FD Calculator (Fixed Deposit)
See how much your Fixed Deposit will grow — get an estimate of both the maturity amount and the interest earned.
Understanding Fixed Deposits and FD Calculator
💡 Quick Tip: Use our FD calculator to compare different investment scenarios and find the best Fixed Deposit plan for your financial goals.
What is a Fixed Deposit (FD)?
A Fixed Deposit is one of the safest investment options offered by banks and financial institutions. A fixed deposit lets you save a lump sum for a specific time, earning steady interest throughout. Unlike savings accounts, FDs offer higher interest rates and guaranteed returns, making them an excellent choice for conservative investors who prioritize capital protection over high returns.
How Does Our FD Calculator Work?
Our Fixed Deposit calculator uses the compound interest formula to determine your maturity amount. Here's how it calculates your returns:
Maturity Amount = P × (1 + r/n)^(n×t)
- P = Principal amount (your initial investment)
- r = Annual interest rate (as a decimal)
- n = The number of compounding periods within one year
- t = Time period in years
Key Features of Fixed Deposits
✅ Advantages
- • Guaranteed returns with capital protection
- • Higher interest rates than savings accounts
- • Choose from a range of tenure options, anywhere between 7 days and 10 years.
- • Option for premature withdrawal (with penalty)
- • Can be used as collateral for loans
⚠️ Considerations
- • Lower returns compared to market investments
- • Interest is taxable as per income tax slab
- • Penalty for premature withdrawal
- • Returns may not beat inflation in long term
- • Limited liquidity during tenure
Types of Fixed Deposits
Regular Fixed Deposit
Standard FD where you invest a lump sum for a fixed period at a predetermined interest rate.
Tax Saving FD (5-year Lock-in)
Under Section 80C, you can avail a tax deduction of up to ₹1.5 lakh, but the investment comes with a mandatory 5-year lock-in period.
Senior Citizen FD
If you’re 60 or older, you typically get a better interest rate, usually between 0.25% and 0.75% higher.
Cumulative vs Non-Cumulative FD
Cumulative FDs compound interest and pay at maturity, while non-cumulative FDs pay interest periodically.
Smart FD Investment Strategies
💡 Pro Tips for FD Investments
- Laddering Strategy: Split your investment across multiple FDs with different maturity dates to maintain liquidity and benefit from changing interest rates.
- Interest Rate Timing: Consider investing when interest rates are high, as you'll lock in better returns for the entire tenure.
- Compounding Frequency: Choose quarterly or monthly compounding over annual compounding for better returns.
- Renewal Strategy: Auto-renewal might not always offer the best rates; manually renew to negotiate better terms.
- Tax Planning: For high-income individuals, consider spreading FD maturity across financial years to optimize tax liability.
FD vs Other Investment Options
| Investment | Risk Level | Expected Returns | Liquidity |
|---|---|---|---|
| Fixed Deposit | Very Low | 5-8% p.a. | Low (Penalty) |
| PPF | Very Low | 7-8% p.a. | Very Low (15-year lock) |
| Mutual Funds | Medium-High | 10-15% p.a. | High |
| Stocks | High | 12-18% p.a. | High |
Frequently Asked Questions
Can I take out my FD early, and what happens if I do?
You can withdraw early, but it’ll cost you a penalty. If you break your FD early, banks often charge a penalty between 0.5% and 1% on the interest rate, and you’ll get interest only for the period your money was actually deposited.
Is FD interest taxable?
Yes, the interest you earn on an FD is taxable according to your income tax slab. If the interest you earn in a year exceeds ₹40,000 (₹50,000 for senior citizens), the bank will deduct 10% TDS automatically. You can submit Form 15G/15H to avoid TDS if your total income is below taxable limit.
Can I get a loan against my FD?
Yes, most banks offer loans against FD up to 90-95% of the deposit value. The interest rate is typically 1-2% higher than your FD rate. This option helps maintain your FD while accessing funds when needed.
How much do I need at minimum to start an FD?
The minimum amount varies by bank but typically ranges from ₹1,000 to ₹10,000. Some banks offer special FD schemes with even lower minimum amounts to encourage savings habits.
Current FD Interest Rates (Indicative)
Note: Interest rates are subject to change and vary across banks. Please check with your preferred bank for current rates.
General Public
- • 1 year: 5.50% - 6.75%
- • 2-3 years: 6.00% - 7.25%
- • 5 years: 6.25% - 7.50%
Senior Citizens
- • 1 year: 6.00% - 7.25%
- • 2-3 years: 6.50% - 7.75%
- • 5 years: 6.75% - 8.00%
Start Planning Your Fixed Deposit Investment Today!
Use our FD calculator above to explore different investment scenarios and make informed decisions about your Fixed Deposit investments. Remember, while FDs offer safety and guaranteed returns, consider diversifying your portfolio with other investment options for optimal financial growth.