Fixed Deposit (FD) Calculator
Calculate the maturity amount and interest earned on your Fixed Deposit.
Fixed Deposit (FD) Investment Guide
A Fixed Deposit (FD) is one of the safest and most popular traditional investment options offered by banks and non-banking financial companies (NBFCs). By locking your money for a fixed tenure, you earn a guaranteed rate of return that is significantly higher than a standard savings account. Our FD Calculator instantly shows you exactly how much your money will grow.
How Do Fixed Deposits Work?
When you open an FD, you deposit a lump sum of money with a financial institution for a predetermined period (tenure), which can range from 7 days to 10 years. The bank pays you a fixed interest rate for the duration of the deposit.
- Cumulative FD: The interest earned is compounded (reinvested) and paid out along with the principal amount at the time of maturity. This offers the highest overall return.
- Non-Cumulative FD: The interest earned is paid out to you at regular intervals (monthly, quarterly, or annually). This is ideal for retirees or individuals seeking a regular secondary income stream.
Benefits of Investing in an FD
- Guaranteed Returns: Unlike mutual funds or stocks, FD returns are not linked to market performance. Your capital is 100% protected and the interest rate is locked in.
- Flexible Tenure: You have the freedom to choose a tenure that aligns perfectly with your short-term or long-term financial goals.
- Tax Saver FDs: Some countries (like India) offer specific 5-year Tax Saver FDs that allow you to claim deductions on your taxable income, although the lock-in period is strict.
- Loan Against FD: In times of financial emergency, you can easily take a loan or overdraft against your FD without having to break it entirely.
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