Fixed Deposit (FD) Calculator

FD Summary

About Fixed Deposits

A fixed deposit is a term investment offered by banks and NBFCs. Money stays locked for a chosen tenure, typically from a few days up to 10 years, and earns interest at a predetermined rate.

How this calculator helps

• Instantly estimates maturity value and interest earned.
• Handles simple and compound interest without manual math.
• Compare rates and outcomes by adjusting inputs and compounding.

Formulas

• Simple Interest: Simple Interest: M = P + (P × r × t / 100)
• Compound Interest: Compound Interest: M = P × (1 + i/100)^n, where i = r/m and n = t × m

How to use

1. Enter principal, annual rate, and tenure.
2. Select simple or compound; choose compounding for compound FD.
3. Review the summary values shown above.

Overview of Fixed Deposits

• What: Deposit a fixed amount for a chosen tenure to earn interest.
• Who provides: Banks and NBFCs.
• Opening: Online or offline.
• Risk: Low; regulated by RBI.
• Premature withdrawal: Allowed per bank policy, typically with interest penalty.

Types of Fixed Deposits

• Standard: Fixed tenure; preset bank rate; 7 days to 10 years.
• Tax Saving: One-time deposit; 5-year lock-in; eligible up to ₹1.5 lakh under Section 80C.
• Special: Higher rate if funds remain beyond specified period.
• Regular Income: Periodic interest payout (monthly/quarterly).
• Senior Citizen: Additional interest (often ~0.50%) with flexible tenures.
• Flexi: Linked to savings account; surplus auto-sweeps to FD.
• Corporate/Company: Offered by companies/NBFCs; generally higher rates; assess credit ratings; unsecured and riskier than bank FDs.

Cumulative vs Non-cumulative

• Cumulative: Interest compounded (usually quarterly) and paid with principal at maturity.
• Non-cumulative: Interest paid out during the deposit term (monthly/quarterly/half-yearly/yearly).

FDs for NRIs

• NRE: Deposit foreign income; interest is tax-free; principal and interest repatriable; subject to exchange rate fluctuation.
• NRO: For income earned in India; interest taxable at 30% per IT Act; principal repatriable within limits; lower exchange rate risk.

Benefits

• Assured returns and relatively low risk.
• Higher rates than savings and recurring deposits.
• Tax-saving options under Section 80C with lock-in.
• Easy online opening and quick maturity estimate using this calculator.