Free Fixed Deposit calculator to calculate returns, interest earned, and maturity amounts for your FD investments.
Compare different bank FD rates, tenures, and compounding frequencies to maximize your fixed deposit returns.
Plan your investments with detailed analysis of quarterly, half-yearly, and yearly compounding options.
Enter your principal amount (FD investment amount)
Select the interest rate offered by the bank
Choose the investment period (tenure in months or years)
Select the compounding frequency (quarterly, half-yearly, yearly)
Select your tax bracket for accurate after-tax returns
Optional: Include senior citizen rates if applicable
Click 'Calculate' to see maturity amount, interest earned, and effective yield
Compare multiple FD options to find the best returns
₹5,00,000 for 2 years at 7.2% interest with quarterly compounding
₹10,00,000 for 5 years at 7.8% (0.5% extra for senior)
₹2,00,000 for 6 months at 6.5% interest with monthly compounding
₹1,50,000 for 5 years at 7.1% under Section 80C
₹3,00,000 for 3 years: Bank FD 7.0% vs Corporate FD 8.2%
Create a secure emergency fund using FDs with guaranteed returns. Calculate how much to invest to reach your target emergency fund amount.
Plan for upcoming expenses like vacations, home renovations, or vehicle purchases by investing in term deposits that align with your timeline.
Use FDs for conservative portions of your retirement portfolio, ensuring guaranteed returns and capital preservation near retirement age.
Plan regular income streams in retirement through senior citizen FDs with higher interest rates and quarterly interest payout options.
Utilize 5-year tax-saving FDs under Section 80C to reduce taxable income while building long-term savings with guaranteed returns.
Fixed Deposits (FDs) are secure investment instruments where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. Unlike savings accounts, FDs offer higher interest rates because your money is locked in for a specific period. The interest can be paid out periodically or reinvested (compounded) until maturity, depending on your preference and bank policies.
The power of compounding significantly impacts FD returns. When interest is compounded quarterly, each quarter's interest is added to the principal, and the next quarter's interest is calculated on this increased amount. This creates a snowball effect where you earn interest on your previously earned interest, resulting in higher overall returns than simple interest calculations.
FDs offer different compounding frequencies: monthly, quarterly, half-yearly, and yearly. Quarterly compounding is most common among banks. The compounding frequency affects the effective yield - more frequent compounding results in slightly higher returns. Understanding these nuances helps investors choose the best FD options and maximize their returns while maintaining capital safety.
Not considering tax implications
FD interest is fully taxable as per your income tax slab. Consider tax implications when comparing FD returns with other investment options like debt mutual funds or tax-free bonds.
Ignoring senior citizen benefits
Senior citizens typically get 0.25-0.75% additional interest. Always check and apply for senior citizen rates if eligible to maximize your returns.
Not comparing compounding frequencies
Compare FDs with different compounding frequencies. Quarterly or monthly compounding yields slightly higher returns than annual compounding for the same interest rate.
Breaking FDs prematurely
Avoid premature withdrawal as it attracts penalty charges (typically 0.5-1% reduction in interest rate). Plan your FD tenures carefully to match your liquidity needs.
Not diversifying across tenures
Create an FD ladder with different maturity dates to balance liquidity needs with interest rate optimization. This strategy also helps manage interest rate fluctuations.
Overlooking inflation impact
Consider inflation when planning long-term FDs. Real returns = FD interest rate - inflation rate. Ensure your investment beats inflation for real wealth creation.
Simple interest is calculated only on the principal amount, while compound interest includes interest earned on previously accumulated interest. Compound interest generates higher returns over the same period.
FD interest is fully taxable as per your income tax slab and is taxed on an accrual basis (when earned, not when received). Banks deduct TDS at 10% if interest exceeds ₹40,000 annually (₹50,000 for senior citizens).
Premature withdrawal attracts penalty charges, typically reducing the applicable interest rate by 0.5-1%. Some banks may also charge additional withdrawal fees. It's generally advisable to avoid breaking FDs early.
Monthly compounding provides the highest returns, followed by quarterly, half-yearly, and annual compounding. However, the difference is usually small - less than 0.1-0.2% for typical FD rates.
Yes, FDs are among the safest investment options. Bank FDs are insured up to ₹5,00,000 per depositor per bank by DICGC. Corporate FDs carry slightly higher risk but offer higher interest rates.
FDs offer guaranteed returns but are fully taxable. Debt mutual funds offer potentially higher returns with indexation benefits for long-term holdings. Choose based on your risk appetite, tax situation, and return expectations.
Minimum FD amounts start from ₹1,000 to ₹10,000 depending on the bank. There's usually no maximum limit, though very large amounts (₹1 crore+) may require special documentation and offer different rates.
Yes, most banks offer loans against FDs up to 90-95% of the FD value at interest rates 1-2% above the FD rate. This is a good option for emergency funds as you avoid breaking your FD prematurely.