FD Calculator
₹
Years
%
Invested Amount
₹ 5,00,000
Interest Earned
₹ 8,42,532
Maturity Amount
₹ 13,42,532
Frequently Asked Questions
A Fixed Deposit (FD) is a safe investment option where you invest a lump sum amount for a fixed period and earn guaranteed interest on it.
FD maturity is calculated using compound interest.
Formula:
A = P × (1 + R / (n × 100))^(n × T)
Where:
P = Principal Amount
R = Interest Rate
n = Compounding Frequency
T = Time (in years)
Formula:
A = P × (1 + R / (n × 100))^(n × T)
Where:
P = Principal Amount
R = Interest Rate
n = Compounding Frequency
T = Time (in years)
Example:
Principal = 1,00,000
Interest Rate = 7% per annum
Tenure = 3 years
Compounding = Quarterly (n = 4)
Step 1:
A = 1,00,000 × (1 + 7 / (4 × 100))^(4 × 3)
Step 2:
A = 1,00,000 × (1 + 0.0175)^12
Step 3:
Maturity Amount ≈ 1,23,100
Interest Earned ≈ 23,100
Principal = 1,00,000
Interest Rate = 7% per annum
Tenure = 3 years
Compounding = Quarterly (n = 4)
Step 1:
A = 1,00,000 × (1 + 7 / (4 × 100))^(4 × 3)
Step 2:
A = 1,00,000 × (1 + 0.0175)^12
Step 3:
Maturity Amount ≈ 1,23,100
Interest Earned ≈ 23,100
Compounding means the interest earned also earns interest. The more frequently interest is compounded (quarterly, monthly), the higher your maturity amount.
Higher compounding frequency (monthly or quarterly) gives slightly higher returns compared to yearly compounding, at the same interest rate.
Yes. The interest earned on FD is taxable as per your income tax slab. Banks may deduct TDS if interest crosses the prescribed limit.
Yes, premature withdrawal is allowed, but it may come with a penalty or reduced interest rate.
FD is considered one of the safest investment options as it offers stable and predictable returns with low risk.