FD Calculator

What is a Fixed Deposit?

A Fixed Deposit (FD) is an investment product offered by banks where you deposit a lump sum for a fixed period at a predetermined interest rate. The interest is calculated using compound interest, meaning you earn interest on your principal as well as on the accumulated interest.

How FD Interest Works

The formula for compound interest is:

Where:

• A = Final maturity amount
• P = Principal (initial deposit)
• r = Annual interest rate (in decimal)
• n = Compounding frequency per year
• t = Time in years

Example Calculation

$100,000 at 6.5% annual interest, quarterly compounding, for 3 years:

• Interest earned: $21,136
• Maturity amount: $121,136

Key FD Features

• Safety: FDs are one of the safest investment options
• Predictable returns: Interest rate is fixed upfront
• Tax implications: Interest is taxable as per your income tax slab
• Premature withdrawal: Usually allowed with penalty
• Liquidity: Money is locked in for the chosen period

Disclaimer

This calculator provides estimates based on the inputs you provide. Actual returns may vary based on bank policies, interest rate changes, and tax regulations. Please consult with your bank or financial advisor for accurate information.