Fixed Deposit Calculator

A Fixed Deposit is a financial instrument where you lock in a sum of money for a specific period at a predetermined interest rate. Typically offered by banks, FDs are considered low-risk, and your principal earns interest until maturity.

Our Fixed Deposit Calculator uses your deposit amount, annual interest rate, and tenure to compute the final maturity amount. You can also specify if interest is compounded monthly, quarterly, or annually. The calculator then displays the total interest earned and the final payout.

Banks may credit interest monthly, quarterly, yearly, or at maturity. This tool supports common frequencies, letting you see how different intervals impact your total returns. More frequent compounding generally yields a slightly higher maturity value than annual compounding.

Early withdrawal is possible but often comes with a penalty or reduced interest rate. This calculator assumes you hold the FD until maturity. To account for early withdrawal, consult your bank’s specific rules for penalty charges and recalculated rates.

The calculation is mathematically accurate for the inputs provided. Real-world FDs might have additional conditions like minimum deposit thresholds or special interest rates for seniors. Use this tool for a good estimate, but confirm exact figures with your bank’s official documentation.

It depends on your financial goals, liquidity needs, and expected interest rate trends. Longer tenures often have higher rates but lock your funds away for a longer time. Use this calculator to see potential returns across different tenures, then decide what fits your plans.

Simple Interest (SI) is calculated only on the initial deposit, whereas Compound Interest (CI) accrues on both the principal and accumulated interest.

🔹 Formula Comparison:

• Simple Interest (SI): SI = (P × R × T) ÷ 100
• Compound Interest (CI): CI = P × (1 + R/100)^T - P

If you choose an FD with compound interest, your earnings grow much faster compared to simple interest. Most banks offer compound interest FDs for better returns.

Inflation reduces the real value of your money over time, meaning your FD returns may not be as high when adjusted for inflation.

🔹 Example:

• If your FD gives a 6% interest rate, but inflation is 4%, your net real return is only 2%.
• When inflation is higher than the FD rate, the actual purchasing power of your returns decreases.

To protect against inflation, consider diversifying investments or opting for longer-term FDs with higher interest rates.

Yes, many banks allow you to take a loan against your FD instead of withdrawing early. This helps you maintain the full interest benefits while accessing liquidity.

🔹 Key Features of FD Loans:

• You can borrow up to 90% of your FD value.
• The interest rate on FD loans is 1-2% higher than the FD rate.
• Your FD remains intact, and interest continues accruing.

Use our Fixed Deposit Calculator to determine if an FD loan is a better alternative to early withdrawal.

Yes, the interest earned on Fixed Deposits is taxable as per your income tax slab. However, certain tax-saving FDs provide exemptions.

🔹 Tax Rules for FDs:

• Interest earned above a certain threshold is subject to TDS (Tax Deducted at Source).
• Tax-saving FDs (with a 5-year lock-in) provide deductions under Section 80C.
• Senior citizens enjoy higher exemption limits on FD interest income.

Check with your bank or tax advisor to understand how FD taxation applies to you.

Fixed Deposits are low-risk and stable, but they may offer lower returns compared to mutual funds, stocks, or real estate.

🔹 Comparison Table:

While FDs offer stability, other investments might yield higher long-term returns.