Fixed Deposit Calculator

Rs.

%
Month Year

Principal Amount

Rs.24,959

Interest Amount

Rs.34,90,279

Maturity Amount

Rs.59,90,279

About Fixed Deposit Calculator

Accessing online Fixed Deposit Calculator, you can conveniently assess the amount your investment in a Fixed Deposit (FD) will yield at the end of the maturity period. Despite a host of investment opportunities in the form of SIP funds, ELSS funds, NPS, recurring deposits & more, Fixed Deposits remain one of the popular financial products owing to its promise of fetching assured and greater return to the investor.

The online FD calculator helps you evaluate FD returns and compare fixed deposit interest rates offered by several banks and pick the most efficient FD for future. Whether you already have an FD account or planning to buy a new FD scheme, we have compiled a quick guide to help investors understand what FD is; How FD interest calculation is carried out; and how an FD scheme is favourable for the consumers. Also, shared below are the best FD rates offered by banks in the market currently.

What is Fixed Deposit (FD)?

A Fixed Deposit or FD is a popular financial instrument offered by banks and NBFCs. It entails a higher rate of interest than a regular Savings Account and thus desirable for surplus funds. Every bank account holder can open a fixed deposit account according to their needs. However, it is not mandatory to have a bank account for a Fixed Deposit.

A Fixed Deposit relatively extends flexible forms of investment opportunity ranging from 7 days to 10 years; and considered much safer than Mutual funds, equity, and debt funds. Besides, your FD investment is covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) and offers income tax and wealth tax benefits.

Features of Fixed Deposit

To understand a financial product, you must always learn about its features. Here is a quick list on salient features of fixed deposits in India.

  • Fixed deposits are the perfect match for surplus funds as it offers much higher interest rate than Savings Account.
  • As the name suggests, it entails a fixed tenure and return rate. You can only deposit once in the account and cannot liquidate in between the tenure.
  • You can start an FD as and when you need one. There is no timeline attached to open an FD.
  • If you wish to invest more, do open another account. You cannot add more amount once the account is opened.
  • It is completely hassle-free to renew an FD account. After maturity of your FD, you can renew the amount on maturity for chosen tenure.
  • Higher FD tenure offers a higher rate of interest.
  • Tax is deducted at source, from interest earned on Fixed Deposits as applicable, as per the Income Tax Act, 1961.

Benefits of Fixed Deposits

After you explore the features of the product, make sure you also figure out what are the key benefits involved.

Here is a quick outline on the advantages of fixed deposits:

  • Safe Investment

    Fixed Deposits are one of the safest investment instruments and offer greater financial stability to the investor.

  • Principal Covered

    The DICGC covers your FD and guarantees up to 100,000 per depositor per bank. So, the returns are assured, and you need not worry about the loss of principal.

  • Periodic Interest Payment

    You can opt for cumulative or non-cumulative Fixed Deposit schemes. In non-cumulative scheme the interest earned is paid periodically, making it an appropriate scheme for pensioners and homemakers. However, choose for the cumulative scheme if you are looking for a standard FD with a fixed lock-in.

  • Assured Returns

    Market Volatility does not affect your returns on Fixed Deposits. The rate of return is fixed, irrespective of market fluctuations.

  • High Rate of Return

    The rate of interest for FD is higher than a Savings Account. Currently, banks and NBFCs are offering 7 to 10 percent rate of return on FDs. 

  • Hassle-Free Early Withdrawal

    In case of emergency, you can withdraw the money early from your FD account. It will only deduct a nominal penalty charge from the amount earned till date.

  • Flexible Tenure

    You can choose the tenure according to your needs. You can opt for a 7-day FD plan to annual plan to 3, 5 or 10 year FD plan.

  • User-Friendly Lock-in

    You can choose the FD tenure according to your ease. Also, the lock-in feature of FD aids the saving habit in the households. Those who find it difficult to save money can conveniently save their money by opting for bank deposit schemes.

  • Higher Return for Senior Citizens

    Fixed Deposits propose a higher rate of interest to senior citizens, making it one of the preferred investment products for recurring income. 

  • Credit Value

    You FD account, you can apply for a secured loan against FD at a rate lower than Personal Loan. Also, there are lesser hassles to apply for a prematurity loan up to the principal amount.

Types of Fixed Deposits

Fixed Deposits extend flexible investment opportunity to the investors. You can choose a deposit plan according to your goals and financial situation.

Here is a quick guide on types of fixed deposits available in India:

Standard Fixed Deposits

Standard Fixed Deposits are the most simple and common forms of FD schemes. Herein you can park your funds for 7 days to 10 years and earn a fixed rate of return. The longer is the tenure; the higher is the return earned. The interest rate is unaffected by the market fluctuations.

Special Fixed Deposits

Special Fixed Deposits are offered by the financial institutions for specific periods, and with certain terms and policies. For example, Special Term Deposit Account by SBI is available for 7 days to 120 months and compounds interest quarterly. The final amount (principal + interest) is however paid on maturity.

Tax Saver Fixed Deposits

Tax Saver Fixed Deposits are long-term FDs for a period of five years. The amount is locked for the duration of FD. The principal invested in this FD Scheme is exempt from taxation, with an upper limit of 1.5 lakhs.

Regular Income Fixed Deposits

Regular Income Fixed Deposits are commonly used by pensioners, homemakers and other individuals with limited monthly income. For, it yields a steady stream of income to the investor. The interest can be paid out monthly or quarterly, as chosen by the investor.

