Fixed Deposit โ Smart Financial Analysis
Calculate maturity amount, interest earned, and view growth projections for your fixed deposit investments.
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SBI offers 7.1% for 5-year FDs (general), and 7.6% for senior citizens. FDs offer higher interest (6-8%) than savings accounts (3-4%) but lock your money. Interest can compound quarterly, half-yearly, or annually. Banks typically charge 0.5-1% lower interest for premature withdrawal.
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Why: A fixed deposit is a financial instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. Your money is locked for t...
How: Enter Principal (โน), Annual Interest Rate (%), Term (Years) to get instant results. Try the preset examples to see how different scenarios affect the outcome, then adjust to match your situation.
Run the calculator when you are ready.
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FD Growth Projection
Interest Earned by Tenure
FD vs Savings vs Equity
Principal vs Interest Breakdown
Yearly Breakdown
| Year | Starting | Interest | Ending |
|---|---|---|---|
| Year 1 | โน1,00,000 | โน7,000 | โน1,07,000 |
| Year 2 | โน1,07,000 | โน7,490 | โน1,14,490 |
| Year 3 | โน1,14,490 | โน8,014 | โน1,22,504 |
For educational purposes only โ not financial advice. Consult a qualified advisor before making decisions.
๐ก Money Facts
Fixed Deposit analysis is used by millions of people worldwide to make better financial decisions.
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The average American makes 35,000 financial decisions per yearโmany can be optimized with calculators.
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โ S&P Global
Fixed Deposits are India's most trusted investment โ โน150+ lakh crore ($1.8T) sits in FDs across Indian banks. SBI's 7.1% FD rate turns โน5L into โน7.09L in 5 years. Senior citizens get an extra 0.50% boost. But after 30% tax on interest, real FD returns often lose to inflation. Tax-saver FDs (5yr lock-in) offer Section 80C deductions up to โน1.5L. This calculator projects FD maturity values with compounding.
Sources: RBI, SBI, HDFC Bank, Income Tax India
What is a Fixed Deposit?
A Fixed Deposit locks your money for a fixed tenure at a guaranteed interest rate. Unlike savings accounts, FDs offer higher returns in exchange for reduced liquidity. Cumulative FDs compound interest and pay at maturity; non-cumulative FDs pay interest periodically.
Types of Fixed Deposits
Standard FD
Interest at maturity or periodic payouts. Most common type.
Tax-Saver FD
5-year lock-in, Section 80C deduction up to โน1.5L.
Senior Citizen FD
Extra 0.25-0.50% interest for investors 60+.
Corporate FD
Higher rates from NBFCs; higher risk than bank FDs.
How to Use This Calculator
- Enter principal amount (e.g. โน5,00,000)
- Enter annual interest rate (e.g. 7.1%)
- Set term in years and months
- Choose payout frequency (at maturity, quarterly, etc.)
- Select tax bracket for after-tax returns
- Toggle reinvest interest for compound vs simple interest
FD vs Savings vs Equity
FDs typically yield 6-8%, savings 3-4%, and equity historically 10-12% (with volatility). FDs are ideal for capital preservation; equity for long-term growth. Use the comparison chart above to visualize.
Tax on FD Interest
FD interest is taxable at your slab rate. TDS applies if interest exceeds โน40,000 (โน50,000 for seniors). Submit Form 15H/15G to avoid TDS if total income is below taxable limit. After 30% tax, a 7% FD yields ~4.9% post-tax.
Premature FD Withdrawal
Banks charge 0.5-1% lower interest for premature withdrawal. Tax-saver FDs have no premature withdrawal. Consider FD laddering for liquidity.
FD Laddering Strategy
Split your investment across FDs with staggered maturities (e.g. 1, 2, 3, 4, 5 years). When the shortest matures, reinvest for the longest term. This balances liquidity and returns.
Tips for Maximizing FD Returns
- Compare rates across banks before investing
- Senior citizens get 0.25-0.50% extra
- Reinvest interest for compounding
- Use tax-saver FD for 80C if in higher slab
- Be aware of premature withdrawal penalties
Frequently Asked Questions
What is a fixed deposit (FD)?
A fixed deposit is a financial instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. Your money is locked for the term, and you receive the principal plus interest at maturity. FDs are India's most trusted investment with over โน150 lakh crore in deposits.
What are current FD interest rates in India?
SBI offers 7.1% for 5-year FDs (general), and 7.6% for senior citizens. HDFC Bank and other private banks offer similar or slightly higher rates. Corporate FDs may offer 8-9% but carry higher risk. Rates vary by tenure and bank.
FD vs savings account: which is better?
FDs offer higher interest (6-8%) than savings accounts (3-4%) but lock your money. Savings accounts provide instant liquidity. For short-term emergency funds, use savings; for goals 1+ years away, FDs typically yield better returns.
How does FD compounding frequency work?
Interest can compound quarterly, half-yearly, or annually. Quarterly compounding yields slightly higher returns than annual. Cumulative FDs compound and pay at maturity; non-cumulative FDs pay interest periodically (monthly, quarterly, etc.).
Is FD interest taxable in India?
Yes. FD interest is taxable as "Income from Other Sources" at your slab rate (10%, 20%, or 30%). Banks deduct TDS if interest exceeds โน40,000 (โน50,000 for seniors). Submit Form 15H/15G to avoid TDS if total income is below taxable limit.
What is the premature FD withdrawal penalty?
Banks typically charge 0.5-1% lower interest for premature withdrawal. Some banks use the rate applicable to the actual tenure held. Tax-saver FDs have a 5-year lock-in with no premature withdrawal option.
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