Loading calculators...
Loading calculators...
We use cookies to enhance your experience, analyze traffic, and serve personalized ads. Learn more in our Privacy Policy.
Calculate your fixed deposit maturity amount with our free FD calculator. Compare different compounding frequencies and see year-wise growth.
Compounding Frequency
Principal
₹1,00,00080.0% of total
Interest Earned
₹24,97220.0% of total
Maturity Amount
₹1,24,9727.71%
per annum
| Year | Investment | Returns | Corpus |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹7,714 | ₹1,07,714 |
| Year 2 | ₹1,00,000 | ₹16,022 | ₹1,16,022 |
| Year 3 | ₹1,00,000 | ₹24,972 | ₹1,24,972 |
A Fixed Deposit (FD) is a safe investment option where you deposit a lump sum for a fixed period at a predetermined interest rate. FDs offer guaranteed returns and are one of the most popular investment options in India.
The frequency of compounding significantly impacts your final returns. More frequent compounding means interest is added to your principal more often, allowing you to earn interest on interest sooner. For a ₹1,00,000 deposit at 7% for 5 years: yearly compounding yields ₹1,40,255, half-yearly yields ₹1,41,060, quarterly yields ₹1,41,476, and monthly yields ₹1,41,763.
If you invest ₹1,00,000 in an FD at 7% per annum for 5 years with quarterly compounding, your maturity amount would be approximately ₹1,41,476. The total interest earned would be ₹41,476, and the effective yield would be 7.19% due to compounding.
Interest earned on FDs is fully taxable as per your income tax slab. Banks deduct TDS at 10% if total interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
A Fixed Deposit (FD) is a financial instrument provided by banks that offers a higher interest rate than a regular savings account, for a fixed tenure.
FD interest is calculated using the compound interest formula: A = P(1+r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is tenure.
Banks typically offer 0.5% higher interest rates to senior citizens on fixed deposits. Our calculator automatically adds this when enabled.
More frequent compounding (monthly/quarterly) yields slightly higher returns. Quarterly compounding is the standard for bank FDs in India.
Yes, FD interest is taxable under Income Tax. TDS is deducted at 10% if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. Submit Form 15G/15H to avoid TDS if your income is below taxable limit.
Tax-saver FDs have a 5-year lock-in period and qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year. Interest earned is still taxable.