Fixed Deposit (FD) Calculator
Calculate interest and maturity amount for Fixed Deposits with different payout options
FD Investment Results
Interest Earned
₹24,230
Maturity Amount
₹124,230
Effective Rate
7.50%
Principal Amount
₹100000
Wealth Multiplier
1.24x
Investment Breakdown
Payout Comparison
| Payout Type | Interest | Maturity Amount | Effective Rate |
|---|---|---|---|
| cumulative | ₹24,230 | ₹124,230 | 7.50% |
| monthly | ₹22,500 | ₹122,500 | 7.00% |
| quarterly | ₹22,500 | ₹122,500 | 7.00% |
| yearly | ₹22,500 | ₹122,500 | 7.00% |
💡 FD Investment Tips
- • Compare rates across different banks and NBFCs
- • Consider cumulative option for higher returns
- • Check for premature withdrawal penalties
- • Look for senior citizen benefits (higher rates)
- • Consider laddering FDs for better liquidity
Understanding Fixed Deposits (FD)
What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument offered by banks and financial institutions where you deposit a lump sum amount for a fixed period at a predetermined interest rate. The interest rate remains constant throughout the tenure, providing predictable returns on your investment.
FDs are considered one of the safest investment options as they offer guaranteed returns and are backed by the bank's credibility. They are ideal for conservative investors who prioritize capital protection over high returns.
Types of Fixed Deposits
💰 Regular FD
Standard fixed deposits with interest paid at maturity. Higher interest rates for longer tenures.
📈 Cumulative FD
Interest is reinvested and paid at maturity, providing higher returns through compounding.
⚡ Non-Cumulative FD
Interest is paid monthly, quarterly, or annually. Suitable for regular income needs.
🎯 Tax-Saving FD
Special FDs with 5-year lock-in period that qualify for tax deduction under Section 80C.
FD vs Other Investment Options
✅ FD Advantages
- • Guaranteed returns
- • Capital protection
- • Predictable income
- • Easy to understand
- • No market risk
📈 Other Options
- • Higher potential returns (equity)
- • Tax efficiency (mutual funds)
- • Liquidity (savings account)
- • Inflation protection (gold)
- • Market-linked returns
How FD Calculator Works
Our FD calculator uses the compound interest formula to calculate your returns:
Formula: A = P × (1 + r/n)^(n×t)
Where: A = Maturity Amount, P = Principal, r = Annual Rate, n = Compounding Frequency, t = Time in Years
The calculator considers your principal amount, interest rate, tenure, and compounding frequency to show you the total interest earned and final maturity amount.
FD Investment Strategy
🎯 Ladder Strategy
Invest in multiple FDs with different tenures (3 months, 6 months, 1 year, etc.) to create a regular income stream while maintaining liquidity.
📊 Rate Comparison
Compare FD rates across different banks and NBFCs. Small finance banks often offer higher rates than large commercial banks.
⏰ Tenure Planning
Choose FD tenure based on your financial goals. Longer tenures offer higher rates but reduce liquidity. Consider your cash flow needs.
Tax Implications of FD
Interest Income
FD interest is fully taxable as per your income tax slab
TDS Deduction
10% TDS if interest exceeds ₹40,000 (₹50,000 for senior citizens)
Tax-Saving FD
Up to ₹1.5 lakhs deductible under Section 80C
FD Investment Tips
- •Compare rates: Check rates from multiple banks and NBFCs before investing
- •Consider premature withdrawal: Check penalty charges before investing
- •Joint account benefits: Consider joint FD for better tax planning
- •Auto-renewal: Set up auto-renewal to avoid reinvestment delays
- •Diversify: Don't put all money in one FD or one bank