FD Calculator
About FD Calculator
FD Calculator — calculate your Fixed Deposit maturity amount and interest earned. Plan your savings better by understanding how compounding frequency affects your returns with different tenure options.
How to use the FD Calculator
- Enter your deposit amount (e.g., ₹1,00,000).
- Provide the annual interest rate offered by your bank (e.g., 7%).
- Enter the tenure in months or years.
- Choose compounding frequency (Quarterly, Monthly, or Annual).
- Click Calculate to view maturity amount and total interest earned.
Example Calculation
If you invest ₹1,00,000 at 7% annual interest for 5 years with quarterly compounding, your maturity amount would be approximately ₹1,41,478 — earning ₹41,478 as interest.
Understanding FD Components
- Principal — The initial deposit amount.
- Interest Rate — Annual rate offered by the bank, varies by tenure and bank.
- Tenure — Duration for which you lock in your money.
- Compounding Frequency — How often interest is calculated and added to principal. More frequent compounding = higher returns.
- Senior citizens typically get 0.25% to 0.50% higher interest rates.
Tips for Better FD Returns
- Compare rates across banks — even 0.25% difference adds up over time.
- Choose quarterly compounding for better returns than annual.
- Ladder your FDs — split deposits across different tenures for liquidity and rate optimization.
- Consider tax implications — interest is taxable as per your income slab.
FAQs
Is FD interest taxable?
Yes — FD interest is added to your income and taxed as per your slab. Banks deduct TDS if interest exceeds ₹40,000 per year (₹50,000 for senior citizens).
Can I withdraw FD before maturity?
Yes, but you'll pay a penalty (usually 0.5% to 1% lower interest rate) and may lose some interest. Check your bank's premature withdrawal terms.
Which compounding frequency is best?
Quarterly compounding typically offers the best balance between returns and bank offerings. Monthly compounding gives slightly higher returns but may not be available for all FDs.
Use this calculator to compare different FD options and choose the best tenure and bank for your savings goals.