Fixed Deposit Calculator
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Safe Returns
Guaranteed returns with capital protection
Higher Interest
Better rates than savings accounts
Flexible Tenure
7 days to 10 years investment options
Loan Facility
Borrow up to 90% against FD
Understanding Fixed Deposits & Term Deposits
A Fixed Deposit (FD) or Term Deposit or Certificate of Deposit (CD) is a safe investment instrument offered by banks and financial institutions worldwide. You deposit a lump sum for a fixed period at a predetermined interest rate, with guaranteed returns and capital protection.
How Fixed Deposit Interest is Calculated
Interest on fixed deposits is calculated using the compound interest formula. The compounding frequency (monthly, quarterly, half-yearly, or yearly) significantly impacts your returns. More frequent compounding typically results in better returns due to compound interest working in your favor.
Types of Fixed Deposits
- Regular Fixed Deposit: Standard term deposit with fixed interest rate and tenure
- Cumulative Deposit: Interest is compounded and paid at maturity for maximum returns
- Non-Cumulative Deposit: Interest paid monthly, quarterly, or yearly for regular income
- Flexi Fixed Deposit: Combination of savings and FD with withdrawal flexibility
- Tax-Saver Deposit: Lock-in period with potential tax benefits (varies by country)
Taxation on Fixed Deposit Interest
Interest earned on fixed deposits is generally taxable in most countries. The tax rate varies depending on your country of residence and income tax bracket. Some countries may have tax-free thresholds or special rates for certain types of deposits. Use our custom tax rate input to calculate your after-tax returns accurately.
Benefits of Using Our FD Calculator
- Instant calculation of maturity amount and interest earned
- Compare different interest rates, tenure, and compounding options
- Year-wise breakdown showing investment growth over time
- Custom tax rate calculation for accurate after-tax returns
- Support for multiple currencies and global applicability
- Compare cumulative vs. periodic payout options
- Mobile-friendly interface for calculations on the go
Frequently Asked Questions (FAQ)
What is a Fixed Deposit or Term Deposit?
A Fixed Deposit (also called Term Deposit or Certificate of Deposit) is a financial instrument where you deposit money with a bank for a fixed tenure at a predetermined interest rate. Your principal is guaranteed, and you earn fixed returns.
Which is better - cumulative or non-cumulative deposit?
Cumulative deposits offer higher returns as interest is compounded and reinvested. Non-cumulative deposits are better if you need regular income. The choice depends on your financial goals and income needs.
Can I withdraw my fixed deposit before maturity?
Most banks allow premature withdrawal but typically charge a penalty (usually 0.5% to 1%) and you'll receive a lower interest rate than the contracted rate. Terms vary by financial institution and country.
Are fixed deposits safe?
Fixed deposits are generally considered safe investments. In many countries, deposits are insured up to certain limits by government agencies (e.g., FDIC in USA, DICGC in India, FSCS in UK). Check with your local banking authority for specific coverage.
What is the typical interest rate for fixed deposits?
Interest rates vary by country, economic conditions, and bank. Rates typically range from 1% to 10% annually depending on the region and market conditions. Longer tenures and larger deposits often get better rates.
How is fixed deposit interest taxed?
Interest earned is typically taxable income in most countries. The tax rate depends on your personal income tax bracket and local tax laws. Some countries offer tax-free allowances or special rates for certain deposits. Consult a tax advisor for specific guidance.
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount. Compound interest is calculated on both principal and accumulated interest, resulting in higher returns. Most fixed deposits use compound interest with various compounding frequencies.
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