About fd calculator
A fixed deposit (FD) locks your money for a period at a fixed rate. The calculator shows the maturity amount and interest earned.
Compounding
Banks usually compound FD interest quarterly. ₹1,00,000 at 7% for 5 years compounded quarterly grows to about ₹1,41,478.
Points to check
- Senior citizens often get a higher rate.
- Premature withdrawal usually carries a penalty.
- Interest is taxable, and banks may deduct TDS above a threshold.
- Deposits in banks are insured up to a limit by DICGC.
A worked example
₹2 lakh placed for 3 years at 7.25 percent with quarterly compounding grows to about ₹2.48 lakh, an interest of about ₹48,100. Interest is taxable as income, so the real return after tax depends on your tax slab.
Laddering
- Split a large sum into several deposits with different maturity dates.
- That way part of the money becomes available regularly.
- You also avoid breaking a single large deposit early and paying a penalty.
