Calculate FD maturity amount and interest earned " monthly, quarterly & annual compounding
A Fixed Deposit is one of India's most popular savings instruments, offered by banks and NBFCs with guaranteed returns. You deposit a lump sum for a fixed tenure, and the bank pays you interest at a pre-agreed rate. At maturity, you receive the principal + interest (or interest periodically if it's a non-cumulative FD).
The key advantage of FD over a savings account is the significantly higher interest rate (typically 6.5%"9% vs 3%"4% for savings). However, the money is locked in and premature withdrawal attracts a penalty (usually 0.5%"1% lower rate).
Principal: 1,00,000 | Rate: 7% p.a. | Tenure: 2 years | Compounding: Quarterly (n=4)
A = 1,00,000 A (1 + 0.07/4)^(4A2)
A = 1,00,000 A (1.0175)^8 = 1,00,000 A 1.1494 = 1,14,940
Interest Earned: 14,940 over 2 years ✅
Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if interest exceeds 40,000 per year (50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G/15H to avoid TDS deduction.
Cumulative FD: Interest is compounded and paid at maturity along with principal. Suitable for wealth accumulation. Non-cumulative FD: Interest is paid out periodically (monthly/quarterly/annually). Suitable for retirees or those needing regular income.
Small Finance Banks like Suryoday, Jana, and Utkarsh typically offer higher FD rates (8.5%"9.5%) compared to large banks like SBI (6.8%"7.5%) or HDFC (7%"7.75%). Senior citizens usually get 0.25%"0.5% extra. Always check current rates on the bank's official website as they change frequently.
Post Office Time Deposits (POTD) are backed by the Government of India (sovereign guarantee), making them risk-free. Rate: 7.5% for 5-year term (Q2 2026). Bank FDs are insured up to 5 lakh per bank per depositor by DICGC. For amounts above 5L, Post Office is safer; for higher returns, compare Small Finance Banks.