FD Calculator
Many investors prefer fixed deposits (FDs), which are lump sum, one-time investments. Using our online FD Interest Calculator, you can calculate your interest and total earnings. This free application provides rapid and accurate calculations, allowing you to better plan your future finances.
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
About Fixed Deposit Calculator
Using an online Fixed Deposit Calculator, you can easily determine how much your investment in a Fixed Deposit (FD) will yield at the conclusion of the maturity period. Despite a plethora of investment options such as SIP funds, ELSS funds, NPS, recurring deposits, and others, Fixed Deposits remain one of the most popular financial products due to its promise of providing a consistent and higher return to the client.
The online FD calculator allows you to evaluate FD returns, compare fixed deposit interest rates given by several banks, and select the most economical FD for the future. Whether you already have an FD account or are looking to acquire a new FD scheme, we have produced a simple guide to help investors understand what an FD is, how FD interest is calculated, and how an FD scheme benefits consumers. In addition, the greatest FD rates currently available from banks are listed below.
What is Fixed Deposit (FD)?
A Fixed Deposit (FD) is a common financial instrument offered by banks and NBFCs. It offers a higher rate of interest than a conventional Savings Account, making it ideal for surplus funds. Every bank account holder can open a fixed deposit account based on their requirements. However, a bank account is not required for a Fixed Deposit.
A fixed deposit provides a more flexible form of investment opportunity, ranging from 7 days to 10 years, and is deemed considerably safer than mutual funds, equity, and debt funds. Furthermore, your FD investment is protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC) and provides income 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 an excellent choice for surplus funds because they offer substantially greater interest rates than savings accounts.
- As the name implies, it has a fixed term and return rate. You can only deposit once in the account and cannot liquidate it during the duration.
- You can start an FD as needed. There is no time limit to open an FD.
- If you want to invest more, start another account. Once the account has been opened, you cannot add any additional funds.
- Renewing an FD account is absolutely hassle-free. After your FD matures, you can renew the amount for the set duration.
- A longer FD duration yields 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’ve looked at the product’s characteristics, make sure you understand the primary benefits.
Here is a quick overview of the advantages of fixed deposits:
- Safe investment. Fixed deposits are among the safest investment instruments, providing more financial security to the client.
- Principal Covered The DICGC insures your FD and guarantees up to $100,000 per depositor per bank. As a result, the returns are guaranteed, and there is no risk of principal loss.
- Periodic Interest Payment You can choose between cumulative and non-cumulative fixed deposit programmes. Non-cumulative schemes pay out interest on a regular basis, making them ideal for pensioners and homemakers. However, if you want a normal FD with a fixed lock-in, use the cumulative scheme.
- Guaranteed Returns Fixed deposits’ returns are unaffected by market volatility. The rate of return is constant regardless of market volatility.
- High rate of return. FDs pay larger interest rates than savings accounts. Currently, banks and NBFCs provide 7 to 10 percent returns on FDs.
- Hassle-free early withdrawal In the event of an emergency, you can withdraw funds from your FD account early. It will simply subtract a modest penalty charge from the total amount collected to date.
- Flexible tenure You can select the tenure according on your demands. You can choose between a 7-day FD plan, an annual plan, a 3, 5, or 10-year FD plan.
- User-Friendly Lock-In You can choose the FD tenure that works best for you. In addition, the lock-in aspect of FDs promotes household savings habits. Those who struggle to save money might do so more easily by taking advantage of bank deposit options.
- Higher Returns for Senior Citizens Fixed deposits offer a greater rate of interest to older citizens, making them one of the most popular investment options for recurring income.
- Credit Value With your FD account, you can apply for a secured loan at a cheaper rate than a personal loan. Furthermore, it is easier to apply for a preterm loan up to the principal amount.
Types of Fixed Deposits
Standard Fixed Deposit:It is the simplest and most common form of FD scheme. Here you can store your funds for anywhere from 7 days to 10 years and earn a fixed return. The longer the period, the higher the return. Interest rates are not affected by market fluctuations.
Special Time Deposits are provided by financial institutions for a certain period of time under certain conditions and guidelines. For example, SBI’s special fixed deposit accounts are available for periods ranging from 7 days to 120 months and earn quarterly interest. However, the final amount (principal + interest) must be paid by the due date.
Tax Saving Fixed Deposit is a long term FD with a maturity of 5 years. The amount will be blocked for the duration of the FD. The capital invested in this FD scheme is tax free up to 1. 5 million rupees. Fixed deposits with fixed income Fixed deposits with fixed income are used by many people with limited monthly income, such as retirees and housewives. Because it provides investors with stable income. Interest can be paid monthly or quarterly, depending on the investor’s preference.
