FD Calculator

Calculate your Fixed Deposit maturity amount and interest earned.

₹1,00,000
₹10,000₹1,00,00,000
6.5%
1%15%
5Yr
1Yr20Yr

* Assuming quarterly compounding as standard for most Indian banks.

Total Investment
₹ 1,00,000
Total Interest
₹ 38,042
Maturity Value
₹ 1,38,042
Invested
Est. Returns

Understanding the Fixed Deposits (FD)

What is a Fixed Deposit?

A Fixed Deposit (FD) is a financial instrument provided by banks and non-banking financial companies (NBFCs) which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It is one of the safest and most popular investment options in India.

How is FD Interest Calculated?

Most banks in India calculate Fixed Deposit interest using quarterly compounding. This means the interest you earn in the first quarter is added back to your principal, and in the next quarter, you earn interest on that newly increased principal. This causes your money to grow slightly faster than simple annual interest.

Taxation on FDs

It is important to note that the interest earned on Fixed Deposits is fully taxable. The interest is added to your total income and taxed according to your income tax slab. If your interest income exceeds ₹40,000 in a year (₹50,000 for senior citizens), the bank will deduct a 10% TDS (Tax Deducted at Source) before paying you the interest.

Frequently Asked Questions

Can I withdraw my FD before maturity?

Yes, premature withdrawal is usually allowed but it comes with a penalty. The bank will typically reduce the interest rate by 0.5% to 1% from the rate that was applicable for the period the deposit was actually held.

Are FDs completely risk-free?

FDs are extremely safe. In India, bank deposits up to ₹5 Lakhs per bank per individual are insured by the DICGC, a subsidiary of the RBI. However, they are not completely immune to 'inflation risk', meaning the interest rate might be lower than the inflation rate.

What is a Tax-Saving FD?

A Tax-Saving FD allows you to claim tax deductions under Section 80C of the Income Tax Act (up to ₹1.5 Lakhs). However, these FDs have a strict lock-in period of 5 years, and premature withdrawal is not allowed.