Term Deposit Calculator
Calculate term deposit returns and maturity amount
Deposit Details
Deposit Results
Yearly Growth
Disclaimer
These are computer-generated calculations for informational purposes only. Actual returns may vary based on bank policies and market conditions. Please verify with your bank before making deposit decisions. The calculations may not be 100% accurate.
What is a Term Deposit Calculator?
A Term Deposit calculator is a financial tool that helps you calculate the maturity amount and interest earned on your deposit investment. It uses compound interest formulas to determine how much your money will grow over the deposit tenure.
Fixed deposits are low-risk investment instruments offered by banks and financial institutions where you deposit a lump sum for a predetermined period at a fixed interest rate. The FD calculator helps you plan your investments and compare different FD schemes.
How to Calculate FD Returns
FD Compound Interest Formula
The formula for calculating FD maturity amount is:
Where:
- A = Maturity Amount
- P = Principal Amount (Initial Deposit)
- r = Annual Interest Rate (as decimal)
- n = Compounding Frequency per year
- t = Time period in years
Compounding Frequencies
- Annually (n=1): Interest compounded once per year
- Half-yearly (n=2): Interest compounded twice per year
- Quarterly (n=4): Interest compounded four times per year
- Monthly (n=12): Interest compounded twelve times per year
Calculation Example
Example calculation at 6.5% for 5 years with quarterly compounding:
A = 1,00,000 × (1 + 0.065/4)^(4×5)
A = 1,00,000 × (1.01625)^20
Final amount will be approximately 38% more than principal
Interest earned will be about 38% of the principal amount
Types of Fixed Deposits
Regular Fixed Deposit
- Standard FD with fixed tenure and interest rate
- Interest paid at maturity or periodically
- Penalty for premature withdrawal
- Suitable for conservative investors
Tax Saver FD
- 5-year lock-in period
- Tax deduction under Section 80C
- No premature withdrawal allowed
- Interest is taxable
Senior Citizen FD
- Higher interest rates (0.25-0.75% extra)
- Available for citizens above 60 years
- Same terms as regular FD
- Better returns for retired individuals
Flexi Fixed Deposit
- Partial withdrawal facility
- Automatic sweep-in/sweep-out
- Maintains liquidity while earning FD rates
- Ideal for emergency fund management
FD Investment Strategies
Laddering Strategy
Divide your investment across multiple FDs with different maturity dates. This provides regular liquidity and helps reinvest at potentially better rates.
Interest Rate Timing
Monitor interest rate cycles. Invest in longer-term FDs when rates are high, and shorter-term FDs when rates are expected to rise.
Tax Planning
Consider tax implications. Interest above certain thresholds may be taxable based on local tax laws. Plan FD maturity to optimize tax liability.
Bank Selection
Compare rates across banks, NBFCs, and small finance banks. Higher rates often come with higher risk, so balance returns with safety.
Frequently Asked Questions
What is the minimum amount for FD?
Most banks have minimum deposit requirements for opening an FD, which vary by institution. There's typically no maximum limit for FD investments.
Can I withdraw FD before maturity?
Yes, but premature withdrawal usually attracts a penalty of 0.5-1% on the interest rate. Some banks don't allow premature withdrawal for FDs with tenure less than 7 days.
How is FD interest taxed?
FD interest is added to your income and taxed as per your tax slab. Banks may deduct tax at source if interest exceeds certain thresholds. Check with your bank about tax exemption forms if applicable.
Which is better - monthly or cumulative FD?
Cumulative FDs offer higher returns due to compounding effect. Choose monthly interest FDs only if you need regular income. For wealth accumulation, cumulative FDs are better.
What happens to FD after maturity?
Most banks auto-renew FDs at prevailing rates if not claimed within 14 days of maturity. You can provide instructions for auto-renewal, transfer to savings account, or partial withdrawal.