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FD calculator
Calculate what a cumulative fixed deposit pays at maturity and the yield you actually earn after compounding.
The formula
A = P × (1 + r ÷ k)^(k × t)
P is the deposit, r the annual rate, k the number of compounding periods a year and t the tenure in years. Most Indian banks compound quarterly, so k is 4. ₹1,00,000 at 7% for five years matures at about ₹1,41,478, an effective yield of 7.19% a year.
What reduces the return
FD interest is added to your income and taxed at your slab rate each year, whether or not you receive it. Banks deduct TDS once interest crosses the annual threshold (₹50,000 for most depositors and ₹1,00,000 for senior citizens from FY 2025-26). At a 30% slab, a 7% FD earns about 4.9% after tax, which may not beat inflation. Breaking a deposit early usually costs 0.5 to 1 percentage point of interest.
Questions
Is my FD safe?
Deposits in a bank are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest together. Spreading large sums across banks keeps each within the limit.
Cumulative or payout?
Cumulative deposits reinvest interest and suit goals. Monthly or quarterly payout deposits suit people who need income; their total return is lower because interest is not compounded.