Fixed Deposit (FD) Calculator
Calculate your maturity amount and interest earned on your Fixed Deposit. Plan your safe investments accurately.
FD Details
* Banks in India typically compound FD interest quarterly.
Maturity Amount
Total value at maturity
Invested Amount
Principal
Total Interest
Wealth gained
Investment Breakdown
FD Summary
Understanding Fixed Deposits (FD)
A Fixed Deposit (FD) is a secure investment instrument offered by banks, post offices, and non-banking financial companies (NBFCs). It allows you to deposit a lump sum amount for a fixed tenure at a predetermined interest rate.
How is FD Interest Calculated?
Most banks in India compound FD interest quarterly. This means the interest earned in one quarter is added to the principal, and in the next quarter, you earn interest on this new, higher principal.
- A = Maturity Amount
- P = Principal Amount
- r = Annual Interest Rate (in decimal)
- n = Compounding frequency per year (4 for quarterly)
- t = Time period in years
Taxation on FD Interest
The interest earned on an FD is fully taxable under the head "Income from Other Sources" according to your income tax slab rate.
- TDS (Tax Deducted at Source): Banks deduct 10% TDS if the interest earned across all FDs in a branch exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
- Form 15G/15H: If your total income is below the taxable limit, you can submit Form 15G (or Form 15H for senior citizens) to the bank to request them not to deduct TDS.
Frequently Asked Questions
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It is one of the safest investment options.
How is FD interest calculated?
FD interest in India is typically compounded quarterly. The formula used is A = P(1 + r/n)^(n*t), where A is Maturity Amount, P is Principal, r is annual interest rate, n is compounding frequency (4 for quarterly), and t is time in years.
Is FD interest taxable?
Yes, the interest earned on a Fixed Deposit is fully taxable according to your income tax slab. If the interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank will deduct TDS at 10% before crediting the interest.
Can I withdraw my FD before maturity?
Yes, most banks allow premature withdrawal of FDs, but they usually charge a penalty (typically 0.5% to 1%) on the interest rate applicable for the period the deposit was held.