FD Calculator

About the FD Calculator

A fixed deposit (FD) is one of India's most trusted savings instruments, where you deposit a sum with a bank or NBFC for a fixed period at a guaranteed interest rate. Unlike market-linked investments, an FD gives assured returns known in advance, which makes it ideal for capital protection and predictable goals. Interest is usually compounded quarterly, and you can choose to receive it periodically or reinvest it until maturity for the full compounding benefit.

This calculator computes the maturity value using the compound interest formula A = P x (1 + r/m)^(m x t), where P is the principal, r is the annual rate, m is the number of times interest compounds per year and t is the tenure in years. It shows both the maturity amount and the interest earned. A cumulative FD, where interest is reinvested, grows faster than a non-cumulative one that pays interest out regularly.

FD interest is fully taxable as per your income slab, and banks deduct TDS if the interest crosses the annual threshold, so your post-tax return can be noticeably lower than the headline rate. Senior citizens usually earn a higher rate. FDs suit conservative investors and short-to-medium-term goals, but over long horizons their returns may struggle to beat inflation compared with equity, so balance safety against growth.

How to use it

• Choose a cumulative FD to reinvest interest and benefit from full compounding at maturity.
• FD interest is taxable at your slab rate, and TDS applies once interest crosses the threshold.
• Senior citizens typically earn a higher interest rate, often 0.25-0.75% above standard rates.
• Compare rates across banks and small finance banks, but check deposit insurance cover of 5 lakh.