Fixed Deposit Calculator
Estimate your FD returns, compare scenarios, and understand how compounding, inflation, and taxes affect your savings—all in one place.
Deposit Details
Applies additional interest rate (typically +0.50%)
Deposit Growth
Principal vs Interest
Smart Insights
Explore how different factors affect your Fixed Deposit returns
Year-wise Growth Breakdown
Watch your deposit grow year by year
Year-wise Value Table
Complete year-by-year breakdown of your Fixed Deposit
| Year | Opening Balance | Interest Earned | Closing Balance | Cumulative Interest |
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Understanding Fixed Deposits
What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument offered by banks and non-banking financial companies (NBFCs) where you deposit a lump sum for a fixed period at a predetermined interest rate. FDs are considered one of the safest investment options as they offer guaranteed returns regardless of market fluctuations.
How FD Interest is Calculated
FD interest is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t), where A is the maturity amount, P is the principal, r is the annual interest rate, n is the compounding frequency, and t is the time period. The compounding frequency — monthly, quarterly, half-yearly, or yearly — affects how quickly your money grows.
Types of FD
- Cumulative FD: Interest is compounded and paid at maturity along with the principal. Best for wealth accumulation.
- Non-Cumulative FD: Interest is paid out at regular intervals (monthly, quarterly, or yearly). Ideal for regular income.
- Tax-Saver FD: Comes with a 5-year lock-in period and tax benefits under Section 80C.
- Senior Citizen FD: Offers higher interest rates (typically 0.25% to 0.75% more).
Benefits of FD
- Guaranteed Returns: Fixed interest rate with no market risk
- Flexible Tenure: Choose from 7 days to 10 years
- Regular Income: Non-cumulative options for steady payouts
- Loan Facility: Use FD as collateral for loans (up to 90% of value)
- Insured: Covered by deposit insurance up to ₹5 lakh
Risks to Consider
- Inflation Risk: Returns may not outpace inflation, reducing real value
- Interest Rate Risk: Locking in at low rates when rates may rise
- Liquidity Risk: Premature withdrawal may incur penalties
- Reinvestment Risk: Upon maturity, reinvestment may be at lower rates
Taxation of FD
Interest earned on FDs is fully taxable as per your income tax slab. TDS (Tax Deducted at Source) is deducted if interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Premature Withdrawal
Most banks allow premature withdrawal of FDs but charge a penalty — typically 0.5% to 1% of the interest rate. Some FDs have a mandatory lock-in period. Tax-Saver FDs have a 5-year lock-in and cannot be withdrawn prematurely.
Cumulative vs Non-Cumulative
In cumulative FDs, interest compounds and you receive a larger lump sum at maturity — ideal for long-term goals. In non-cumulative FDs, interest is paid out regularly, providing steady income — suitable for retirees or regular income needs. The choice depends on whether you want wealth accumulation or regular cash flow.
Frequently Asked Questions
What is the minimum deposit for FD?
Most banks offer FDs starting from ₹1,000. Some banks may have higher minimums for specific tenures or special schemes.
Can I add more money to an existing FD?
Most FDs do not allow additional deposits once opened. You would need to open a new FD for additional funds. However, some banks offer flexible FDs that allow incremental deposits.
What happens when FD matures?
Upon maturity, you can choose to withdraw the amount, renew the FD for another term, or let it auto-renew. Many banks offer auto-renewal facilities with the prevailing interest rate.
Is FD better than mutual funds?
FDs offer guaranteed returns with no market risk, making them suitable for conservative investors. Mutual funds potentially offer higher returns but carry market risk. The choice depends on your risk tolerance and financial goals.
How is FD interest taxed?
FD interest is added to your total income and taxed as per your income tax slab. Banks deduct TDS at 10% if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a year. Submit Form 15G/15H if your total income is below the taxable limit.
What is the interest rate for senior citizens?
Most banks offer 0.25% to 0.75% higher interest rates to senior citizens (60 years and above) on FDs. Some banks have even higher rates for very senior citizens (80+ years).
Can I take a loan against my FD?
Yes, most banks offer loans against FD at attractive interest rates (typically 1-2% above the FD rate). You can get up to 90% of the FD amount as a loan while the FD continues to earn interest.
What is TDS on FD interest?
TDS (Tax Deducted at Source) is 10% on FD interest exceeding ₹40,000 per year (₹50,000 for senior citizens). If you don't have a PAN, TDS is deducted at 20%. The TDS amount can be claimed as credit when filing your income tax return.