FD Calculator (Fixed Deposit)
Accurate Maturity Calculation with Compounding Interest
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%
Yr
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Senior Citizen?
Adds +0.50% extra interest
Invested Amount:
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Interest Earned:
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Maturity Value
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Principal
Interest
Understanding FD Interest Calculation
Banks in India generally use the Compound Interest formula for Fixed Deposits. While the interest rate is quoted “Per Annum”, the compounding happens Quarterly (every 3 months). This means your money grows slightly faster than simple interest.
| Bank Type | General Rate | Senior Citizen |
|---|---|---|
| SBI / HDFC / ICICI | 6.50% – 7.25% | 7.00% – 7.75% |
| Small Finance Banks | 8.00% – 8.50% | 8.50% – 9.00% |
❓ Frequently Asked Questions
Is FD interest taxable?
Yes. Interest earned on FDs is fully taxable as per your income tax slab. Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for Senior Citizens).
What is the lock-in period for Tax Saving FD?
Tax-saving FDs have a mandatory lock-in period of 5 years. You cannot withdraw money prematurely from these deposits.
How does the 0.5% extra for Senior Citizens work?
Most banks offer an additional 0.50% interest rate over the standard card rate for resident senior citizens (aged 60 years and above).
Can I break my FD before maturity?
Yes (except tax-saving FDs). However, banks usually charge a penalty of 0.5% to 1% on the applicable interest rate for premature withdrawals.
Is it safe to invest in FDs?
Yes, FDs are considered very safe. Additionally, bank deposits are insured up to ₹5 Lakhs by DICGC (RBI subsidiary) in case of bank failure.