Fixed Deposit Calculator

What is an FD (Fixed Deposit)?

A Fixed Deposit (FD) is a safe investment where you deposit a lump sum with a bank or NBFC for a fixed period at a fixed interest rate. Your money earns interest, and at maturity you receive the principal plus interest. You can choose to get interest periodically (monthly/quarterly) or let it compound till the end (cumulative FD).

In simple words: you lock your money for a chosen tenure, the institution guarantees a rate, and you get predictable returns. That’s why FDs are popular for short-to-medium term goals and for people who prefer capital safety and steady income.

How Does an FD Work? (Quick Examples)

• Cumulative FD: You invest ₹2,00,000 for 3 years at 7.25% p.a. compounded quarterly. You don’t take any payouts; interest keeps compounding. At maturity, you get principal + accumulated interest.
• Non-Cumulative FD (Monthly Income): You invest ₹5,00,000 for 5 years at 7% p.a. with monthly payouts. You receive a fixed interest amount every month as income; principal comes back at maturity.

FD Interest Calculation (Formula)

Compound Interest (most cumulative FDs):

A = P × (1 + r/m)^(m × t)

Where: P = principal, r = annual rate (in decimal), m = compounding frequency (12 monthly, 4 quarterly, 2 half-yearly, 1 yearly), t = time in years, A = maturity amount.

Example (Quarterly compounding): P = ₹2,00,000, r = 7.25% = 0.0725, m = 4, t = 3.
A = 2,00,000 × (1 + 0.0725/4)^(4×3) ≈ maturity amount. Interest = A − P.

Simple Interest (many short-tenure deposits):

A = P × (1 + r × t)

Example (180 days FD): P = ₹1,00,000, r = 6.5% (0.065), t = 180/365 ≈ 0.493.
A ≈ 1,00,000 × (1 + 0.065 × 0.493) → interest for ~6 months.

Types of FDs in India

• Cumulative FD: Interest is added back (compounded), paid at maturity. Best for growth.
• Non-Cumulative FD: Interest paid monthly/quarterly/half-yearly/yearly. Best for regular income.
• Bank FD vs Corporate FD: Banks offer safety + DICGC cover; top-rated corporates may offer higher rates but need credit-rating checks.
• Tax-Saver FD (5-year lock-in): Eligible for 80C up to ₹1.5 lakh; interest is taxable.
• NRE/NRO FDs: For NRIs—NRE interest is tax-free in India; NRO interest is taxable.
• Senior Citizen FD: Usually 0.25%–0.75% higher interest than regular rates.

FD Interest Payout Options (with Examples)

• Monthly: ₹10,00,000 at 7% p.a. → approx ₹5,833/month (pre-tax). Good for pensioners/side income.
• Quarterly: Same FD → approx ₹17,500 every quarter (pre-tax).
• Cumulative: No interim cash flow; more at maturity due to compounding.

Safety & Insurance

• DICGC cover: Bank deposits are insured up to ₹5 lakh per depositor per bank (principal + interest).
• Corporate FDs: No DICGC; rely on credit ratings (AAA/AA+ …). Higher return can mean higher risk.
• Tip: Diversify across banks/institutions and tenures (laddering) to manage rate/lock-in risk.

Premature Withdrawal & Penalties

• Most FDs allow premature closure with a penalty (e.g., 0.5%–1% lower rate than contracted).
• Some special/Tax-saver FDs do not allow early withdrawal.
• Example: Contracted 7%, but early closure applies 6.25% → recalculated interest at 6.25% for actual days/quarters, minus penalty if applicable.

Taxation, TDS & 15G/15H (Plain English)

• Interest is taxable as “Income from Other Sources”.
• TDS: Banks deduct TDS if annual interest across that bank exceeds the threshold (per current rules). Provide PAN to avoid higher TDS.
• Form 15G/15H: If your total income is below taxable limit (or you’re a senior citizen meeting conditions), submit 15G/15H to request no TDS deduction.
• NRE FD: Interest is tax-free in India (subject to NRI status rules). NRO FD: Interest is taxable.

Bank vs Corporate FD (At a Glance)

Feature	Bank FD	Corporate FD
Typical Rates	Moderate	Often higher
Safety	DICGC cover up to ₹5 lakh	Depends on company & credit rating
Liquidity	Premature withdrawal allowed (penalty)	May have stricter terms/penalties
Who should choose?	Conservative investors	Return-seekers willing to check ratings

About the FinSarthi FD Calculator (Features & How to Use)

The FinSarthi FD Calculator is designed to give quick, realistic results for both cumulative and non-cumulative FDs—on desktop and mobile.

