FD Calculator
Calculate Fixed Deposit Returns with Compound Interest
How FD Calculator Works
Fixed Deposit (FD) calculator uses the compound interest formula: A = P(1 + r/n)^(nt)
- A = Maturity amount
- P = Principal amount
- r = Annual interest rate (in decimal)
- n = Number of compounding periods per year
- t = Time in years
Higher compounding frequency (monthly/quarterly) yields better returns due to the power of compounding.
Frequently Asked Questions about Fixed Deposits
A Fixed Deposit is a financial instrument offered by banks and NBFCs where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate.
FD interest is calculated using compound interest formula: A = P(1 + r/n)^(nt), where P is principal, r is rate, n is compounding frequency, t is time.
In cumulative FD, interest is reinvested and paid at maturity. In non-cumulative, interest is paid out monthly/quarterly.
Yes, interest earned from FDs is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) annually.
Premature withdrawal usually attracts penalty of 0.5-1% lower interest rate. Some banks offer auto-renewal or sweep-in facilities.
FD is better for lump sum investments, while RD is for regular monthly savings. FD generally offers slightly higher interest rates than RD.
Understanding Fixed Deposits
Benefits of Fixed Deposits:
- Guaranteed returns with capital protection
- Higher interest rates than savings accounts
- Flexible tenure options (7 days to 10 years)
- Loan/overdraft facility against FD
- Auto-renewal option available
Factors Affecting FD Returns:
- Principal amount invested
- Interest rate offered by bank
- Tenure of deposit
- Compounding frequency
- Premature withdrawal penalty
Current FD Interest Rates (Sample):
| Bank | 1 Year Rate | 3 Year Rate | 5 Year Rate |
|---|---|---|---|
| SBI | 6.80% | 7.00% | 7.25% |
| HDFC | 7.00% | 7.25% | 7.50% |
| ICICI | 7.10% | 7.30% | 7.55% |
| Axis | 7.15% | 7.35% | 7.60% |
*Rates are indicative and subject to change