Cumulative Fixed Deposits

In Cumulative Fixed Deposit schemes, interest is compounded at periodic intervals such as on monthly or quarterly basis, ensuring higher returns on maturity.

Flexi Fixed Deposits

A Flexi-Fixed Deposit is a combination of Demand Deposit and Fixed Deposit. Unlike standard FDs, the depositor enjoys liquidity of bank account and also avail higher returns of deposit accounts. The depositor generally starts the account with an initial amount and link the FD account with their Savings Account. The surplus amount over the limit set by you will be transferred to the FD and earn higher interest.

Corporate and Other Fixed Deposits

Corporate FDs pay out the highest rate of interest on deposits. However, you must choose the company with care based on their credit ratings. These FD schemes are offered for a minimum of three years. 

Online FD Calculator

Different banks offer different rates. Always compare rates offered by various financial institutions before picking up any of the offers. In case, you do not know the rate offered, calculate interest rate offered using an FD interest Calculator.

A fixed deposit can be calculated on simple interest or compound interest basis based on cumulative or non-cumulative FD chosen by you.

When you choose an FD with a fixed return on investment at the end of tenor, it is calculated on the basis of Simple Interest.

Formula to calculate amount on Maturity:

Simple Interest (SI) = P x r x t/100

Compound Interest (CI) = P {(1 + i/ 100) n - 1}

Here, P is the principal amount. R is the rate of interest, and t is tenure.

Non-Cumulative Fixed Deposits calculate interest monthly, quarterly, half-yearly or annually and add the interest earned to the principle for calculating further yields.

Online FD calculators are easy-to-use. Fill the amount you want to invest, along with tenure and interest rate and select the frequency of interest compounding. Press the calculate button, and the FD Interest Calculator will let you about the total amount on maturity and return earned on the investment.

FD Rates

FD rates of all Banks and NBFCs vary as they offer different rates for different terms. Most banks and NBFCs extend 7 days FDs to 10 years FDs. The greater duration fetches the greater returns. For comparison, you can refer a quick comparison of rates of top 10 banks and NBFCs FD rates shared below.

Fixed Deposit Rates by Top 10 Banks in India

Top Banks Interest%  rate for 1 year FD plan (regular)

SBI FD rate

6.8% to 6.85%

HDFC Bank FD rate

7.3 % onwards

PNB FD rate

6.75 %

ICICI FD rate

6.9%

Yes Bank FD rate

7.5%

Canara Bank FD rate

7.19%

Kotak Mahindra FD rate

7.5

Deutsche Bank FD rate

8%

Citibank FD rate

6.25%

Bandhan Bank FD rate

7.35%

Fixed Deposit Rates by Top 10 NBFCs in India

Top NBFC Interest%  rate for 1 year FD plan (regular)

Mahindra & Mahindra Finance FD rate

8.3%

TNPF FD rate

7.5 %

Bajaj Finserv FD rate

8.0 %

Muthoot Capital FD rate

7.5 %

HDFC Ltd FD rate

7.98%

KTDFC FD rate

8.25%

PNB HF FD rate

8.45

Shriram City Union Finance FD rate

7.5 %

LIC Housing Finance Ltd FD rate

7.3%

HUDCO FD rate

9.15%

  • Interest rates are subject to change
  • Each bank and NBFC offers a better rate of interest for senior investors (above the age of 60 years).

Fixed Deposit Tax Benefits

Under section 80C of the Income Tax Act, 1961, you can claim a deduction of a maximum of 1.5 lakh by way of investments. You can opt for Tax Saver Fixed Deposit (FD) and enjoy tax benefits. However, the lock-in period of TSFD is 5 years, and the rate of return ranges from 5.5% to 7.75%. The interest earned is however taxable. Besides, you can also apply for a loan on the FD amount at a low rate of interest.

Which is better: Fixed Deposit or Recurring Deposit?

Both Fixed Deposits and Recurring Deposits are popular investment instruments offered by banks and NBFCs. However, the mode of investment varies considerably.

For those investors who have surplus amount to invest, Fixed Deposits are the preferred mode of investment; while those who want to invest minimal amount every month, RDs are more feasible investment schemes.

The purpose of investment primarily defines the ideal product for you. If you are looking for a fixed lock-in and additional rate of return, opt for an FD scheme. For, FDs pay out higher return than RDs.

Both are covered under Section 80 C and interest earned is taxable.

Fixed Deposit - Frequently Asked Questions (FAQs)

Which is the best FD for my profile?

Before you choose your FD, make sure you clearly define the purpose of investing in an FD. Cleary define the amount you want to invest, the purpose of investment, the duration and target amount. Using these parameters you can use an online FD calculator and figure out a ballpark rate of interest you are seeking. Now you can compare available offers and choose the one that is closest to your target. Alternatively, you can compare rates offered by different financial institutions and choose the best rate for your purpose.

Which FD plans are better - from banks or NBFCs?

NBFCs generally offer a higher return on deposits than popular banks. But before you choose the offer, also look into other factors like FD tenure, lock-in clause, and interest calculation. Also factor in the credit rating of the institution, particularly for long-term deposits.

What if I need to close my FD account?

By withdrawing FD amount early, you lose out the future interest and are charged a minimal penalty. However, the principal amount is safe.

Do I need a bank account to open an FD account?

No, it is not mandatory to have a bank account for FD. However, you may get additional benefits like the ones in flexi FD for deposits linked to Savings/ Current Account.

How to compare the FD offers?

Before opting for an FD scheme, do compare the tenure and interest calculation. Also, do not forget to assess the credit rating of an NBFC or financial institution.