FD Calculator
Calculate your Fixed Deposit returns with compound interest. Plan your investments and understand the impact of different interest rates and tenures.
FD Planning
Calculate returns on your fixed deposit investments
Interest Analysis
Compare simple and compound interest earnings
Auto-Renewal Impact
See how reinvestment affects your returns
Tax Impact
Understand post-tax returns on your FD investment
Calculate FD Returns
Enter your investment details to calculate returns
Analysis Results
FD Investment Returns
Using simple interest (Interest payout option)
Maturity Summary
Your investment results after 1 years
Returns Breakdown
- •Total Interest Earned: ₹7,250
- •Effective Annual Rate: 7.25%
- •Monthly Interest Equivalent: ₹604
Tax Impact
- •Tax on Interest: ₹1,450
- •Post-tax Maturity Amount: ₹1,05,800
- •Tax Rate Applied: 20%
Interest is calculated at 7.25% per annum with quarterly payout
Interest Payout Schedule
Your regular interest payouts with quarterly option
Regular Payout Details
₹1,813
Per quarterly payout
₹7,250
Total interest over tenure
With the quarterly payout option, you'll receive regular interest payments instead of reinvesting. Your principal amount of ₹1,00,000will be returned at maturity.
Interest Payout Breakdown
Your regular interest payouts over the investment period
| Period | Principal | Interest Payout | Cumulative Interest |
|---|---|---|---|
| 1 (First) | ₹1,00,000 | ₹1,812 | ₹1,01,813 |
| 2 | ₹1,00,000 | ₹1,812 | ₹1,03,625 |
| 3 | ₹1,00,000 | ₹1,812 | ₹1,05,438 |
| 4 (Last) | ₹1,00,000 | ₹1,812 | ₹1,07,250 |
• Interest is paid out quarterly at 7.25% per annum
• Principal amount remains constant throughout the tenure
• You will receive your principal back at maturity
Investment Tips & Recommendations
Personalized insights based on your investment details
Rate Analysis
Your interest rate is in line with current market averages.
Tip: Longer tenure FDs typically offer better interest rates.
Tenure Optimization
Medium-term FDs balance good returns with reasonable liquidity. Consider diversifying across different tenures.
Tax Efficiency
Your moderate tax bracket allows for reasonable post-tax returns. Still, consider tax-saving options if applicable.
Your interest is below the TDS threshold of ₹40,000 per year, so no TDS will be deducted.
Reinvestment Strategy
With your chosen quarterly payout option, you'll receive regular income of ₹1,813 per payout period. This is ideal if you need regular income.
If you don't need the regular income, switching to the reinvestment option would yield higher returns at maturity.
Diversification Advice
Your investment is within the ₹5 lakh DICGC insurance limit, which protects your deposit in case of bank failure.
Consider creating an FD ladder by dividing your principal into multiple FDs with staggered maturity dates. This provides periodic liquidity while maintaining higher average returns.
Understanding Fixed Deposits
Learn how FDs work, their calculation methods, and pros & cons
How Fixed Deposits Are Calculated
Simple Interest Method
Used for regular payout options (Monthly, Quarterly, Semi-annually):
Interest = Principal × Rate × Time
Where Rate is annual interest rate (in decimal) and Time is tenure in years
Compound Interest Method
Used for reinvestment/cumulative options:
Maturity Amount = Principal × (1 + Rate/n)n×t
Where n is compounding frequency per year and t is time in years
Banks calculate interest based on the exact number of days, considering leap years. For partial periods, interest is typically calculated on a pro-rata basis.
Advantages of Fixed Deposits
- •Safety: FDs are one of the safest investment options with guaranteed returns
- •Predictable returns: Fixed interest rates provide certainty about future earnings
- •Flexible tenures: Options ranging from 7 days to 10 years to suit different goals
- •Loan facility: Ability to take loans against FDs (typically 75-90% of deposit value)
- •Deposit insurance: Protected up to ₹5 lakhs per bank under DICGC
- •Tax benefits: Tax-saving FDs offer deduction under Section 80C (5-year lock-in)
Disadvantages of Fixed Deposits
- •Inflation risk: Returns may not always beat inflation, reducing real purchasing power
- •Liquidity constraints: Premature withdrawals incur penalty (typically 0.5-1%)
- •Tax implications: Interest is fully taxable at your income tax slab rate
- •TDS deduction: 10% TDS on interest exceeding ₹40,000 per year (₹50,000 for seniors)
- •Lower returns: Generally lower returns compared to market-linked investments
- •Interest rate risk: Fixed rates mean missing out if market rates increase later
When to Choose Fixed Deposits
Ideal For
- ✓Risk-averse investors seeking capital protection
- ✓Short to medium-term financial goals (1-5 years)
- ✓Emergency fund diversification
- ✓Senior citizens seeking regular income
Less Suitable For
- ✗Long-term wealth creation (7+ years)
- ✗Beating inflation over long periods
- ✗Investors in higher tax brackets seeking tax efficiency
- ✗Those needing immediate access to all funds
Pro Tip:
Consider a balanced approach by allocating some funds to FDs for stability and safety, while investing the rest in higher-return instruments like mutual funds or stocks for long-term growth.