FD Calculator
Calculate maturity amount and interest earned on Fixed Deposits
Year-by-Year Growth Schedule
| Year | Amount (₹) | Interest Earned (₹) |
|---|
What Is an FD Calculator?
An FD calculator shows you how much your fixed deposit will grow over time. It considers the principal amount, interest rate, tenure, and compounding frequency.
How to Use
- Enter the deposit amount you want to invest
- Enter the annual interest rate
- Enter the time period in years
- Select the compounding frequency
- Click "Calculate FD Returns" to see the maturity amount
FD Formula
A = P × (1 + r/n)n×t
Where A is the maturity amount, P is the principal, r is the annual interest rate (as decimal), n is the compounding frequency per year, and t is the tenure in years.
Worked Examples
Short-Term FD - 1 Year
Principal: ₹1,00,000
Rate: 7.5%
Tenure: 1 Year
Compounding: Quarterly
Maturity: ₹1,07,713
Interest: ₹7,713
A short-term FD for 1 year. Great for parking emergency funds.
Medium-Term FD - 5 Years
Principal: ₹1,00,000
Rate: 7.5%
Tenure: 5 Years
Compounding: Quarterly
Maturity: ₹1,44,948
Interest: ₹44,948
A 5-year FD with quarterly compounding. Best for medium-term goals.
Long-Term FD - 10 Years
Principal: ₹1,00,000
Rate: 7.5%
Tenure: 10 Years
Compounding: Quarterly
Maturity: ₹2,09,978
Interest: ₹1,09,978
A long-term 10-year FD. The power of compounding is clearly visible.
Senior Citizen FD
Principal: ₹5,00,000
Rate: 8.0%
Tenure: 5 Years
Compounding: Quarterly
Maturity: ₹7,42,973
Interest: ₹2,42,973
Senior citizens often get higher interest rates (0.5-0.75% higher).
Monthly Compounding
Principal: ₹1,00,000
Rate: 7.5%
Tenure: 5 Years
Compounding: Monthly
Maturity: ₹1,45,428
Interest: ₹45,428
Monthly compounding gives slightly higher returns than quarterly.
Higher Rate Scenario
Principal: ₹1,00,000
Rate: 9.0%
Tenure: 5 Years
Compounding: Quarterly
Maturity: ₹1,55,636
Interest: ₹55,636
A 9% FD rate gives significantly higher returns than 7.5%.
Frequently Asked Questions
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a financial instrument offered by banks where you deposit a lump sum for a fixed period at a predetermined interest rate. The interest is compounded at regular intervals.
How is FD interest calculated?
FD interest is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual interest rate, n is the compounding frequency per year, and t is the tenure in years.
Which compounding frequency is best for FD?
More frequent compounding yields higher returns. Monthly compounding gives the best returns, followed by quarterly, half-yearly, and yearly.
Is FD interest taxable?
Yes, interest earned on FDs is taxable under "Income from Other Sources" as per your income tax slab.
Can I withdraw my FD before maturity?
Yes, you can withdraw your FD before maturity (premature withdrawal). However, banks usually charge a penalty of 0.5% to 1% on the interest rate.
What is the maximum tenure for FD?
Most banks offer FD tenures ranging from 7 days to 10 years. Some banks also offer special long-term FDs for up to 20 years.
Is my FD amount insured?
Yes, in India, deposits up to ₹5,00,000 per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Conclusion
Fixed Deposits are one of the safest investment options in India, offering guaranteed returns with minimal risk. Use this FD calculator to plan your savings, compare different tenures and interest rates, and make informed decisions about your fixed deposit investments.