FD Calculator
Calculate fixed deposit maturity amount and interest earned.
Principal Amount
₹1,00,000
Est. Interest
₹38,041
Total Maturity Value
₹1,38,041
Understanding Fixed Deposit (FD) Returns in India
A Fixed Deposit (FD) is one of the most secure and popular investment options offered by banks and non-banking financial companies (NBFCs) in India. When you open an FD, you deposit a lump sum amount for a fixed tenure ranging from 7 days to 10 years at a predetermined interest rate. Our online FD calculator helps you accurately determine the exact maturity value and interest earned on your deposit.
Quarterly Compounding Formula
According to RBI guidelines, Indian banks compound FD interest on a quarterly rest basis:
Where M is Maturity Amount, P is Principal, r is annual rate, and n is tenure in years.
Why Use an Online FD Calculator?
- Instant Accuracy: Avoid complex manual calculations and compounding errors.
- Tenure Comparison: Compare 1-year, 3-year, and 5-year returns instantly.
- Financial Planning: Plan your future liquidity and tax-saving strategies effectively.
Frequently Asked Questions (FAQs)
What is the difference between Cumulative and Non-Cumulative FDs?
In a Cumulative FD, the interest earned is reinvested quarterly and paid out together with the principal at maturity, giving you the benefit of compounding. In a Non-Cumulative FD, the interest is paid out periodically (monthly, quarterly, half-yearly, or annually) to provide a regular income stream.
Is interest earned on Fixed Deposits taxable in India?
Yes, FD interest is fully taxable under the head 'Income from Other Sources' according to your income tax slab. Additionally, banks deduct 10% TDS (Tax Deducted at Source) if your total interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens under Section 80TTB).
How can I avoid TDS deduction on my FD interest?
If your total annual income is below the basic exemption limit (not liable to pay income tax), you can submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens aged 60 and above) to your bank at the start of the financial year to request zero TDS deduction.
Frequently Asked Questions
How is FD interest calculated?
FD interest is typically calculated using the compound interest formula: A = P(1 + r/n)^(n*t), where n is the compounding frequency (quarterly by default in India).
What is the difference between simple and compound interest in FD?
Simple interest is paid out periodically (e.g., monthly or yearly), while compound interest is re-invested into the principal, allowing you to earn interest on your interest.
Is FD interest taxable?
Yes, the interest earned on Fixed Deposits is fully taxable as per your income tax slab. Banks also deduct TDS if the interest exceeds a certain limit (₹40,000 for non-senior citizens).