FD Calculator

A Fixed Deposit is a financial instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. It offers guaranteed returns and is considered a safe investment option.

FD maturity is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t), where P is principal, r is annual interest rate, n is compounding frequency per year, and t is tenure in years. Our calculator uses this exact formula.

Most banks offer FD tenures starting from 7 days to 10 years. However, popular tenures are 1 year, 3 years, and 5 years. Our calculator supports tenures from 0.5 to 40 years.

Higher compounding frequency (monthly vs annual) yields slightly higher returns. However, most banks compound quarterly or semi-annually. Our calculator supports all four: annual, semi-annual, quarterly, and monthly.

Yes, FD interest is taxable under 'Income from Other Sources' and is added to your total income. Banks also deduct TDS (Tax Deducted at Source) if the interest exceeds ₹40,000 in a financial year.

Yes, most banks allow premature withdrawal, but it usually comes with a penalty (lower interest rate). Some banks may not allow withdrawal before a certain period. Always check with your bank.