FD Calculator

An FD calculator computes the maturity value of a fixed deposit based on your principal, interest rate, tenure, and compounding frequency.

Most banks compound interest quarterly. Monthly compounding gives slightly higher returns, while simple interest is used by some post offices.

For compound interest: A = P × (1 + r/n)^(nt), where n is the number of compounding periods per year.

Yes. FD interest is added to your income and taxed at your applicable slab rate. TDS at 10% is deducted if interest exceeds ₹40,000 in a year (₹50,000 for seniors).

TDS stands for Tax Deducted at Source. Banks deduct it automatically when FD interest exceeds the annual threshold.

Small finance banks often offer higher rates (8–9%), while large public sector banks typically offer 6.5–7.5%. Always compare effective annual yield, not just the nominal rate.

Yes, premature withdrawal is allowed but usually attracts a penalty (0.5–1% lower rate). This calculator assumes full-tenure returns.

The effective annual yield accounts for compounding within a year. A 7% FD compounded quarterly has an EAY of about 7.19%.

FD is better if you have a lump sum. RD is better for regular monthly savings. Both are equally safe, backed by DICGC up to ₹5 Lakhs.

DICGC insures bank deposits up to ₹5 Lakhs per depositor per bank. Amounts above this are not insured if the bank fails.

Tax-saving FDs (5-year lock-in) qualify for 80C deductions. However, the interest earned is still taxable.

PPF interest is completely tax-free, making the post-tax return significantly better than FD for higher tax brackets, even if the nominal FD rate is higher.