FD Calculator
Calculate Fixed Deposit maturity amount
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About FD Calculator
A Fixed Deposit (FD) calculator helps you calculate the maturity amount and interest earned on your FD investment. It's essential for comparing FD schemes from different banks and planning your savings to meet short-term and medium-term financial goals.
How Does FD Interest Work?
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You deposit a lump sum amount for a fixed period (tenure)
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Interest is calculated based on the rate offered by the bank
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Interest is compounded quarterly, half-yearly, or yearly depending on the scheme
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At maturity, you receive principal + accumulated interest
Example:
If you deposit ₹1 lakh at 6.5% for 5 years with quarterly compounding, you'll receive approximately ₹1.37 lakhs at maturity, earning ₹37,000 in interest.
Key Benefits
Guaranteed Returns: Fixed returns regardless of market conditions
Capital Safety: Principal amount is completely safe and guaranteed
Flexible Tenure: Choose from 7 days to 10 years based on your needs
Senior Citizen Benefits: Additional 0.5% interest for senior citizens
Loan Against FD: Get loan up to 90-95% of FD value at low interest
Tax Saving: 5-year tax saver FD offers deduction under Section 80C
Frequently Asked Questions
Can I withdraw FD before maturity?
Yes, premature withdrawal is allowed but banks charge a penalty (usually 0.5-1% on interest rate). The interest is recalculated at a lower rate for the actual deposit period.
Is FD interest taxable?
Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below taxable limit.
Which is better - monthly or quarterly compounding?
More frequent compounding gives higher returns. Monthly compounding is best, followed by quarterly. The difference isn't huge but adds up over longer tenures.
What's the difference between FD and RD?
FD requires one-time lump sum deposit while RD involves monthly deposits. FD gives slightly higher returns and is suitable if you have surplus amount. RD is better for monthly savers.
What is the FD maturity calculation formula?
FD maturity = P × (1 + r/n)^(n×t), where P = Principal, r = Annual interest rate, n = Compounding frequency per year, t = Time in years. For ₹1 lakh at 6.5% for 5 years quarterly: (1 + 0.065/4)^(4×5) = ₹1,37,414.
Which bank offers the highest FD rates?
Small finance banks like Ujjivan, Equitas, AU typically offer 7-8% while major banks offer 6-7%. Senior citizens get extra 0.5%. Check RBI website for updated rates. Don't chase highest rates blindly - ensure bank is DICGC insured (up to ₹5 lakh protection).
Can I get a loan against my FD?
Yes, most banks offer loans up to 90-95% of FD value at interest rates 1-2% above the FD rate. Your FD continues earning interest while you use the loan. No processing fees, instant approval, and flexible repayment. Useful for short-term liquidity needs without breaking FD.
What is the minimum and maximum FD tenure?
Minimum tenure: 7 days to 1 month depending on bank. Maximum: 10 years for regular FDs. Tax-saving FDs have mandatory 5-year lock-in. Banks offer special rates for specific tenures like 390 days or 18 months - these 'sweet spot' tenures often give best returns.
Should senior citizens invest in regular or senior citizen FDs?
Senior citizen FDs offer 0.25-0.5% extra interest (total 7-8.5%). This makes significant difference over time. For ₹10 lakh at 7.5% vs 7% for 5 years, extra interest = ₹40,000+. Always choose senior citizen FD if you're 60+. Some banks also have special monthly income FD schemes.
What happens to FD if the bank fails?
Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits up to ₹5 lakh per depositor per bank (principal + interest). If you have more, split across multiple banks. Nationalized and scheduled commercial banks are safer. Small finance banks have higher risk despite higher returns.
Is FD better than mutual funds or stocks?
FD offers guaranteed returns (6-8%) with zero risk - suitable for emergency funds and short-term goals. Equity mutual funds offer higher returns (12-15% long-term) but with market risk. Ideal portfolio: 40% debt (FD/bonds), 60% equity for balanced growth. FDs are perfect for capital protection, not wealth creation.
What is cumulative vs non-cumulative FD?
Cumulative FD: Interest is reinvested and paid at maturity along with principal - gives higher returns due to compounding. Non-cumulative FD: Interest is paid monthly/quarterly/yearly - suitable for those needing regular income like retirees. Cumulative is better for wealth accumulation, non-cumulative for cash flow needs.