* Most Indian banks calculate FD interest Quarterly.
Maturity Amount
A Fixed Deposit (FD) is one of the safest investment options in India, offering guaranteed returns and capital protection. Banks offer higher interest rates on FDs compared to regular savings accounts. Our FD Calculator helps you calculate the maturity amount of your deposit by considering the principal, interest rate, and tenure. It uses the compounding formula (usually quarterly) to provide you with accurate figures, helping you plan your financial goals with certainty.
Unlike mutual funds or stocks, FDs are not affected by market fluctuations.
Interest is added to your principal every quarter, helping your money grow faster.
Banks typically offer 0.50% extra interest rate to senior citizens.
You can withdraw your FD prematurely in case of emergencies (penalty may apply).
5-year Tax Saving FDs are eligible for deductions under Section 80C.
In India, FD interest is usually calculated using the Compound Interest formula with quarterly compounding. This means interest earned in the first quarter is added to the principal to calculate interest for the next quarter.
Yes, the interest earned on Fixed Deposits is fully taxable. It is added to your total income and taxed as per your income tax slab. Banks also deduct TDS (Tax Deducted at Source) at 10% if the annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
Premature withdrawal is allowed, but banks typically charge a penalty of 0.5% to 1% on the interest rate applicable for the period the deposit was held.
Yes, FDs are risk-free investments where your principal and returns are guaranteed by the bank. Mutual funds are market-linked and carry a risk of capital loss, although they may offer higher returns in the long run.
