FD Calculator

What is a fixed deposit?

A fixed deposit (FD) is a savings product offered by banks, post offices and NBFCs. You deposit a lumpsum amount for a fixed tenure and the bank pays you a fixed interest rate. The rate does not change during the tenure, so your return is guaranteed.

FDs are among the safest investment options in India. Bank deposits up to ₹5 lakh per bank are insured by DICGC.

FD interest calculation formula

For compound interest FDs (most bank FDs are compounded quarterly):

A = P × (1 + r/n)^(n × t)

• A = Maturity amount
• P = Principal deposit
• r = Yearly interest rate (decimal)
• n = Number of compounding periods per year (4 for quarterly)
• t = Tenure in years

For simple interest FDs (tenure of 6 months or less, or deposits in days): A = P + (P × r × t).

Example: ₹1,00,000 for 5 years at 6.5% compounded quarterly gives a maturity amount of ₹1,38,042. Total interest earned is ₹38,042. You can enter the time period in years, months or days.

Types of fixed deposits

• Cumulative FD: interest is added to the principal and paid at maturity. Best for growing your money.
• Non-cumulative FD: interest is paid monthly, quarterly or yearly. Best for regular income.
• Tax saving FD: 5 year lock-in with Section 80C deduction up to ₹1.5 lakh.
• Senior citizen FD: usually 0.25% to 0.50% extra interest.

Tax on FD interest

FD interest is added to your income and taxed as per your slab. Banks deduct TDS at 10% if the interest in a year is more than ₹50,000 (₹1 lakh for senior citizens). You can submit Form 15G/15H if your total income is below the taxable limit.