Fixed Deposit (FD) Calculator
Calculate your guaranteed returns on Fixed Deposits. Find out the maturity amount and total interest earned instantly.
FD Details
Maturity Details
Understanding Fixed Deposits in India
A Fixed Deposit (FD) is one of the safest investment instruments available in India, offered by banks and Non-Banking Financial Companies (NBFCs). You deposit a lump sum amount for a specific period at a predetermined interest rate, guaranteeing your returns irrespective of market fluctuations.
How FD Interest is Calculated
In India, most banks use the compound interest formula to calculate FD returns, compounding the interest on a quarterly basis. The formula used is:
- A: Maturity Amount
- P: Principal Investment Amount
- r: Annual Interest Rate (in decimal)
- n: Number of times interest is compounded per year (usually 4 for quarterly)
- t: Tenure of the FD in years
Tax Implications on FD Returns
Interest earned on FDs is fully taxable based on your income tax slab. Additionally, banks will deduct a 10% TDS (Tax Deducted at Source) if your total FD interest across all branches of that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G (or 15H for senior citizens) to the bank to prevent TDS deduction.
Frequently Asked Questions (FAQ)
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is a secure financial instrument offered by banks and NBFCs in India where you deposit a lump sum amount for a fixed tenure at a guaranteed interest rate.
How is interest compounded on an FD?
Most Indian banks compound Fixed Deposit interest on a quarterly basis. Some banks also offer options for monthly or annual payout frequencies.
Is FD interest subject to tax?
Yes, interest earned on FDs is fully taxable based on your income tax slab. Banks deduct 10% TDS (Tax Deducted at Source) if the annual interest exceeds ₹40,000 (₹50,000 for senior citizens).