About the Fixed Deposit (FD) Calculator

A Fixed Deposit (FD) is one of the safest and most popular investment instruments in India, offered by banks and non-banking financial companies (NBFCs). It provides a higher rate of interest than a regular savings account and guarantees returns. Our FD calculator helps you determine the maturity amount and the total interest you will earn by investing a lumpsum amount for a specific period at a fixed interest rate.

How is the FD Maturity Value Calculated?

The interest on a Fixed Deposit is typically compounded. This means the interest earned in a period is added to the principal, and this new, larger principal earns interest in the next period. Most banks in India compound interest on a quarterly basis. The formula for compound interest is:

• A: The maturity amount.
• P: The principal amount.
• r: The annual interest rate (in decimal form).
• n: The number of times interest is compounded per year (e.g., 4 for quarterly).
• t: The tenure in years.

Frequently Asked Questions (FAQ)

What is a Fixed Deposit?

A Fixed Deposit is a financial instrument where you deposit a lump sum of money for a fixed period at a pre-determined rate of interest. At the end of the tenure, you receive the principal amount along with the accumulated interest.

Is the interest earned on an FD taxable?

Yes, the interest earned on a Fixed Deposit is fully taxable. It is added to your total income and taxed as per your applicable income tax slab. Banks are required to deduct Tax at Source (TDS) at 10% if the interest income from all FDs in a financial year exceeds ₹40,000 (₹50,000 for senior citizens).

What is Form 15G/15H?

If your total annual income is below the taxable limit, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to the bank at the beginning of the financial year. This requests the bank not to deduct TDS on your interest income.

Can I break my FD before maturity?

Yes, most banks allow premature withdrawal of FDs. However, they usually charge a penalty for it, which is typically a reduction in the applicable interest rate (e.g., 0.5% to 1% lower than the rate for the period the deposit was actually held).

What is a Tax-Saving FD?

A tax-saving FD is a special type of Fixed Deposit that comes with a lock-in period of 5 years. The investment made in this FD (up to ₹1.5 lakh per year) is eligible for tax deduction under Section 80C of the Income Tax Act. The interest earned, however, remains taxable.

Are Fixed Deposits safe?

FDs are considered very safe. Deposits in all commercial banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary. Each depositor is insured up to a maximum of **₹5,00,000** for both principal and interest amount held in the same right and capacity.