FD Calculator – Secure Your Future with Guaranteed Returns
In a volatile financial market, the Fixed Deposit (FD) stands as a pillar of stability. It is the preferred investment choice for millions who prioritize capital safety and guaranteed returns over high-risk ventures.
Our FD Calculator simplifies your investment planning. Whether you are saving for a short-term goal or building a retirement corpus, this tool helps you calculate the exact maturity amount and interest earned, empowering you to make informed financial decisions.
Why Choose Fixed Deposits?
While new investment avenues emerge, FDs remain a favorite for good reasons:
Guaranteed Returns
Unlike market-linked investments, FDs offer a fixed interest rate for the entire tenure. You know exactly how much you will earn the day you invest.
High Liquidity
Need funds urgently? You can prematurely withdraw your FD (usually with a small penalty) or take a loan against it without breaking the deposit.
Senior Citizen Benefits
Banks typically offer an additional 0.50% interest rate to senior citizens, making FDs an excellent source of regular income for retirees.
Flexible Options
Choose from cumulative FDs (interest paid at maturity) for compounding growth or non-cumulative FDs (monthly/quarterly payouts) for regular income.
Frequently Asked Questions (FAQs)
How is interest calculated on FDs?
For tenures less than 6 months, simple interest is usually applied. For tenures of 6 months or more, interest is compounded quarterly. The formula is: A = P (1 + r/n)^(nt), where 'n' is the number of times interest is compounded per year (usually 4).
Is FD interest taxable?
Yes, interest earned on FDs is fully taxable as per your income tax slab. Banks deduct TDS (Tax Deducted at Source) at 10% if the interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year, provided your PAN is updated.
What is a Tax-Saving FD?
A Tax-Saving FD has a mandatory lock-in period of 5 years and offers tax deductions under Section 80C of the Income Tax Act (up to ₹1.5 Lakhs). However, you cannot withdraw funds prematurely or take a loan against these FDs.
Can I break my FD before maturity?
Yes, most banks allow premature withdrawal. However, they usually charge a penalty of 0.5% to 1% on the interest rate applicable for the period the deposit was held.
Are FDs safer than Mutual Funds?
In terms of capital protection, yes. FDs offer guaranteed returns and are insured up to ₹5 Lakhs by DICGC. Mutual funds are subject to market risks but have the potential to offer significantly higher inflation-beating returns over the long term.