What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is one of the safest and most popular investment instruments offered by banks and NBFCs in India. It guarantees a fixed rate of return over a chosen tenure, shielding your capital from market fluctuations. FDs are the bedrock of conservative financial planning.
How the FD Calculator Works
Our Fixed Deposit Calculator accurately calculates the maturity amount and interest earned using the compounding formula: A = P(1 + r/n)^(n*t), where interest is typically compounded quarterly. You just need to enter your principal amount, tenure, and bank's interest rate. It also supports specialized payouts (Monthly, Quarterly, or Cumulative) depending on your needs.
Tax Implications on FD Returns
While FDs offer guaranteed returns, the interest earned is fully taxable according to your income tax slab. Additionally, banks deduct a 10% TDS (Tax Deducted at Source) if your annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G/15H to prevent TDS deduction.