FD Calculator

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What is an FD (Fixed Deposit)?

A Fixed Deposit (FD) is one of the safest and most popular investment options, where you invest a lump sum amount for a fixed tenure at a guaranteed interest rate. Banks and NBFCs offer FD schemes with different tenures and interest rates, ensuring secure and predictable returns.

How Does FD Work?

When you deposit money in an FD, the bank locks the amount for a specified period. During this time, the amount earns interest at a fixed rate. At the end of the tenure, you receive the maturity amount = Principal + Interest Earned.

• Guaranteed returns
• Flexible tenure (7 days to 10 years)
• Higher interest for senior citizens
• Safe investment with low risk

FD Interest Calculation Formula

Example of FD Calculation

• Investment Amount: ₹1,00,000
• FD Interest Rate: 7% per annum
• Tenure: 5 years
• Compounding: Quarterly

The FD calculator instantly shows:

• Total maturity amount
• Total interest earned
• Effective annual yield

Benefits of Fixed Deposits

• ✔ Safe, low-risk investment
• ✔ Guaranteed fixed returns
• ✔ Easy to open and manage
• ✔ Senior citizens get higher interest
• ✔ Loan facility available against FD
• ✔ Ideal for short-term and long-term goals

Frequently Asked Questions (FAQ)

1. Is FD safe?

Yes. FDs are considered one of the safest investments and are insured up to ₹5 lakh by DICGC.

2. Can I break my FD before maturity?

Yes, but banks may charge a premature withdrawal penalty.

3. Are FD returns taxable?

Yes. FD interest is fully taxable as per your income tax slab. TDS may apply if interest exceeds ₹40,000 (₹50,000 for senior citizens).

4. Which FD tenure gives highest returns?

Tenures between 1 and 5 years generally offer the highest FD interest rates.