Fixed Deposit Calculator
Calculate maturity amount and interest earned on your bank fixed deposits
Fixed Deposits (FDs) are investment instruments offered by banks where you deposit a lump sum for a fixed tenure at a predetermined interest rate. This calculator helps you estimate the maturity amount and interest earned on your FD investments, considering factors like interest compounding frequency and TDS deductions.
Fixed Deposit Results
Invested Amount
Total Interest Earned
Maturity Amount
Total value at the end of tenure
| Deposit Amount | ₹ 0 |
|---|---|
| Interest Rate | 0% |
| Tenure | 0 Years, 0 Months, 0 Days |
| Compounding Frequency | Yearly |
| Deposit Type | Regular |
| Interest Payout | At Maturity |
| TDS Deducted | ₹ 0 |
| Annual Return | 0% |
Investment Breakdown
Year-by-Year Growth
| Year | Interest | Balance |
|---|
Fixed Deposit Guide & Tutorial
Understanding Fixed Deposits
A Fixed Deposit (FD) is a secure investment instrument where you deposit a lump sum amount for a fixed period at a predetermined interest rate. FDs offer guaranteed returns and are popular among risk-averse investors seeking stable income.
Key Benefits
- Guaranteed returns
- Higher interest rates than savings accounts
- Flexible tenure options
- Loan facility against FD
Important Considerations
- Premature withdrawal penalties
- TDS implications
- Interest rate fluctuations
- Lock-in period
Types of Fixed Deposits
Regular FD
- Standard fixed deposit account
- Interest paid at maturity or as per chosen frequency
- Flexible tenure options
- Premature withdrawal allowed with penalty
Tax Saving FD
- 5-year lock-in period
- Tax deduction under Section 80C
- No premature withdrawal
- Maximum investment limit: ₹1.5 lakhs per year
Senior Citizen FD
- Additional interest rate (usually 0.5%)
- Age criteria: 60 years and above
- Higher TDS exemption limit
- Special schemes by some banks
Cumulative vs Non-Cumulative FD
- Cumulative: Interest reinvested, paid at maturity
- Non-Cumulative: Regular interest payouts
- Choice of payout frequency in non-cumulative
- Different effective yields
Understanding Interest Calculation
Simple Interest vs Compound Interest
| Aspect | Simple Interest | Compound Interest |
|---|---|---|
| Interest Calculation | Only on principal | On principal + accumulated interest |
| Returns | Lower | Higher |
| Best For | Short-term deposits | Long-term deposits |
Compounding Frequency Impact
| Frequency | Times per Year | Effect on Returns |
|---|---|---|
| Yearly | 1 | Lowest |
| Half-yearly | 2 | Higher |
| Quarterly | 4 | Even higher |
| Monthly | 12 | Highest |
How to Use the FD Calculator
Enter Principal Amount
Input the amount you wish to deposit. Consider your investment goals and available funds.
Specify Interest Rate
Enter the annual interest rate offered by your bank. For senior citizens, include the additional rate benefit.
Choose Tenure
Select the investment period in years, months, and days. Consider your financial goals and liquidity needs.
Select Interest Compounding
Choose the compounding frequency offered by your bank (yearly, half-yearly, quarterly, or monthly).
Choose Payout Option
Select whether you want interest at maturity or periodic payouts (monthly, quarterly, etc.).
Review Results
Analyze the maturity amount, total interest earned, and year-wise growth details to make informed decisions.
Tax Implications on Fixed Deposits
TDS Rules
- TDS Rate: 10% (20% for non-PAN cases)
- Threshold: Interest exceeding ₹40,000 per year (₹50,000 for senior citizens)
- Form 15G/15H: Can be submitted to avoid TDS if eligible
- TDS Certificate: Form 16A issued quarterly
Income Tax Implications
- Taxability: Interest fully taxable at slab rate
- Accrual Basis: Taxed whether received or reinvested
- Section 80TTB: Deduction up to ₹50,000 for senior citizens
- Tax Planning: Consider tax-saving FDs under Section 80C
Frequently Asked Questions
Premature withdrawal of FD typically results in:
- Penalty Rate: Usually 0.5% to 1% reduction in applicable interest rate
- Interest Recalculation: Interest recalculated at rate applicable for actual period
- TDS Adjustment: Excess TDS, if any, can be claimed in tax return
Some banks may waive penalties in specific circumstances like medical emergencies or senior citizens.
The choice depends on your needs:
| Choose Cumulative If | Choose Non-Cumulative If |
|---|---|
| You don't need regular income | You need regular income |
| Want to maximize returns | Want fixed periodic payouts |
| Have other income sources | Depend on interest income |
Cumulative FDs generally give higher returns due to compounding effect.
There are several ways to avoid or minimize TDS on FD interest:
- Submit Form 15G/15H:
- Form 15G: For non-senior citizens if total income is below taxable limit
- Form 15H: For senior citizens if total income is below taxable limit
- Distribute FDs:
- Split FDs across multiple banks
- Keep interest below ₹40,000 (₹50,000 for senior citizens) per bank
- Joint Accounts:
- Create FDs with family members
- Interest split between holders
Remember: Even if TDS is not deducted, interest remains taxable as per your slab rate.
| Parameter | Bank FD | Corporate FD |
|---|---|---|
| Interest Rates | Lower | Higher |
| Risk Level | Low (DICGC coverage) | Higher (depends on company rating) |
| Insurance Coverage | Up to ₹5 lakhs | No insurance |
| Premature Withdrawal | Usually easier | May have restrictions |
Choose based on your risk appetite and need for returns. Always check company ratings for corporate FDs.
FD interest rates are influenced by RBI policy rates in the following ways:
- When RBI Increases Rates:
- Banks typically increase FD rates
- New FDs get higher rates
- Existing FDs continue at old rates
- When RBI Decreases Rates:
- Banks may reduce FD rates
- New FDs get lower rates
- Existing FDs are protected at old rates
Strategy Tips:
- Book longer tenure FDs when rates are high
- Consider shorter tenures when rates are low
- Look for special rates during festival seasons