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Investment Calculator

Fixed Deposit Calculator

Calculate FD maturity amount with compound interest

Fixed Deposit Details

₹1.00L
₹1.0KLogarithmic Scale₹1.00Cr

💡 Tip: Click value to edit directly. Supports shorthand (5L, 2.5Cr) or exact numbers (725000)

7.5%
1%15%
3 months5 years10 years

Maturity Amount

₹1.45 L

Principal

₹1.00 L

Interest Earned

₹44.99 K

Effective Annual Rate

7.71%

Investment Period

5 years

Investment Breakdown

Principal
Interest Earned
69%31%

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Year-wise FD Growth

Year-wise Growth Projection

Principal
Growth
₹1.08 L
+7.7%
₹1.00 L
Year 1
₹1.16 L
+16.0%
+₹16 K
₹1.00 L
Year 2
₹1.25 L
+25.0%
+₹25 K
₹1.00 L
Year 3
₹1.35 L
+34.6%
+₹35 K
₹1.00 L
Year 4
₹1.45 L
+45.0%
+₹45 K
₹1.00 L
Year 5

Understanding Fixed Deposits

Fixed Deposits are one of the safest investment options offering guaranteed returns with flexible tenure options.

How FDs Work

  • • Deposit money for a fixed period
  • • Earn guaranteed interest rate
  • • Interest compounds based on frequency
  • • Receive maturity amount at end of term
  • • Early withdrawal may have penalties

Benefits

  • Capital Protection: Principal amount is guaranteed
  • Fixed Returns: Know exact returns upfront
  • Flexible Tenure: 7 days to 10 years options
  • Tax Benefits: 5-year tax-saving FDs available

Compound Interest Formula

Formula:
A = P(1 + r/n)^(nt)
A = Maturity Amount
P = Principal Amount
r = Annual Interest Rate
n = Compounding Frequency
t = Time Period (years)

Impact of Compounding Frequency

Annually

Once per year

₹1.44 L
Interest: ₹44 K

Half-Yearly

Twice per year

₹1.45 L
Interest: ₹45 K

Quarterly

Four times per year

₹1.45 L
Interest: ₹45 K

Monthly

Twelve times per year

₹1.45 L
Interest: ₹45 K

Higher compounding frequency leads to higher returns due to the compounding effect.

Frequently Asked Questions

What's the difference between simple and compound interest FDs?

Simple interest FDs pay interest only on the principal. Compound interest FDs add earned interest back to principal, earning interest on interest. Most FDs use compound interest, resulting in higher returns.

How does compounding frequency affect returns?

More frequent compounding leads to higher returns. Monthly compounding gives better returns than quarterly, which is better than annual. However, the difference decreases as frequency increases beyond monthly.

Are FD returns taxable?

Yes, FD interest is taxable as per your income tax slab. Banks deduct TDS if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Tax-saving FDs have lock-in of 5 years but offer tax deduction under Section 80C.