About FD Calculator
A Fixed Deposit locks a lump sum with a bank for a set term at a guaranteed interest rate. Returns depend heavily on the compounding frequency — quarterly compounding yields more than annual at the same nominal rate. This calculator shows your maturity amount and total interest earned.
How to use
- Enter your deposit amount.
- Enter the interest rate offered by the bank.
- Set the deposit term and compounding frequency.
- Review the maturity value and interest earned.
Frequently asked questions
How is FD interest calculated?
A = P(1 + r/n)^(nt), where P is the principal, r is the annual rate as a decimal, n is the number of compounding periods per year, and t is the term in years.
Is FD interest taxable?
Yes. In India, FD interest is added to your income and taxed at your slab rate. Banks deduct TDS once interest crosses the annual threshold, and you can submit Form 15G or 15H if your total income is below the taxable limit.
What happens if I withdraw early?
Most banks apply a penalty of around 0.5% to 1% on the applicable rate and pay interest only for the period the deposit was actually held.