FD Calculator
Easily calculate the returns on your Fixed Deposit investment
Investment Results
Principal Amount
₹1,00,000
Total Interest Earned
₹38,026
Maturity Value
₹1,38,026
Investment Breakdown
72%
28%
Principal
Interest
Growth Projection
Start
25%
50%
75%
End
Max
75%
50%
25%
0
Growth
Investment
Tips for FDs
- Compare Interest Rates: Compare rates offered by different banks and NBFCs.
- Choose Tenure Wisely: Select a tenure that aligns with your financial goals.
- Compounding Frequency: Higher frequency yields slightly better returns.
- Senior Citizen Benefits: Senior citizens usually get higher interest rates.
- Consider TDS: Tax is deducted at source (TDS) on FD interest. Submit Form 15G/15H if applicable.
Example FD Interest Rates (General Public)
| Bank Name | 7-45 Days | 1 Year to < 2 Years | 2 Years to < 3 Years | 3 Years to < 5 Years | 5 Years and above |
|---|---|---|---|---|---|
| SBI | 3.50% | 6.80% | 7.00% | 6.75% | 6.50% |
| ICICI Bank | 3.75% | 6.90% | 7.10% | 6.80% | 6.60% |
| HDFC Bank | 3.60% | 6.75% | 7.05% | 6.70% | 6.55% |
| Axis Bank | 3.50% | 6.85% | 7.10% | 6.75% | 6.50% |
| Kotak Mahindra Bank | 3.70% | 7.00% | 7.15% | 6.80% | 6.65% |
| Post Office TD | N/A | 6.90% (1 Yr) | 7.00% (2 Yr) | 7.10% (3 Yr) | 7.50% (5 Yr) |
Disclaimer: The interest rates shown above are indicative and for illustration purposes only. Actual rates may vary and are subject to change. Please contact the respective banks for the latest FD rates.
Introduction to Fixed Deposits (FD)
A Fixed Deposit (FD) is a popular investment instrument offered by banks and Non-Banking Financial Companies (NBFCs). It allows you to deposit a sum of money for a specific period at a predetermined interest rate. FDs generally offer higher returns than savings accounts and are considered a low-risk investment.
What is a Fixed Deposit?
A Fixed Deposit is a financial instrument where you invest a lump sum amount for a fixed tenure. During this period, your deposit earns interest at a pre-decided rate. At the end of the tenure, you receive the principal amount along with the accumulated interest, known as the maturity amount.
How Does an FD Work?
When you invest in an FD:
- You deposit the amount you wish to invest (principal) at one go.
- You choose the investment tenure (e.g., 1 year, 3 years, 5 years).
- The bank or NBFC offers you a specific interest rate.
- Interest is typically compounded quarterly or annually, meaning the interest earned also starts earning interest.
- At the end of the tenure, the principal amount and the cumulative interest are paid out to you.
The basic formula used to calculate the FD maturity value is:
FD Formula:
A = P * (1 + r/n)nt
Where:
A = Maturity Amount
P = Principal investment amount
r = Annual interest rate (in decimal, e.g., 6.5% = 0.065)
n = Number of times interest is compounded per year (e.g., 4 for quarterly)
t = Tenure in years
How to Use Our FD Calculator?
Our FD Calculator is easy to use:
- Enter the amount you plan to deposit in the "Total Investment" field.
- Input the "Annual Interest Rate."
- Enter the "Investment Tenure" in Years, Months, and Days.
- Select the "Compounding Frequency" from the dropdown.
- The calculator will instantly display the principal amount, total interest earned, and the maturity value.
- Use the input fields to see how different values impact your potential returns.
Benefits of FDs
- Guaranteed Returns: FDs offer a fixed interest rate, so your returns are assured.
- Low Risk: They are considered one of the safest investment avenues.
- Ease of Access: Opening and managing an FD account is straightforward.
- Loan Facility: Most banks offer a loan facility against your FD.
- Higher Rates for Senior Citizens: Banks usually offer higher interest rates to senior citizens.
Frequently Asked Questions (FAQs) about FDs
Q: What is the minimum and maximum investment amount for an FD?
A: This varies from bank to bank. Typically, the minimum amount can start from ₹1,000. There is usually no upper limit.
Q: Can I withdraw my FD before maturity?
A: Yes, most FDs come with an option for premature withdrawal. However, this may attract a penalty, usually in the form of a reduced interest rate.
Q: Is FD interest taxable?
A: Yes, the interest earned from an FD is added to your income and taxed as per your income tax slab. Banks may also deduct TDS (Tax Deducted at Source) if the interest income exceeds a certain limit in a financial year.
Q: How does compounding frequency affect returns?
A: The higher the compounding frequency, the more interest you earn. For example, quarterly compounding will yield more interest than annual compounding, all other factors being equal.