FD Calculator

What is Fixed Deposit (FD)?

A Fixed Deposit (FD) is a financial instrument where you invest a lump sum amount for a fixed tenure at a predetermined interest rate. It offers guaranteed returns with sovereign backing (up to ₹5 lakh covered by DICGC), making it one of the safest investment options in India.

FD Calculation Formula

Maturity Amount = P × (1 + r/n)^(n×t), where P = Principal amount, r = Annual interest rate (as decimal), n = Compounding frequency per year, t = Tenure in years. Total Interest = Maturity - Principal, Effective Yield = (Maturity/P)^(1/t) - 1 × 100%.

Example Calculation

Principal: ₹5,00,000 | Interest Rate: 7% | Tenure: 5 years | Compounding: Quarterly
Maturity Amount: ₹7,08,145 | Total Interest: ₹2,08,145 | Effective Yield: 7.28%

Benefits of FD Calculator

• Plan your savings goals with guaranteed returns
• Compare different compounding frequencies
• Calculate interest for tax planning (TDS on interest > ₹40,000)
• Senior citizens can see 0.50% extra rate benefit
• Plan for retirement corpus

Compounding Frequency Explained

• Monthly: Interest calculated 12 times per year - highest returns
• Quarterly: 4 times per year - standard for most banks
• Half-Yearly: 2 times per year
• Annually: Once per year - lowest returns among these

Taxation on FD

Interest earned on FD is fully taxable as per your income tax slab. TDS is deducted at 10% if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. Submit Form 15G/15H to avoid TDS if your income is below taxable limit.

Senior Citizen Benefits

Most banks offer an additional 0.50% interest rate for senior citizens. Some smaller banks offer up to 0.75% extra. Use this calculator to see the additional returns.