Calculate exact maturity value & guaranteed interest earned with quarterly compounding.
Adjust numerical values below or drag sliders to recalculate trajectory in real time.
The upfront amount deposited in the bank account.
Annual interest rate offered by the bank or financial institution.
Duration for which the funds remain locked in the deposit.
Interactive visual breakdown of principal invested vs. wealth gain / interest over time.
Comprehensive guide covering foundational concepts, regulatory rules, and advanced strategies.
A Fixed Deposit is one of the safest financial instruments offered by banks and Non-Banking Financial Companies (NBFCs). You deposit a lump sum for a fixed duration at a guaranteed rate of return that is immune to stock market volatility. Up to ₹5 Lakhs of deposit per bank per depositor is insured under DICGC (Deposit Insurance and Credit Guarantee Corporation).
While nominal FD rates look straightforward (e.g., 7.5% p.a.), the effective annual yield is higher due to quarterly compounding ($n=4$). For instance, a 7.5% nominal rate yields an effective annual return of 7.71%. Note that FD interest is fully taxable at your applicable income tax slab rate. If your annual interest exceeds ₹40,000 (₹50,000 for senior citizens), banks deduct 10% TDS under Section 194A unless Form 15G/15H is submitted.