FD Calculator
Calculate your fixed deposit maturity amount with compound interest.
Fixed Deposit Calculator
What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum amount with a bank or financial institution for a fixed period at a predetermined interest rate. Unlike regular savings, FDs offer higher interest rates in exchange for locking your money for the chosen tenure. The interest compounds based on the frequency selected (monthly, quarterly, or yearly).
This calculator helps you find
- •How much will my deposit grow with compound interest?
- •What will be my maturity amount after the tenure?
- •How does compounding frequency affect my returns?
Best for
- •Risk-averse investors seeking guaranteed returns
- •Those planning for short to medium-term goals
- •Anyone looking for a safe investment option
A Fixed Deposit (FD) calculator helps you estimate the maturity amount and interest earned on your fixed deposit investment. FDs are one of the safest investment options, offering guaranteed returns at a predetermined interest rate for a fixed tenure.
FDs are offered by banks and non-banking financial companies (NBFCs). They are ideal for risk-averse investors who want predictable returns. Interest can be compounded quarterly, monthly, or paid out periodically depending on the scheme.
How FD Interest is Calculated
FD maturity amount is calculated using the compound interest formula: A = P x (1 + r/n)^(n*t), where P is the principal, r is the annual interest rate, n is the compounding frequency, and t is the time in years. For quarterly compounding, n=4. A deposit of $10,000 at 7% for 5 years with quarterly compounding matures to approximately $14,148.
Types of Fixed Deposits
There are several types of FDs: Regular FDs (standard fixed tenure deposits), Tax-saving FDs (5-year lock-in with tax deduction), Senior Citizen FDs (0.25-0.5% higher rate for those 60+), Cumulative FDs (interest reinvested, paid at maturity), and Non-cumulative FDs (interest paid periodically — monthly, quarterly, or annually). Each serves different financial needs.
Frequently Asked Questions
Is FD interest taxable?
Yes, FD interest is generally taxable as income in most countries. In India, interest is added to your income and taxed at your slab rate. TDS at 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for seniors). In the US, CD interest is taxed as ordinary income. In the UK, the first £1,000 of savings interest (£500 for higher rate taxpayers) is tax-free under the Personal Savings Allowance.
What is the penalty for breaking an FD early?
Most banks charge a 0.5-1% penalty on the applicable interest rate for premature withdrawal. For example, if your FD rate is 7% and you break it after 1 year, you might get the 1-year rate (say 6.5%) minus a 0.5% penalty, effectively earning 6%. Some banks offer partial withdrawal without penalty on specific products. Tax-saving FDs cannot be broken before 5 years.
How do FD rates compare to inflation?
FD rates should ideally exceed inflation to provide real (inflation-adjusted) returns. In many countries, FD rates barely match or fall slightly below inflation, meaning the real return is near zero or negative. For example, a 7% FD with 6% inflation gives only 1% real return. After tax, the real return may be negative. This is why FDs are best for short-term goals or as the stable portion of a diversified portfolio.