FD Calculator
A Fixed Deposit (FD) is a low-risk investment product offered by banks and NBFCs in India. FDs offer guaranteed interest rates over fixed tenures, with quarterly compounding standard across most Indian banks.
Input Calculation Parameters
₹
%
Years
Calculation Results
Total Interest Earned
0
Maturity Payout Value
0
How the Calculation Works
A = P x (1 + r/4)^(4n), assuming standard quarterly compounding interest.
Worked Example
Here is a step-by-step example calculation for ₹5 Lakh FD @ 7.25% p.a. for 5 Years (Quarterly Compounding):
| Parameter | Value |
|---|---|
| Principal | ₹500,000 |
| Interest Earned | ₹2,15,648 |
| Maturity Value | ₹7,15,648 |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| 1 Year Tenure | Interest: ₹37,250 |
| 3 Year Tenure | Interest: ₹1,20,150 |
| 5 Year Tenure | Interest: ₹2,15,648 |
Common Mistakes to Avoid
- Ignoring TDS under Section 194A when FD interest exceeds ₹40,000 per financial year (₹50,000 for senior citizens).
Frequently Asked Questions (FAQs)
Is FD interest taxable in India?
Yes, FD interest is added to your total income and taxed according to your applicable income tax slab.
What is DICGC deposit insurance limit?
Bank deposits up to ₹5 Lakh (principal + interest) per bank are insured by DICGC (RBI subsidiary).
Authoritative Sources & Regulatory References
Author: SmartPaisa Financial Research Team
Reviewer: Reviewed by Financial Engineering Team
Last Reviewed: 2026-08-17
Financial Disclaimer: This calculator provides estimates for educational purposes only based on standard mathematical formulas and current Indian regulatory guidelines. Actual returns, taxes, or EMI payments may vary depending on bank policies, market volatility, or individual tax brackets. Consult a SEBI-registered investment advisor or Chartered Accountant (CA) before making financial decisions.
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