FD Calculator
Calculate Fixed Deposit maturity amount and interest earned
Maturity Amount
₹1,41,478
Principal
₹1,00,000
Interest Earned
₹41,478
Effective Annual Yield
7.19%
Year-wise Growth
| Year | Interest Earned | Total Value |
|---|---|---|
| Year 1 | ₹7,186 | ₹1,07,186 |
| Year 2 | ₹14,888 | ₹1,14,888 |
| Year 3 | ₹23,144 | ₹1,23,144 |
| Year 4 | ₹31,993 | ₹1,31,993 |
| Year 5 | ₹41,478 | ₹1,41,478 |
Fixed Deposit Guide — Safe, Guaranteed Returns Explained
A Fixed Deposit (FD) is the most popular savings instrument in India, trusted by millions for its safety, guaranteed returns, and simplicity. Unlike market-linked investments, an FD guarantees your principal and interest regardless of market conditions, making it ideal for risk-averse investors and short-to-medium term financial goals.
How FD Interest is Calculated
FD interest uses 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 number of times interest is compounded per year, and t is the tenure in years. The more frequently interest is compounded, the higher the effective yield.
Types of Fixed Deposits
Regular FD: Standard FD with flexible tenure from 7 days to 10 years. Interest rates vary by tenure and bank.
Tax-Saving FD: 5-year lock-in FD eligible for Section 80C deduction up to ₹1.5 lakh. No premature withdrawal allowed.
Senior Citizen FD: Banks offer 0.25%–0.5% higher interest rates for depositors aged 60 and above.
Corporate FD: Offered by NBFCs and companies, typically at higher rates but with higher risk than bank FDs.
Flexi FD: Linked to a savings account, allowing automatic sweep of excess funds into FD for higher returns.
Cumulative vs Non-Cumulative FD
In a cumulative FD, interest is compounded and added to the principal, paid out at maturity. This maximizes returns through compounding and is ideal for long-term goals. In a non-cumulative FD, interest is paid out at regular intervals (monthly, quarterly, half-yearly, or annually), providing a regular income stream — ideal for retirees.
Tax Treatment of FD Interest
FD interest is added to your total income and taxed at your applicable slab rate. Banks deduct TDS at 10% if your total FD interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G (or 15H for seniors) to avoid TDS deduction.
FD vs Other Investment Options
FD vs Savings Account: FDs offer significantly higher interest (6–8%) compared to savings accounts (3–4%). The trade-off is liquidity — FDs have a lock-in period.
FD vs Mutual Funds: FDs guarantee returns; mutual funds offer potentially higher returns but with market risk. For goals within 3 years, FDs are generally safer. For 5+ year goals, equity mutual funds typically outperform.
FD vs PPF: PPF offers tax-free returns and Section 80C benefits but has a 15-year lock-in. FDs are more flexible with shorter tenures.
Strategies to Maximize FD Returns
- FD Laddering: Split your investment across multiple FDs with different maturities to balance liquidity and returns.
- Reinvest at maturity: Reinvesting the maturity amount (principal + interest) compounds your wealth further.
- Compare rates: Small finance banks and some private banks offer higher rates than large public sector banks.
- Senior citizen benefit: If a family member is a senior citizen, booking FD in their name gets a higher rate.