Key Features

• Modes: Cumulative (compounding) & Non-cumulative (monthly/quarterly/half-yearly/yearly payouts)
• Compounding options: Monthly, quarterly, half-yearly, yearly
• Outputs: Maturity amount, total interest, effective annual yield (EAY)
• Schedule view: Month-by-month/quarterly interest growth and payouts
• Senior citizen toggle: Apply higher rates instantly
• TDS estimate: Optional estimate of TDS based on inputs (PAN/15G/15H toggle)
• Laddering helper: Split one large FD into staggered tenures to manage reinvestment risk
• Export: Download CSV of the schedule; share a link with pre-filled inputs
• Privacy-first: All calculations run in-browser; we don’t store your data

How to Use (Step-by-Step)

1. Select Cumulative or Non-Cumulative mode.
2. Enter Deposit Amount, Interest Rate, and Tenure.
3. Choose Compounding Frequency (for cumulative) or Payout Frequency (for non-cumulative).
4. (Optional) Toggle Senior Citizen to apply higher rates.
5. (Optional) Enable TDS estimate and set PAN/15G/15H preference.
6. View Maturity Amount, Total Interest, Effective Annual Yield, and the schedule.
7. Use Laddering to split into 1/2/3-year FDs; compare outcomes.
8. Download the CSV for your records or planning.

FD Returns – Cumulative vs Non-Cumulative (Example)

• Cumulative: ₹3,00,000 for 3 years @ 7.25% p.a., compounding quarterly → higher maturity due to compounding.
• Monthly Payout: ₹10,00,000 @ 7% p.a. → approx ₹5,833/month (pre-tax). Principal (₹10 lakh) comes back on maturity.

Common FD Strategies (With Examples)

• Laddering: Split ₹6,00,000 into three FDs—₹2,00,000 each for 1, 2, and 3 years. When the 1-year FD matures, reinvest at new rates. This reduces reinvestment risk and gives periodic liquidity.
• Goal-based: For a goal in 18 months, choose a matching FD tenure so maturity aligns with the goal date.
• Income planning: Prefer non-cumulative with monthly payouts to cover regular expenses.

FAQs on FD (Expanded)

1) Is FD safe?

Bank FDs are considered safe and are covered by DICGC up to ₹5 lakh per depositor per bank. Corporate FDs depend on company strength and credit ratings.

2) What is the minimum and maximum tenure?

Banks typically offer from 7 days up to 10 years. Corporate FD tenures vary by issuer.

3) Can I withdraw before maturity?

Usually yes, but a penalty applies (reduced interest rate and/or fee). Some special/Tax-saver FDs don’t allow premature closure.

4) How is interest paid in non-cumulative FDs?

Monthly/quarterly/half-yearly/yearly, directly to your bank account. Principal is returned at maturity.

5) How is FD interest taxed?

Interest is fully taxable as per your slab. Banks may deduct TDS beyond threshold limits. Submit PAN to avoid higher TDS; use 15G/15H where eligible.

6) Do senior citizens get higher interest?

Yes, typically +0.25% to +0.75% p.a. over regular rates. Use the senior citizen toggle in our calculator.

7) What is Effective Annual Yield (EAY)?

It’s the actual annualized return after considering compounding frequency. Quarterly compounding yields more than annual at the same nominal rate.

8) Can I take a loan against my FD?

Yes, many banks offer loans/overdrafts against FDs (typically 80–90% of FD value) at a rate slightly above your FD rate.

9) Should I choose bank FD or corporate FD?

If safety is priority, prefer banks (DICGC cover). If chasing higher returns, consider top-rated corporate FDs after checking ratings and terms.

10) What is auto-renewal?

On maturity, the FD is automatically renewed for the same tenure at the prevailing rate unless you opt out. Review rates before enabling.

11) Can I have a joint FD or nominate someone?

Yes. Joint holding and nomination are available. Always add a nominee for easy claim processing.

12) Are NRE/NRO FDs taxed?

NRE FD interest is tax-free in India (subject to NRI status). NRO FD interest is taxable. Repatriation rules apply—check with your bank.

13) What happens if I don’t have PAN?

Banks may deduct higher TDS. Always update PAN to avoid higher deduction and to reflect interest income correctly in tax records.

14) Why does my payout look slightly different from simple math?

Because banks use specific compounding conventions, day counts, and rounding. Our calculator mirrors standard compounding choices (monthly/quarterly/half-yearly/yearly) for realistic estimates.

15) Can minors open FDs?

Yes, via a guardian. On turning 18, the account can be regularized in the minor’s name.

Final Thoughts – Use the FinSarthi FD Calculator to Plan Smartly

FDs are perfect for capital safety, predictable income, and short-to-medium term goals. With the FinSarthi FD Calculator, you can compare cumulative vs payout options, check senior-citizen benefits, estimate TDS, export schedules, and even ladder your deposits to balance returns and liquidity.

Enter your numbers above and see how your money can grow—clearly, quickly, and confidently.