Fixed Deposit (FD) Calculator

Calculate your FD maturity amount and interest earned

FD Details

More frequent compounding = higher returns

Maturity Amount

₹0

Principal Amount:₹1,00,000
Interest Earned:₹0
Effective Rate:0.00% p.a.

Interest Details

Nominal Rate6.5% p.a.
Effective Rate0.00% p.a.
Avg. Monthly Interest₹0
Total Interest₹0

Investment Summary

Principal Investment₹1,00,000
Total Interest₹0
Interest Rate6.5% p.a.
Tenure5 Years
Compoundingquarterly
Total Maturity Amount₹0

Investment Breakdown

PrincipalInfinity%
Interest Earned0.0%

Year-by-Year Growth

YearPrincipalInterest EarnedTotal Amount
1₹1,00,000₹6,660₹1,06,660
2₹1,00,000₹13,764₹1,13,764
3₹1,00,000₹21,341₹1,21,341
4₹1,00,000₹29,422₹1,29,422
5₹1,00,000₹38,042₹1,38,042

Compounding Frequency Comparison

See how different compounding frequencies affect your FD returns

FrequencyEffective RateInterest EarnedMaturity Amount
Yearly6.50%₹37,009₹1,37,009
Half-Yearly6.61%₹37,689₹1,37,689
Quarterly6.66%₹38,042₹1,38,042
Monthly6.70%₹38,282₹1,38,282

💡 Tip: More frequent compounding leads to slightly higher returns

Bank Interest Rate Comparison

Compare FD returns across different banks (Sample rates, check with banks for current rates)

BankInterest RateInterest EarnedMaturity Amount
SBI6.50% p.a.₹38,042₹1,38,042
SBI (Senior Citizen)7.50% p.a.₹44,995₹1,44,995
HDFC Bank7.00% p.a.₹41,478₹1,41,478
HDFC (Senior Citizen)7.50% p.a.₹44,995₹1,44,995
ICICI Bank7.00% p.a.₹41,478₹1,41,478
ICICI (Senior Citizen)7.50% p.a.₹44,995₹1,44,995

Note: Rates shown are indicative. Senior citizens typically get 0.50% - 0.75% higher rates.

About Fixed Deposit (FD)

What is Fixed Deposit?

A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs that offers investors a higher rate of interest than a regular savings account, until the given maturity date. It's one of the safest investment options in India, offering guaranteed returns with minimal risk. The money is locked in for a specific period, and premature withdrawal may attract penalties.

How FD Interest is Calculated

FD Formula: A = P(1 + r/n)^(nt)

  • • A = Maturity Amount
  • • P = Principal amount invested
  • • r = Annual interest rate (in decimal)
  • • n = Compounding frequency per year
  • • t = Time period in years

Example: ₹1,00,000 at 6.5% for 5 years (quarterly compounding):
A = 1,00,000 × (1 + 0.065/4)^(4×5) = ₹1,37,414

Types of Fixed Deposits

Regular FD:

Standard fixed deposit with flexible tenure. Interest paid at maturity or periodically.

Tax-Saving FD:

5-year lock-in period. Eligible for ₹1.5L deduction under Section 80C.

Senior Citizen FD:

Higher interest rates (0.50% - 0.75% extra) for citizens aged 60+.

Flexi FD:

Linked to savings account. Auto-transfers surplus to FD for better returns.

Key Features of FD

  • Guaranteed returns with capital protection
  • Interest rates range from 5% to 8% depending on bank and tenure
  • Tenure options from 7 days to 10 years
  • Premature withdrawal allowed with penalty (typically 0.5% - 1%)
  • Loan facility available against FD (up to 90% of FD value)
  • Nomination facility available for easy transmission
  • Auto-renewal option at maturity
  • DICGC insurance covers up to ₹5 lakh per bank

FD Interest Rates by Tenure

TenureGeneral PublicSenior Citizens
7 days - 45 days3.00% - 4.00%3.50% - 4.50%
46 days - 6 months4.00% - 5.50%4.50% - 6.00%
6 months - 1 year5.50% - 6.50%6.00% - 7.25%
1 year - 2 years6.50% - 7.00%7.00% - 7.75%
2 years - 5 years7.00% - 7.50%7.50% - 8.00%
5 years - 10 years6.50% - 7.00%7.00% - 7.50%

Note: Rates are indicative and vary across banks. Check with your bank for current rates.

