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Fixed Deposit Calculator

Calculate FD maturity amount, interest earned and effective returns for bank fixed deposits

₹
Initial fixed deposit amount
% p.a.
Annual interest rate offered by bank
Fixed deposit duration
Most banks compound quarterly
%
Your income tax slab rate for TDS calculation
🏦 Popular FD Options:
💡 FD Tips:
  • 📈 Compare rates: Different banks offer different rates
  • 👴 Senior citizens: Get 0.5% extra interest
  • 💰 TDS: Tax deducted if interest > ₹40K annually
  • ⏰ Laddering: Split deposits across different tenures
🏦 Current FD Rates (Indicative)

SBI: 7.0% - 7.4%

HDFC: 7.25% - 8.0%

ICICI: 7.5% - 8.25%

Axis: 7.75% - 8.5%

Kotak: 7.5% - 8.75%

Small Finance: 8% - 9%

*Rates vary by tenure and amount. Check latest rates with banks.

Fixed Deposit Features & Benefits

✅ FD Advantages

  • 🛡️ Capital Protection: 100% principal safety
  • 📈 Guaranteed Returns: Fixed interest rate
  • 🏦 Bank Assurance: Backed by bank reputation
  • 💰 Deposit Insurance: Up to ₹5L DICGC cover
  • ⏰ Flexible Tenure: 7 days to 10 years
  • 🎯 Easy Planning: Predictable maturity amount

⚠️ FD Disadvantages

  • 📉 Inflation Risk: Returns may not beat inflation
  • 🔒 Liquidity Lock: Early withdrawal penalties
  • 💸 Tax Impact: Interest fully taxable
  • 📊 Lower Returns: Compared to equities long-term
  • 🏦 Rate Risk: Fixed rate in rising rate scenario
  • 💰 TDS: 10% TDS if interest > ₹40K

Complete Guide to Fixed Deposit (FD) Calculation

A Fixed Deposit (FD) is one of the safest and most popular investment instruments in India, offered by banks and Non-Banking Financial Companies (NBFCs). It allows you to deposit a lump sum amount for a fixed period at a predetermined interest rate. Our Free FD Calculator helps you instantly compute your exact maturity amount, total interest earned, and the effective yield on your investment before you visit the bank.

How Does Our FD Calculator Work?

Using our calculator is simple and requires zero financial expertise. Just follow these steps:

  1. Enter Deposit Amount: This is the initial principal sum you wish to invest (e.g., ₹1,00,000).
  2. Input Interest Rate: Enter the annual interest rate provided by your bank. Senior citizens typically receive 0.50% to 0.75% higher rates.
  3. Select Tenure: Choose the duration of your deposit in months, years, or days.
  4. Choose Compounding Frequency: Most Indian banks compound FD interest quarterly. However, you can select Monthly, Half-yearly, or Yearly based on your specific bank's policy.
  5. (Optional) Enter Tax Slab: FD interest is fully taxable. Enter your tax slab to see the exact TDS and net in-hand maturity amount.

The Mathematical Formula Behind FD Calculations

When you invest in a cumulative Fixed Deposit, the bank calculates interest using the compound interest formula. Here is the exact mathematical model our calculator uses:

A = P(1 + r/n)(n*t)

  • A = Final Maturity Amount
  • P = Principal Amount (Initial Deposit)
  • r = Annual Interest Rate (in decimal form, e.g., 7% is 0.07)
  • n = Number of compounding periods per year (Quarterly = 4)
  • t = Total tenure in years

Understanding Tax Deducted at Source (TDS) on FDs

It's crucial to understand that Fixed Deposit returns are not completely tax-free. According to current Indian Income Tax laws:

  • If your total interest income from FDs across all branches of a bank exceeds ₹40,000 in a financial year (₹50,000 for Senior Citizens), the bank will deduct a 10% TDS.
  • If you fall into the 20% or 30% tax bracket, you must pay the remaining tax when filing your ITR (Income Tax Return).
  • If your total income is below the taxable limit, you can submit Form 15G (Form 15H for senior citizens) to the bank to request them not to deduct TDS.

Frequently Asked Questions (FAQs)

Quarterly compounding yields higher returns than yearly compounding. The more frequently interest is calculated and added to your principal, the faster your money grows, because you begin earning "interest on your interest" sooner.

A Tax Saver FD is a special fixed deposit with a mandatory 5-year lock-in period. Investments up to ₹1.5 lakh in this FD qualify for tax deductions under Section 80C of the Income Tax Act. However, premature withdrawals are strictly prohibited.

Yes, most banks allow premature withdrawals for regular FDs. However, they usually charge a penalty ranging from 0.5% to 1% on the applicable interest rate for the duration the deposit was actually held.
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About the Author

B. KUMAR

Founder of Discount Calculator

B. KUMAR is a seasoned developer and retail data analyst with over a decade of experience building custom e-commerce infrastructure and financial calculators. Passionate about consumer rights and digital literacy, he builds tools to help Indians decode complex marketing algorithms and make informed financial decisions.

✔ Calculator Development ✔ Financial Utility Tools ✔ PHP & JavaScript Development
Last Reviewed: August 2026