FD Calculator
Calculate your Fixed Deposit Maturity Value.
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%
Years
Most banks compound interest quarterly.
Total Maturity Value
₹ 0
Invested Amount
₹ 0
Total Interest Earned
₹ 0
Year-by-Year Breakdown
| Year | Opening Balance | Interest Earned | Closing Balance |
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What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a safe investment option offered by banks and NBFCs. You deposit a lump sum amount for a fixed period at a pre-agreed interest rate. It offers higher returns than a regular savings account.
How is FD Interest Calculated?
FD interest is calculated using the compound interest formula. The frequency of compounding matters significantly.
A = P (1 + r/n) ^ (nt)
- P: Principal Amount
- r: Rate of Interest (decimal)
- n: Compounding Frequency (e.g., 4 for quarterly)
- t: Time in Years
Taxation on FD Interest
Interest earned on FDs is fully taxable as per your income tax slab.
- TDS: Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for seniors).
- Form 15G/H: Submit these forms to avoid TDS if your total income is below the taxable limit.
Frequently Asked Questions
Q. What is a Tax-Saving FD?
A Tax-Saving FD has a lock-in period of 5 years and qualifies for tax deduction under Section 80C (up to ₹1.5 Lakhs).
Q. Can I withdraw my FD before maturity?
Yes, but banks usually charge a penalty (0.5% to 1%) on the interest rate for premature withdrawal.