Tax Implications

  • TDS (Tax Deducted at Source): Banks deduct 10% TDS if interest exceeds ₹40,000 in a year (₹50,000 for senior citizens). If no PAN is provided, TDS is 20%.
  • Interest Taxation: FD interest is added to your income and taxed as per your income tax slab. It's not eligible for tax exemption (except 80C FDs).
  • Form 15G/15H: If your total income is below taxable limit, submit these forms to avoid TDS deduction.
  • 80C Benefit: Tax-saving FDs (5-year lock-in) qualify for ₹1.5 lakh deduction under Section 80C, but interest is still taxable.

FD vs Other Investment Options

FeatureFixed DepositSavings AccountRDMutual Funds
Returns5-8% (Fixed)3-4% (Fixed)5-8% (Fixed)8-15% (Market-linked)
RiskVery LowVery LowVery LowMedium to High
LiquidityLow (Penalty)HighLow (Penalty)High
InvestmentLump SumAnytimeMonthlyLump Sum/SIP

When to Invest in FD?

✅ Good For:

  • • Risk-averse investors seeking guaranteed returns
  • • Short to medium-term goals (1-5 years)
  • • Emergency fund parking
  • • Senior citizens needing regular income
  • • Capital preservation with modest returns
  • • Portfolio diversification

❌ Not Ideal For:

  • • Long-term wealth creation (10+ years)
  • • Beating inflation (post-tax returns often lower)
  • • High income individuals (taxed at slab rates)
  • • Aggressive growth expectations
  • • Frequent liquidity needs
  • • Tax-efficient investing

Premature Withdrawal Rules

  • Most banks allow premature withdrawal but charge penalty of 0.5% - 1%
  • Some banks have lock-in period (7 days to 3 months) with no premature withdrawal
  • Interest is recalculated for actual tenure at applicable rate minus penalty
  • Tax-saving FDs (5-year) don't allow premature withdrawal
  • Partial withdrawal not allowed in regular FDs (full closure required)
  • Senior citizens may get lower penalty rates in some banks

Loan Against FD

  • • Get loan up to 90% of your FD value without breaking it
  • • Interest rate: Typically 1% - 2% above FD interest rate
  • • No processing fees or hidden charges
  • • FD continues to earn interest during loan period
  • • Flexible repayment - pay interest monthly or lump sum
  • • Instant approval with minimal documentation
  • • Better than breaking FD and losing penalty

⚠️ Important Points to Remember

  • • FD returns may not beat inflation after tax, especially for high income earners
  • • Interest rates change periodically based on RBI policy and bank decisions
  • • Longer tenure doesn't always mean higher rates - check rate cards carefully
  • • DICGC insurance covers only ₹5 lakh per bank (principal + interest combined)
  • • Some banks offer higher rates for specific tenures - compare before investing
  • • Quarterly compounding is common; monthly gives slightly better returns
  • • Senior citizens should check both regular and special FD schemes
  • • Update nomination to ensure smooth transmission to beneficiaries

💡 Pro Tips for FD Investment

  • • Use FD laddering: Split amount into multiple FDs with different maturities
  • • Choose quarterly compounding for better returns than yearly
  • • Don't put all money in one FD - diversify across banks (DICGC limit)
  • • Check if bank offers higher rates for special tenures (e.g., 400 days)
  • • Submit Form 15G/15H if your income is below taxable limit (avoid TDS)
  • • For senior citizens: Invest in Post Office Senior Citizen Savings Scheme too
  • • Keep FD receipts/certificates safely; digital FDs are more convenient
  • • Set auto-renewal for FDs to avoid missing out during maturity
  • • Consider flexi-FD for emergency fund (better than savings account)