FD Calculator – Plan Your Fixed Deposit Returns Online
A Fixed Deposit (FD) is one of the most reliable and widely used investment options in India. It offers guaranteed returns, complete safety of capital, and flexibility in tenure. Unlike market-linked investments, FDs provide a fixed interest rate, making them ideal for individuals who prefer stable earnings. Our FD calculator is a smart tool that helps you estimate your maturity value and total interest earned before you invest, so you can plan your finances with clarity.
How to Use the FD Calculator
Our online FD calculator is designed to give you accurate results in seconds. Here’s how to use it:
- Enter Deposit Amount: Input the principal amount you plan to invest.
- Enter Interest Rate: Provide the annual interest rate your bank offers.
- Select Tenure: Choose the duration of your FD (in months or years).
- Compounding Frequency: Select whether interest is compounded monthly, quarterly, half-yearly, or annually. Most banks in India use quarterly compounding.
- Senior Citizen Option: If applicable, tick the senior citizen box to include the extra interest rate benefit (usually 0.25% – 0.75%).
- View Results: Instantly see:
- Total Investment
- Total Interest Earned
- Final Maturity Value
What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument where you invest a lump sum with a bank or NBFC for a fixed period at a predetermined interest rate. At maturity, you receive your principal plus interest. FDs are considered low-risk investments and are especially popular among conservative investors who value security over high returns.
Formula Used in FD Calculator
The calculator uses the compound interest formula to determine your maturity value:
A = P × (1 + r/n)(n×t)
Where:
- A = Maturity Amount
- P = Principal Amount
- r = Annual Interest Rate (in decimal form)
- n = Number of times interest is compounded per year
- t = Tenure in years
Total Interest Earned = A – P
Impact of Compounding
The frequency of compounding directly affects your earnings. For example, an FD of ₹1,00,000 at 8% for 1 year gives:
- Annual Compounding: ₹8,000 interest
- Semi-Annual Compounding: ₹8,160 interest
- Quarterly Compounding: ₹8,243 interest
- Monthly Compounding: ₹8,300 interest
Clearly, more frequent compounding means higher returns.
Factors to Consider Before Investing in an FD
- Bank Interest Rates: Compare across banks/NBFCs as rates vary.
- Tenure: FDs are available from 7 days to 10 years. Longer tenures usually fetch higher rates.
- Senior Citizen Benefits: Extra 0.25% – 0.75% interest for senior citizens.
- Taxation: Interest earned is taxable. TDS applies if yearly interest exceeds ₹40,000 (₹50,000 for senior citizens).
- Premature Withdrawal: Breaking an FD before maturity may attract a penalty (usually 0.5% – 1%).
FAQs on FD Calculator
1. Is an FD safe?
Yes, FDs are considered one of the safest investment instruments in India, backed by banks and NBFCs.
2. What is the difference between cumulative and non-cumulative FD?
In cumulative FD, interest is compounded and paid at maturity. In non-cumulative FD, interest is paid periodically (monthly/quarterly/annually).
3. Can I use this FD calculator for free?
Yes, our FD calculator online is 100% free and unlimited.
4. Do senior citizens really get higher FD rates?
Yes, most banks offer 0.25% – 0.75% extra interest to senior citizens, which is factored in by our calculator.
5. Is FD interest taxable?
Yes, interest from FD is taxable as per your income tax slab. TDS is applicable if annual interest exceeds the threshold.
Conclusion
A Fixed Deposit calculator helps you plan smarter by giving you a clear picture of your returns. It allows you to compare FD schemes, choose the right tenure, and maximize your earnings. If you want secure, guaranteed, and risk-free returns, use our FD calculator today and make informed investment decisions.
Try the FD Calculator Now