fixed Deposit (FD) Calculator – Know Your Returns

What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a safe and popular investment option provided by banks and NBFCs, where a lump sum amount is deposited for a fixed time at a fixed interest rate. It gives higher returns compared to a savings account and ensures capital safety. At maturity, you receive your original amount plus interest.

How is FD Interest Calculated?

FD interest is calculated using either Simple Interest or Compound Interest, based on the bank’s offering.

📌 Simple Interest Formula:

Interest = (P × R × T) / 100
Where:
P = Principal amount  
R = Annual interest rate  
T = Time in years

📌 Compound Interest Formula:

A = P × (1 + R / (n × 100)) ^ (n × T)
Where:
A = Maturity amount  
P = Principal  
R = Rate of interest  
T = Time in years  
n = Compounding frequency (1 = yearly, 4 = quarterly, etc.)

Types of Fixed Deposits in India

• Regular FD: Fixed tenure, fixed returns.
• Tax-Saving FD: 5-year lock-in, tax deduction under Section 80C.
• Senior Citizen FD: Higher interest for those above 60 years.
• Cumulative FD: Interest paid at maturity.
• Non-Cumulative FD: Interest paid monthly/quarterly/yearly.
• Flexi FD: Linked to your savings account for flexible deposits/withdrawals.

Benefits of Investing in FD

• Guaranteed and stable returns
• Flexible deposit periods (7 days to 10 years)
• Higher than savings account returns
• Extra interest for senior citizens
• Loan facility available
• Tax deduction on Tax-saving FDs (up to ₹1.5 lakh under 80C)

FD vs Recurring Deposit (RD)

Frequently Asked Questions (FAQs)

Q1. What is the minimum amount to open an FD?
Most banks allow FDs starting from ₹1000.

Q2. Can I withdraw FD before maturity?
Yes, but premature withdrawal may attract a penalty on interest.

Q3. Is the FD interest taxable?
Yes. Interest is added to your annual income and taxed based on your slab.

Q4. What is TDS on FD?
5%-10% TDS is applicable if total interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

Calculate Returns with FD Calculator

Use the FD Calculator above to estimate maturity value and interest earned based on your investment amount, duration, and interest rate. It helps in planning your investments better.