FD Calculator

What is Fixed Deposit (FD)?

A Fixed Deposit (FD) is a popular financial instrument offered by banks and NBFCs. It provides a higher interest rate than a regular savings account, making it ideal for surplus funds. Any bank customer can open a Fixed Deposit account according to their needs, and it is not mandatory to have a savings account for the same.

Fixed Deposits offer flexible investment tenures ranging from 7 days to 10 years. They are considered safer compared to mutual funds, equities, or debt funds. Your FD investment is also insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) and offers certain income tax and wealth tax benefits.

Features of Fixed Deposit

Understanding the features of Fixed Deposits helps investors make informed financial decisions. Here are the key features of FDs in India:

• Fixed Deposits offer higher interest rates than savings accounts, making them suitable for surplus funds.
• As the name implies, FDs come with a fixed tenure and rate of return. You cannot add or withdraw funds during the term.
• You can start an FD anytime — there’s no specific time window to open one.
• Additional investments require opening a new FD account; deposits cannot be added to an existing one.
• Renewal is hassle-free — after maturity, you can renew the amount for a chosen tenure.
• Longer FD tenure earns a higher rate of interest.
• Interest earned is subject to TDS as per the Income Tax Act, 1961.

Benefits of Fixed Deposits

Fixed Deposits are among the safest investment options that provide assured returns and financial stability.

Key benefits include:

• Safe Investment: Offers security and stability against market fluctuations.
• Principal Protection: Covered under DICGC, ensuring up to ₹1,00,000 per depositor per bank.
• Flexible Payouts: Choose between cumulative (paid on maturity) or non-cumulative (paid periodically) schemes.
• Assured Returns: Returns remain constant regardless of market conditions.
• Higher Interest Rates: Generally higher than savings accounts, ranging between 7%–10% in some cases.
• Premature Withdrawal: Allowed with a nominal penalty deduction.
• Flexible Tenure: Choose tenure from 7 days up to 10 years.
• Encourages Saving Habit: Lock-in helps individuals maintain consistent saving habits.
• Senior Citizen Benefit: Extra interest rates (usually 0.5% higher) for senior citizens.
• Loan Against FD: Get secured loans up to 90% of your FD amount at lower interest rates.

Types of Fixed Deposits

Fixed Deposits come in multiple types to suit diverse investor goals. Each type offers different flexibility, returns, and payout methods.

• Regular Fixed Deposit: Standard FD offering fixed interest rate for a specific tenure. Suitable for salaried and self-employed individuals.
• Tax-Saving Fixed Deposit: Offers tax exemption under Section 80C for deposits locked for 5 years. Premature withdrawal is not permitted.
• Senior Citizen Fixed Deposit: Provides higher interest rates (usually +0.5%) for individuals aged 60 years and above.
• Flexi Fixed Deposit: Links savings or current account with FD. Excess balance automatically converts into FD and earns higher interest.
• Cumulative Fixed Deposit: Interest compounded quarterly/annually and paid at maturity — ideal for long-term savers.
• Non-Cumulative Fixed Deposit: Interest paid monthly, quarterly, or annually. Suited for those seeking regular income.
• NRI Fixed Deposit: Includes NRE, NRO, and FCNR deposits for Non-Resident Indians to invest earnings in India.

Online FD Calculator

An FD Calculator is a quick online tool that helps investors estimate the maturity value and total interest earned on their fixed deposit. It removes the need for manual calculations and helps compare FDs across banks.

Formula for FD Maturity Value (Quarterly Compounding):

M = P × (1 + r/400)^{4 × t}

• M: Maturity amount
• P: Principal amount invested
• r: Annual rate of interest
• t: Tenure in years

Just enter your deposit amount, interest rate, and tenure to get instant results. This helps plan investments for specific financial goals such as education, marriage, or retirement.

Fixed Deposit Interest Rates 2025

Below are the prevailing FD interest rates in India (2025) for deposits up to ₹2 crore. Rates may vary depending on tenure and depositor type (regular / senior citizen).

*Rates are indicative and may change anytime as per RBI guidelines and individual bank policies.

Eligibility for Fixed Deposit

• Any Indian resident (individual or joint) can open a Fixed Deposit account.
• Minors can open FDs under the guardianship of parents or legal guardians.
• Hindu Undivided Families (HUFs), partnership firms, and companies are eligible.
• Non-Resident Indians (NRIs) can open FDs under NRE, NRO, or FCNR accounts.
• Clubs, associations, and trusts can open FDs as per bank policy.

Documents Required for Fixed Deposit Account

• Filled FD account opening form (available online or at the branch).
• Passport-size photographs of the applicant(s).
• Valid identity proof (Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License).
• Address proof (Utility bill, Aadhaar, Passport, or Rental Agreement).
• PAN Card (mandatory for tax reporting and TDS purposes).
• For NRI accounts: Passport, Visa, and proof of overseas address.

After verification, the Fixed Deposit account is activated, and the depositor receives the FD certificate or receipt with details of the amount, interest rate, and maturity date.