Fixed Deposits (FDs) are one of the safest and most popular investment options in India. Use our FD Calculator to instantly determine how much your one-time investment will grow over time through compound interest.
Formula
Frequently Asked Questions
In a cumulative FD, the interest is reinvested along with the principal and paid only at maturity, offering compounding benefits. In a non-cumulative FD, the interest is paid out periodically (monthly/quarterly) as regular income.
Small Finance Banks often offer the highest rates (up to 9%), while major commercial banks offer between 6.5% and 7.5% depending on tenure and age (senior citizens get 0.5% extra).
Yes, interest earned on FDs is fully taxable based on your income tax slab. Banks deduct TDS at 10% if the interest exceeds ₹40,000 in a year (₹50,000 for senior citizens).
Tax Deducted at Source (TDS) is automatically deducted by the bank. You can submit Form 15G or 15H to avoid TDS if your total income is below the taxable limit.
Most banks allow you to open a Fixed Deposit with a minimum of ₹1,000 to ₹5,000.
Yes, most FDs allow premature withdrawal. However, banks usually charge a penalty of 0.5% to 1% on the interest rate applicable for the period the FD was held.
An FD requires a one-time lump sum deposit, whereas a Recurring Deposit (RD) involves making regular monthly deposits of a fixed amount.