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 × (1 + 0.07/4)^(4×2)
A = 1,00,000 × (1.0175)^8 = 1,00,000 × 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.