Cumulative Fixed Deposits In cumulative fixed deposits, interest is compounded at regular intervals, for example monthly or quarterly, ensuring a higher return on maturity.
Flexi Term Deposit is a combination of demand deposit and term deposit. Unlike a standard FD, the depositor enjoys the liquidity of a bank account and also benefits from higher returns from the deposit account. A depositor usually opens an account with an initial amount and links the FD account with his or her savings account. The amount above the set limit will be transferred to FD and earn higher interest.
Corporate and Other Fixed Deposits Corporate FDs pay the highest interest rate on deposits. However, you should choose the company carefully based on its credit rating. These FD programs are offered for a minimum of three years.
Online FD Calculator
Different banks provide different rates. Always examine the rates offered by several financial organisations before accepting any of the offers. If you do not know the interest rate given, use an FD Interest Calculator to determine it.
A fixed deposit can be computed using either simple interest or compound interest, depending on whether you choose a cumulative or non-cumulative FD.
When you choose an FD with a fixed return on investment at the end of the tenor, the calculation is based on 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
The FD rates of all banks and NBFCs varies since they offer different rates for different terms. Most banks and NBFCs offer 7-day to 10-year FDs. The longer the term, the bigger the returns. For comparison, see the list of top ten banks and NBFCs’ FD rates below.
Fixed Deposit Rates by Top 10 Banks in India
| Top Banks | Interest rate for 1 year FD plan (regular) |
| SBI FD rate | 2.90% – 5.40% |
| HDFC Bank FD rate | 2.50% – 5.50% |
| PNB FD rate | 5.90% – 6.70% |
| ICICI FD rate | 6.00% – 6.50% |
| Yes Bank FD rate | 3.50% – 6.75% |
| Canara Bank FD rate | 2.95% – 5.50% |
| Kotak Mahindra FD rate | 2.50% – 4.75% |
| Deutsche Bank FD rate | 3.65% – 5.50% |
| Citibank FD rate | 2.40% – 3.50% |
| Bandhan Bank FD rate | 3.00% – 6.00% |
Fixed Deposit Rates by Top 10 NBFCs in India
| Top NBFC | Interest% rate for 1 year FD plan (regular) |
| Mahindra & Mahindra Finance FD rate | 5.25% to 6.40% |
| TNPF FD rate | 7.25% to 8.00% |
| Bajaj Finserv FD rate | 7.25 % |
| Muthoot Capital FD rate | 9.05% |
| HDFC Ltd FD rate | 5.65% – 6.25% |
| KTDFC FD rate | 6% |
| PNB HF FD rate | 5.90% – 6.70% |
| Shriram City Union Finance FD rate | 7.50% – 8.40% |
| LIC Housing Finance Ltd FD rate | 5.65% – 5.75% |
| HUDCO FD rate | 7.25% |
- 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
Section 80C of the Income Tax Act of 1961 allows you to claim a maximum deduction of 1.5 lakh for investments. You can take advantage of tax breaks by opening a Tax Saver Fixed Deposit (FD). However, the lock-in period for TSFD is 5 years, and the rate of return ranges from 5.5% to 7.75%. However, the interest earned is taxable. In addition, you can request for a low-interest loan against the FD amount.
Which is better: Fixed Deposit or Recurring Deposit?
Fixed Deposits and Recurring Deposits are popular investment options provided by banks and NBFCs. However, the mode of investment differs significantly.
Fixed Deposits are the favoured option of investment for investors with excess funds; RDs, on the other hand, are more viable investment schemes for individuals who want to deposit a small sum each month.
The objective of your investment determines the best product for you. If you want a fixed lock-in and a higher rate of return, consider an FD scheme. For example, FDs pay a higher return than RDs.
Both are covered by Section 80 C, and the interest earned is taxed.
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FD Calculator FAQs
Before you choose an FD, be sure you understand why you’re investing in one. Clearly describe the amount you wish to invest, the purpose of the investment, the period, and the target amount. Using these characteristics, you can use an online FD calculator to get the ballpark rate of interest you are seeking. Now you can compare available offers and select the one that is closest to your goals. Alternatively, you can compare rates offered by several financial institutions to find the best rate for your needs.
NBFCs typically provide a better return on deposits than traditional banks. However, before you accept an offer, consider other criteria such as FD tenure, lock-in clause, and interest calculation. Consider the credit rating of the institution, especially for long-term deposits.
By withdrawing the FD amount early, you forfeit future interest and face a minor penalty. However, the principle amount is safe.
No, it is not necessary to have a bank account for FD. However, you may be eligible for additional benefits similar to those found in flexi FDs for deposits linked to a Savings/ Current Account.
Before deciding on an FD scheme, compare the duration and interest computation. Do not overlook the credit rating of an NBFC or financial institution.