FD Calculator
Calculate maturity amount for Fixed Deposits with interest.
Maturity Value:
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About Fixed Deposits (FD)
A Fixed Deposit (FD) is one of the safest investment options offered by banks and Non-Banking Financial Companies (NBFCs). It offers guaranteed returns over a fixed tenure, making it ideal for conservative investors.
How is FD Interest Calculated?
Most Indian banks compound interest quarterly. The formula used is:
A = P × (1 + r/n)^(n*t)
- P = Principal Investment Amount
- r = Rate of Interest (decimal)
- n = Compounding Frequency (4 for Quarterly)
- t = Time in years
Frequently Asked Questions
1. Is FD interest taxable?
Yes. Interest earned from FDs is fully taxable as per your income tax slab. If interest exceeds ₹40,000 in a year (₹50,000 for seniors), banks deduct TDS at 10%.
2. Can I withdraw FD before maturity?
Yes, but most banks charge a penalty (usually 0.5% to 1%) on the interest rate for premature withdrawal.
3. Which is better: FD or SIP?
FDs offer safety and guaranteed returns (approx 6-8%). SIPs in equity funds carry market risk but offer higher potential returns (12-15%) over the long term. Choose based on your risk appetite.