Fixed Deposit Calculator

What is a Fixed Deposit (FD)?

A Fixed Deposit is a financial instrument offered by banks where you deposit a lump sum for a fixed tenure at a guaranteed interest rate. It is one of the safest investment options in India, with returns unaffected by market fluctuations.

FD Compound Interest Formula

The maturity amount of an FD is calculated using:

A = P × (1 + r/n)^{n × t}

A = Maturity Amount
P = Principal Amount
r = Annual Interest Rate (as a decimal)
n = Compounding Frequency per year (1 = annual, 4 = quarterly, 12 = monthly)
t = Tenure in years

Example Calculation

For ₹1,00,000 deposited at 7% p.a. for 5 years (quarterly compounding):

A = 1,00,000 × (1 + 0.07/4)^4×5
A = 1,00,000 × (1.0175)²⁰ = ₹1,41,478
Interest Earned = ₹41,478

Frequently Asked Questions

More frequent compounding yields slightly higher returns. Monthly compounding gives the highest returns, followed by quarterly, half-yearly, and annual. Most Indian banks compound FDs quarterly.

Yes. FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your income is below the taxable limit.

Most banks allow FDs starting from ₹1,000. However, some banks may have higher minimums. There is no upper limit on FD deposits.

Fixed Deposit Calculator