Fixed Deposit (FD) Calculator

How to use FD Calculator

• Enter Principal Investment: Adjust the first slider to specify the initial amount you want to lock in a Fixed Deposit.
• Set Interest Rate: Input the annual interest rate (p.a.) offered by your bank for that specific tenure.
• Select Lock-in Tenure: Determine the duration in years. The calculator will calculate the maturity amount compounding quarterly.

What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a financial instrument offered by banks and non-banking financial companies (NBFCs) in India where investors can deposit a lump-sum amount for a fixed tenure at a predetermined interest rate. FDs are highly popular due to their capital safety, guaranteed returns, and flexible payout schemes.

Fixed Deposit Compounding Formula

Fixed Deposits in India typically compound interest quarterly (4 times a year). The maturity value is computed as:

Example of a Fixed Deposit Calculation

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

• Compounding periods per year (n) = 4
• Tenure (t) = 5 years
• Maturity amount (A) = 1,00,000 × (1 + 0.07 / 4)^(4 × 5) = ₹1,41,478.
• The total interest earned on this deposit is ₹41,478.

Maturity Returns for Common Fixed Deposit Amounts

Here is a quick reference table showing maturity returns for various principal deposits assuming a standard 7.0% bank interest rate over a 5-year lock-in:

Benefits of Investing in Fixed Deposits

• Zero Market Risk: Your principal amount is immune to stock market volatility and returns are guaranteed at the outset.
• Senior Citizen Benefits: Elderly individuals enjoy higher interest rates (usually an additional 0.50%) compared to regular depositors.
• DICGC Insurance Protection: Deposits up to ₹5 Lakhs per bank are fully backed by the RBI's Deposit Insurance and Credit Guarantee Corporation.