What is a Fixed Deposit?

A Fixed Deposit (FD) is a secure investment option offered by banks and NBFCs where you deposit a lump sum for a fixed period at a fixed interest rate. It’s one of the safest investment options in India, ideal for those seeking stable returns.

FD Calculator Formula

The maturity value of an FD is calculated using the compound interest formula:

M = P × (1 + r/n)^(n×t)

Where:

• M = Maturity Amount
• P = Principal Amount
• r = Annual Interest Rate (in decimal)
• n = Compounding frequency (monthly = 12, quarterly = 4, etc.)
• t = Tenure (in years)

How to Use the FD Calculator

1. Enter the deposit amount.
2. Enter the annual interest rate.
3. Enter the tenure in years.
4. Select the compounding frequency.
5. Click “Calculate Maturity” to get results instantly.

Example FD Calculation

If you invest ₹1,00,000 at 7% annual interest for 5 years with quarterly compounding:

• P = ₹1,00,000
• r = 0.07
• n = 4
• t = 5

Maturity Amount = ₹1,40,255 | Interest Earned = ₹40,255

Benefits of Using Our FD Calculator

• Instant calculation of maturity value.
• Supports multiple compounding frequencies.
• Helps compare FD returns across banks.
• Accurate formula used by financial institutions.

Factors That Affect FD Returns

• Deposit amount
• Interest rate offered
• Tenure of investment
• Compounding frequency

FAQs About FD Calculation

Q: Is FD interest taxable?
A: Yes, interest from FD is taxable as per your income tax slab.

Q: Can I break my FD before maturity?
A: Yes, but premature withdrawal may attract penalties.

Q: Does higher compounding frequency mean more returns?
A: Yes, because interest is calculated more frequently.

Summary

Use our FD Calculator to plan your investments better and compare returns across banks. By knowing the maturity amount in advance, you can make informed financial decisions and grow your wealth steadily.