Calculate your FD returns and maturity amount. Compare rates from top banks and plan your low-risk investments.
Fixed Deposits (FD) remain one of the most popular low-risk investment vehicles in India. They offer guaranteed returns and a higher interest rate than a regular savings account.
Most banks use Quarterly Compounding for FDs. This means the interest you earn in the first three months is added to your principal, and then you earn interest on that new total for the next three months.
A Fixed Deposit (FD) is one of the most popular and safest investment instruments in India. Offered by banks and non-banking financial companies (NBFCs), an FD allows you to deposit a sum of money for a fixed tenure at a guaranteed interest rate. Unlike market-linked investments, FDs provide absolute certainty about your maturity amount from the day you invest.
A = Maturity Amount, P = Principal, r = Annual rate, n = Compounding frequency (usually 4 for quarterly), t = Tenure in years
Most Indian banks (like SBI, HDFC, ICICI) calculate FD interest using Quarterly Compounding. This means that every three months, the interest earned is added to your principal, and for the next three months, you earn interest on this new, higher amount. This results in an 'Effective Yield' that is slightly higher than the nominal interest rate quoted by the bank.
Interest earned on FDs is fully taxable as per your income tax slab. Banks are required to deduct TDS (Tax Deducted at Source) at 10% if your annual interest income exceeds ₹40,000 (₹50,000 for senior citizens). If your total annual income is below the taxable limit, you can submit Form 15G or 15H to prevent this TDS deduction.
Senior citizens (aged 60 and above) almost always receive a higher interest rate on FDs, typically 0.50% higher than standard rates. This, combined with higher TDS thresholds and specific tax-free limits under Section 80TTB (up to ₹50,000), makes FDs the preferred retirement asset for millions of Indians.
A specific type of Fixed Deposit, called the 5-Year Tax-Saving FD, allows you to claim a deduction of up to ₹1.5 Lakhs under Section 80C. Note that these deposits have a mandatory lock-in period of 5 years, and premature withdrawal is not allowed. Also, while the deposit is tax-deductible, the interest earned is still taxable.
Parking ₹1 Lakh for 1 year to earn interest.
Investing ₹10 Lakhs for 5 years at higher rates.
Yes, FDs in scheduled banks are very safe. Additionally, the DICGC (subsidiary of RBI) insures deposits up to ₹5 Lakhs per bank.
In Cumulative FD, interest is paid at maturity. In Non-Cumulative FD, interest is paid out at regular intervals (monthly/quarterly) for your expenses.
Yes, most banks offer loans/overdrafts up to 90% of the FD value at a slightly higher interest rate (usually 1-2% above the FD rate).
An RD is like an SIP for FDs. You deposit a fixed amount every month rather than a lumpsum at the start.
By submitting Form 15G (for individuals < 60) or Form 15H (for seniors) at the start of each financial year, provided your total income is below the tax limit.
Our current calculator shows the gross maturity. You should manually deduct your tax slab (e.g., 20% or 30%) from the 'Interest Earned' to find net returns.
Yes, parents/guardians can open FDs for minors. The interest will be clubbed with the parent's income for tax purposes.
Generally, the maximum tenure for a bank FD in India is 10 years.
It's a mix of Savings and FD where any amount above a limit in your savings account is automatically moved to an FD to earn higher interest.
If you haven't opted for auto-renewal, the bank usually credits the amount to your savings account or keeps it as an 'overdue deposit' at a lower savings rate.