$
%
yrs
mos
A Fixed Deposit (FD) is a popular financial product offered by banks and financial institutions, where a lump sum amount is invested for a fixed period at an agreed interest rate. FD provides guaranteed returns and is one of the safest investment options for risk-averse individuals. The interest earned on an FD is compounded quarterly, and the maturity amount is paid out at the end of the term.
FDs are ideal for individuals who have idle funds and want a secure investment option with predictable returns. They are often used for short- to medium-term financial goals such as emergency funds, education expenses, or building a safety net.
FD interest is calculated based on the principal amount and the interest rate offered by the bank. The interest is compounded quarterly and is paid either at maturity or periodically (depending on the option chosen).
The formula for FD interest is:
A = P × (1 + r/n)nt
Where:
A = Maturity amount
P = Principal amount
r = Annual interest rate
n = Number of times the interest is compounded per year
t = Time in years
FD calculators use this formula to provide the expected maturity amount and earned interest based on user inputs.
FD tenure is the duration for which your investment is locked in. The tenure can range from as short as 7 days to as long as 10 years, depending on your investment goal. Longer tenures generally offer higher interest rates.
Choose the tenure based on your liquidity needs. For example, use a 1-year FD for a short-term goal or a 5-year FD for long-term planning like retirement.
Yes, premature withdrawal is allowed in FD, but it usually comes with penalties. The interest rate is typically revised to a lower rate based on the period for which the FD was held, and banks may charge a penalty (typically 0.5% to 1%) on the interest earned.
Some banks allow partial withdrawals, while others require the entire FD to be closed. Always review your the policies of your bank on premature withdrawal before investing.
Interest earned on FD is fully taxable according to your income tax slab. There is no tax exemption under Section 80C. If the total interest earned in a financial year exceeds ₹40,000 (₹50,000 for senior citizens), the bank will deduct TDS (Tax Deducted at Source) at 10%.
If TDS is deducted, you can claim a refund while filing your Income Tax Return (ITR) if your total taxable income is below the taxable limit.
Fixed Deposits (FDs) and Recurring Deposits (RDs) are both safe, fixed-income instruments, but they differ in how you invest the money.
FD typically offers slightly higher returns than RD, as the principal is invested in full from the beginning.
Our FD calculator at MoneyReload helps users easily calculate their FD maturity amount and interest earned based on the principal, interest rate, and tenure.
It provides quick results without the need for manual calculations, helping users plan their investments effectively.
To use the FD calculator, simply enter the principal amount you wish to invest, the annual interest rate, and your desired tenure. The tool will calculate the maturity amount and interest earned. You can modify the inputs to compare various FD options.
The tool also lets you adjust the frequency of interest payment (monthly, quarterly, or annually) to see how that impacts your returns.
Our FD calculator is designed to be user-friendly and offers real-time updates on your maturity value and earned interest. It also provides visual charts to illustrate your returns over time.
The calculator is tailored for both regular FD investors and those looking for short-term or long-term investments, making it a versatile tool for everyone.
Use our FD calculator to easily calculate your fixed deposit interest. Simply input the principal amount, interest rate, and tenure, and our tool will compute the interest earned on your FD investment.
The maturity value of a fixed deposit is the amount you will receive at the end of your FD tenure, which includes both the principal and the earned interest. Our FD calculator can help you calculate this value quickly.
Yes, interest earned on fixed deposits is subject to tax. It is added to your total income and taxed according to your income tax slab. Our FD calculator does not calculate tax, but it helps you estimate your FD interest.
There are various types of fixed deposits, including regular fixed deposits, tax-saving FD, and senior citizen FD. Each type has different features such as tenure and tax implications. Our calculator can be used for most FD types.
Yes, premature withdrawal of a fixed deposit is allowed, but it usually incurs a penalty. The interest earned will also be lower than expected. Our FD calculator provides results based on the regular tenure but does not account for premature withdrawal.
Senior citizens typically receive a higher interest rate on fixed deposits compared to regular depositors. Check with your bank for the latest senior citizen FD interest rates and use our calculator to estimate the returns.
Compound interest on fixed deposits is calculated periodically, such as quarterly or annually. Input the details in our FD calculator, and it will automatically compute the compound interest based on the frequency you choose.
Yes, you can select the interest payout frequency for your fixed deposit. It can be monthly, quarterly, or annually. Our FD calculator allows you to simulate different payout options.
Reinvesting the interest earned on your FD will help you accumulate more interest over time through compounding. Our FD calculator calculates interest for the given tenure, but reinvestment will further increase the maturity value.
FD interest is taxable, and the amount will be added to your taxable income. You can calculate the estimated tax payable by using our income tax calculator alongside the FD interest results.
