How This Works
A Fixed Deposit (FD) is a lump-sum deposit with a bank or NBFC for a fixed tenure at a fixed interest rate. Most Indian banks compound FD interest quarterly, which this calculator uses to project your maturity value from your deposit amount, interest rate, and tenure.
FDs are popular for their capital safety and guaranteed, fixed returns — unlike market-linked investments such as mutual funds, the return on an FD does not fluctuate once booked.
Frequently Asked Questions
How is FD interest calculated?
Most banks compound FD interest quarterly: interest is calculated on the principal plus previously accrued interest at the end of each quarter, so the effective annual return is slightly higher than the quoted nominal rate.
Is FD interest taxable?
Yes, interest earned on a Fixed Deposit is added to your taxable income and taxed at your applicable income tax slab rate. Banks also deduct TDS if the interest exceeds the prescribed threshold in a financial year.
FD vs RD — what’s the difference?
An FD is a one-time lump-sum deposit, while a Recurring Deposit (RD) involves depositing a fixed amount every month. Use the RD calculator if you want to build a corpus through regular monthly deposits instead of a single deposit.
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