Calculate maturity amount, interest earned, and effective yield – now with multi‑currency support and yearly breakdown.
Fixed Deposits (FDs) are investment instruments offered by banks and NBFCs where you can deposit a lump sum amount for a fixed tenure at a predetermined interest rate. They offer guaranteed returns and are considered low-risk investments.
Deposit Amount
₹5,00,000
Interest Earned
₹2,24,364
Maturity Value
₹7,24,364
Effective Yield
7.5%
| Year | Opening Balance | Interest | Closing Balance |
|---|
A Fixed Deposit (FD), also known as a term deposit, is one of the most popular investment instruments in many countries, especially in India. It allows you to invest a lump sum amount for a fixed period at a predetermined interest rate, earning guaranteed returns. In this comprehensive guide, we’ll cover how FD maturity is calculated, the impact of compounding frequency, tax implications, and how our multi‑currency calculator can help you plan better.
For cumulative FDs where interest is reinvested, the maturity amount is calculated using the compound interest formula:
For non‑cumulative FDs (interest paid out periodically), simple interest is applied: Interest = P × r × t. The principal remains constant, and the payout does not earn further interest.
Suppose you deposit ₹5,00,000 at 7.5% p.a. for 5 years, compounded quarterly (n=4). Using the formula:
A = 5,00,000 × (1 + 0.075/4)4×5 = 5,00,000 × (1.01875)20 ≈ ₹7,24,364
Interest Earned = ₹7,24,364 – ₹5,00,000 = ₹2,24,364
Our calculator above does this instantly for any tenure, payout option, and currency. Try changing the payout frequency to see the effect.
Interest earned from FDs is fully taxable as per your income tax slab. Banks deduct TDS at 10% (if PAN is provided) or 20% (without PAN) if interest exceeds the threshold. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit. For NRIs, TDS is applicable at a higher rate. Always consult a tax advisor.
The calculator at the top lets you choose from INR, USD, EUR, GBP, and JPY. Simply select your currency, and all amounts (deposit, interest, maturity) will display with the corresponding symbol. This is particularly useful for NRIs comparing FD rates in different countries or for international investors. Note: No actual currency conversion is applied; it simply changes the symbol.
Q: What is the minimum tenure for an FD?
Banks offer FD tenures ranging from 7 days to 10 years. Some NBFCs may offer up to 20 years.
Q: Can I withdraw my FD before maturity?
Yes, most FDs allow premature withdrawal, but a penalty (usually 0.5%–1%) may apply.
Q: What is the difference between FD and RD?
FD requires a one-time lump sum; RD requires monthly investments. Both offer fixed returns.
Q: How is FD interest calculated for senior citizens?
Senior citizens usually get an additional 0.25%–0.75% interest. Use the calculator with the higher rate.
Q: Is FD interest compounded monthly or quarterly?
In India, most banks compound interest quarterly, though some may offer monthly compounding for specific schemes.
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This calculator provides estimates based on the inputs provided. Actual returns may vary due to changes in interest rates, tax deductions, or bank policies. Always verify with your financial institution before making investment decisions. Finance Toolbajar is not liable for any losses or discrepancies.
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