FD Calculator (Fixed Deposit)

Estimate the maturity value of your fixed deposit investment.

Principal Amount
Total Interest
Maturity Value

Understanding Fixed Deposits (FD)

What is a Fixed Deposit?

A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs where you can invest a lump sum amount for a fixed period at a pre-determined rate of interest. It is considered one of the safest investment options, offering guaranteed returns.

How is FD Interest Calculated?

The interest on an FD is typically compounded quarterly. This means the interest earned in one quarter is added to the principal, and the next quarter's interest is calculated on this new, larger principal. This compounding effect leads to higher returns over time compared to simple interest.

Frequently Asked Questions (FAQ)

Yes, you can prematurely withdraw your FD, but there is usually a penalty. The penalty varies from bank to bank and is typically a reduction in the applicable interest rate. For example, the interest paid might be 0.5% to 1% lower than the contracted rate.

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 also required to deduct TDS (Tax Deducted at Source) if the interest income exceeds a certain threshold in a financial year.

In a Fixed Deposit (FD), you invest a single lump sum amount at the beginning. In a Recurring Deposit (RD), you invest a fixed amount every month for a specific period. FDs are for those with a lump sum to invest, while RDs are for those who wish to save on a monthly basis.