What is the difference between cumulative and non-cumulative FD?

In a cumulative FD, the interest is compounded and paid out at maturity along with the principal amount. This allows your interest to earn interest, maximizing your returns. In a non-cumulative FD, interest is paid out at regular intervals (monthly, quarterly, etc.), providing a regular income stream, but it does not get compounded. This calculator computes returns for cumulative FDs.

Is the interest earned on an FD taxable?

Yes, the interest income from a Fixed Deposit is fully taxable in India. It is added to your total income and taxed as per your applicable income tax slab. Banks are also required to deduct TDS (Tax Deducted at Source) if the interest income exceeds a certain threshold in a financial year.

What is a tax-saving FD?

A tax-saving FD is a special type of Fixed Deposit that allows you to claim a deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. These FDs have a mandatory lock-in period of 5 years, and premature withdrawal is not allowed. While the investment is tax-deductible, the interest earned is still taxable.

Fixed Deposit (FD) Calculator

Calculate the maturity amount and interest earned on your Fixed Deposit.

Investment Details

Total Investment₹1,00,000

Interest Rate (% p.a.)7.00%

Time Period (Years)5 Years

Compounding Frequency

Enter details to see the FD maturity value.

Share this calculator

About the FD Calculator

Understand Fixed Deposits, their benefits, and how to calculate your returns.

What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a secure investment instrument offered by banks and non-banking financial companies (NBFCs) in India. It provides investors with a higher rate of interest compared to a regular savings account for a specified period, known as the tenure. You invest a lump sum amount for a fixed tenure at an agreed-upon rate of interest. The returns are generally guaranteed, making it one of the safest investment options for conservative investors looking to protect their capital while earning a predictable return.

How This Calculator Works

This calculator is a straightforward tool designed to help you determine the future value (maturity amount) of your FD investment. To get an accurate projection, you need to provide a few key details. Use the sliders to input your 'Total Investment' (the lump sum you are depositing), the annual 'Interest Rate' offered by the financial institution, and the 'Time Period' for which you plan to lock in your investment. A crucial input is the 'Compounding Frequency,' which determines how often the earned interest is added back to the principal. Most banks in India compound interest quarterly. The calculator then uses the compound interest formula to compute the final maturity value and also shows a clear breakdown of your initial investment versus the total interest earned over the entire tenure.

Practical Applications

An FD is a cornerstone of safe investment portfolios in India and serves many practical purposes for individuals at different life stages. This calculator can be an invaluable aid for:

Goal Planning: See exactly how much a specific lump sum investment will grow over time, allowing you to plan for financial goals like a down payment on a house, a car purchase, or funding a wedding.
Comparing Banks: Easily compare FD offers from different banks. By simply changing the interest rate and compounding frequency in the calculator, you can quickly see which institution provides the best return on your investment.
Retirement Savings: FDs are a reliable way to park a portion of your retirement funds to generate predictable, risk-free returns, providing stability to your overall retirement portfolio.
Tax-Saving FDs: While our calculator is general-purpose, it can be used to calculate returns for tax-saving FDs as well. Just remember that these specific FDs come with a mandatory lock-in period of 5 years.

Note: The interest earned on FDs is taxable as per your income tax slab. This calculator does not account for TDS (Tax Deducted at Source) or any other taxes.