FD Calculator
Calculate Fixed Deposit maturity amount, interest earned, and effective yield
FD Details
FD Type: Cumulative - Interest is reinvested and paid at maturity
Principal Amount
₹1,00,000
Maturity Amount
₹1,44,995
Interest Earned
₹44,995
Effective Yield
7.71%
FD Growth Over Time
What is FD?
Fixed Deposits(FD) is a financial instrument offered by banks and financial institutions. An individual invests a lump sum amount for a specific period of time with a bank and during which the amount earns interest at a predetermined rate. At maturity you receive principal along with compounded interest rate. They generally have higher interest rates than savings accounts.
How Does FD Work?
- You invest lump sum in FD (e.g. 5,000, 10,000)
- You choose the tenure (e.g. 3 years, 10 years)
- The bank locks the money
- Interest is calculated and added
- At maturity you receive principal amount(amount you invested) along interest earned.
Example of FD Growth
If you invest ₹1,00,000 for 5 years at 7% interest compounded quarterly, you’ll get around ₹1,41,477.82 at maturity.
| Year | Principal | Principal + Interest | Interest Earned |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹1,07,185.90 | ₹7,185.90 |
| 2 | ₹1,00,000 | ₹1,14,888.18 | ₹14,888.18 |
| 3 | ₹1,00,000 | ₹1,23,143.93 | ₹23,143.93 |
| 4 | ₹1,00,000 | ₹1,31,992.94 | ₹31,992.94 |
| 5 | ₹1,00,000 | ₹1,41,477.82 | ₹41,477.82 |
Total Investment: ₹1,00,000
Interest Earned: ₹41,477 (approx.)
Maturity Amount: ₹1,41,477.82
Formula to Calculate FD Interest
A = + P * (1+ r/n) ^ n Interest = A – P Where: A = Maturity Amount P = Principal r = Interest Rate n = Compounding Frequency t = Time (in years)
Types of Fixed Deposits (FDs)
Regular FD
This is the most common type of FD, where you invest a lump sum amount for a fixed tenure and earn a predetermined interest rate. It’s ideal for people who want guaranteed returns with minimal risk.
Example: If you invest ₹1,00,000 for 3 years at 6.5% interest, your maturity amount will be around ₹1,21,000.
Flexi FD
When your balance exceeds a certain limit, the excess amount is automatically transferred into an FD. If you need money, it can be auto-swept back, offering both liquidity and returns.
Example: If you set a savings account limit of ₹50,000 and your balance rises to ₹80,000, the extra ₹30,000 is auto-swept into an FD at FD rates, while you still have access to funds if required.
Non-Cumulative FD
Instead of receiving the interest at the end of the term, you get it monthly, quarterly, or annually. This is ideal for retirees or anyone looking for a fixed source of income.
Example: If you invest ₹5,00,000 at 7% for 5 years, you can receive ₹2,916 every month as interest.
Cumulative FD
The interest is compounded and paid at maturity along with the principal. It helps your investment grow faster over time due to compounding. This is ideal for a person who is not in urgent need of funds.
Example: A ₹2,00,000 FD at 7% for 5 years will give you a maturity amount of around ₹2,82,000, with all interest accumulated and paid at the end.
Senior Citizen FD
They are specially designed for people above 60 years of age. They generally offer 0.25% to 0.75% higher interest rates than regular FDs and are a secure way to generate income post-retirement.
Example: If a senior citizen invests ₹3,00,000 at 7.5% for 5 years, the maturity amount will be around ₹4,34,000, higher than a normal FD at 7%.
Corporate FD
These are FDs offered by corporate companies and NBFCs (not banks) and usually offer higher interest rates than bank FDs. However, they carry more risk since they are not insured like bank FDs. It's important to check the company’s credit rating and reputation before investing.
Example: A corporate FD might offer 8.5% when banks are offering 7%, so an investment of ₹1,00,000 for 3 years could give you around ₹1,28,000 compared to ₹1,23,000 in a bank FD.
Key Features of Fixed Deposits
- Compounded periodically: The return on the invested amount is compounded quarterly, annually, or monthly.
- Flexible tenure (7 days to 10 years)- FDs have investment tenures ranging from 7 days to 10 years, which differs from bank to bank.
- Higher interest for senior citizens- Banks and NBFC’s offer senior citizens an additional 0.25% to 0.75% interest rate.
- Premature withdrawal (subject to penalty)- Premature withdrawal of FD’s are allowed,though a small penalty may apply.
- Loan against FD- Most banks allow you to borrow up to 90% of your FD value.
Taxation Rules for Fixed Deposits
Interest income from Fixed Deposits is fully taxable under IIncome from Other Sources” and must be declared in your Income Tax Return. For FY 2025–26, banks will deduct TDS only if FD interest exceeds ₹50,000 (₹1 lakh for senior citizens) in a financial year. The TDS rate is 10% with PAN and 20% without PAN. To avoid this deduction upfront, depositors can submit Form 15G (under 60 years) or Form 15H (60+ with zero tax liability), but in all cases, FD interest must be reported in their ITR.
What is an FD Calculator and How Does It Help?
An FD calculator is a simple tool that tells you what your FD might look like in the future. All you need to enter is:
- Deposit amount (like ₹1,00,000)
- Time Period(like 5 years)
- Interest Rate (like 7%)
In just the seconds, It will show you-
- How much you’ll receive at maturity
- Total interest earned over the period
- Your effective annual yield
How to use Finanjo’s FD Calculator – Step-by-Step
- Enter your invested amount (e.g., ₹3,00,000)
- Enter your time period (e.g., 10 years)
- Enter the interest rate(e.g., 7%)
- Choose compounding frequency( e.g. quarterly)
- It will calculate and dynamically update the graph and the values.
Features of Finanjo’s FD Calculator
- Multiple compounding frequencies (Quarterly, Half-Yearly, Annually)
- Cumulative and Non-Cumulative FD types
- Real-time calculations with visual charts
- PDF export functionality
- Mobile-responsive design
Frequently Asked Questions About FD
Is the interest earned on FD taxable?
Yes. The interest earned on FD is taxable as ‘Income from Other Sources’.
Can I withdraw my FD before maturity?
Yes, but withdrawing money may attract a penalty or a lower interest rate than initially agreed.
Do senior citizens get higher interest rates?
Yes, most banks offer 0.25% to 0.50% extra interest to individuals aged 60 and above.
Can I take a loan against FD?
Yes, most banks allow you to borrow up to 90% of your FD value.
What is the minimum amount required to open an FD?
Most banks allow FD opening with as low as ₹1,000, though this may vary by bank.
Is the FD interest rate fixed for the entire tenure?
Yes, the interest rate remains fixed once the FD is booked, regardless of market rate changes.
Is my money safe in a bank FD?
Yes, deposits up to ₹5 lakh per depositor per bank are insured under the DICGC scheme.
Can I open multiple FDs in the same bank?
Yes, you can open any number of FDs with different amounts and tenures.
What happens if I don't withdraw my FD after maturity?
Banks usually auto-renew the FD or shift it to a savings account at a lower interest rate. Policies vary by bank.
Is TDS deducted on FD interest?
Yes, if the interest earned in a financial year exceeds ₹40,000 (₹50,000 for senior citizens), TDS will be deducted.
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