A Fixed Deposit (FD) calculator computes the maturity amount and interest earned on a bank fixed deposit for a given principal, interest rate, and tenure.
About this calculator
A Fixed Deposit (FD) calculator computes the maturity amount and interest earned on a bank fixed deposit for a given principal, interest rate, and tenure. FDs offer guaranteed returns and are one of the safest investment options in India.
Banks compound FD interest quarterly in India, which means your effective return is slightly higher than the stated annual rate. It accounts for quarterly compounding to give you an accurate maturity value.
Common uses
- Calculate FD maturity amount at a given bank rate
- Compare FD returns across different banks and tenures
- Estimate post-tax FD returns after TDS deduction
- Choose between reinvestment and interest payout FDs
- Plan a financial goal using FD laddering
Frequently asked questions
How is FD interest calculated in India?
Indian banks compound FD interest quarterly: A = P × (1 + r/4)^(4 × t), where P is principal, r is annual rate, and t is tenure in years. This means the effective annual yield is slightly higher than the nominal rate.
Is FD interest taxable?
Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS (Tax Deducted at Source) at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You must declare all FD interest in your ITR even if TDS is not deducted.
What is an FD ladder and why use it?
An FD ladder involves splitting your corpus into multiple FDs with different maturity dates (e.g., 1-year, 2-year, 3-year). This provides periodic liquidity, averages out interest rate risk, and ensures you can access funds without breaking the entire FD.