FD Calculator
A Fixed Deposit (FD) is one of the safest investment options in India, offering guaranteed returns with capital protection. Banks compound FD interest quarterly by default, which means your interest earns interest too.
FD Details
1 yr 0 mo
FD Maturity Summary
- Maturity Amount
- ₹1.07 L
- Total Interest Earned
- ₹7,186
- Principal Invested
- ₹1,00,000
- Effective Annual Rate
- 7.19%
Month-wise Projection
Frequently Asked Questions
What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum with a bank for a fixed tenure at a predetermined interest rate. At maturity, you receive the principal plus accumulated interest.
Which compounding frequency gives the best returns?
More frequent compounding gives higher effective returns. Monthly compounding > quarterly > half-yearly > annual. However, most Indian banks compound FDs quarterly by default.
Is FD interest taxable?
Yes. FD interest is fully taxable as "income from other sources" at your applicable income tax slab rate. TDS is deducted at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
What is the difference between cumulative and non-cumulative FD?
Cumulative FD reinvests the interest and pays out the total at maturity. Non-cumulative FD pays interest periodically (monthly/quarterly). Cumulative FDs earn more due to compounding.
Can I break an FD before maturity?
Yes, most banks allow premature withdrawal with a small penalty (typically 0.5%–1% reduction in the applicable rate). Some tax-saving FDs (5-year lock-in) cannot be broken early.