FD Calculator
Estimate maturity amount and interest earned on your Fixed Deposit.
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is one of the safest investment instruments offered by banks and NBFCs in India. You deposit a lump sum for a fixed tenure at a predetermined interest rate. The interest compounds at regular intervals — quarterly, half-yearly, or yearly — and you receive the maturity amount at the end of the tenure.
FDs are ideal for risk-averse investors looking for guaranteed returns. Most banks offer interest rates between 5% and 7.5% p.a. for regular citizens, with senior citizens receiving an additional 0.25%–0.50% premium.
FD vs RD — Which is Better?
Fixed Deposit (FD) requires a one-time lump sum investment, while a Recurring Deposit (RD) allows you to invest a fixed amount every month. Here are the key differences:
- Investment style: FD is lump sum; RD is monthly instalments.
- Interest rate: FD generally offers slightly higher rates than RD for the same tenure.
- Effective returns: Since the full principal earns interest from day one in FD, the total interest earned is typically higher than RD for the same total invested amount.
FD Tax Rules in India
Interest earned on Fixed Deposits is fully taxable and added to your total income. Key tax rules you should know:
