Calculate maturity amount and interest earned on your Fixed Deposit — instantly and free.
| Year | Opening Balance | Interest Earned | Closing Balance |
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A Fixed Deposit (FD) is one of the oldest and most trusted wealth preservation tools. You deposit a lump sum with a bank or NBFC for a fixed tenure at a predetermined interest rate — regardless of market conditions. The principal is safe, the return is guaranteed, and maturity is predictable. That certainty is exactly why FDs remain a cornerstone of conservative portfolios worldwide.
Maturity = P × (1 + r/n)n×t, where P = principal, r = annual rate, n = compounding frequency per year, t = tenure in years. Monthly compounding (n=12) yields more than annual (n=1) for the same rate.
A quick way to estimate doubling time: divide 72 by your interest rate. At 7.2% p.a., your money doubles in exactly 10 years. At 6%, it takes 12 years.
A 7% p.a. FD compounded quarterly delivers an effective annual yield of 7.19%. Monthly compounding pushes it to 7.23%. Always compare effective rates — not headline rates — across banks.
Term Deposits in Australia & UK, Certificates of Deposit (CDs) in the US, Festgeld in Germany, and Fixed Deposits across India and Southeast Asia — same instrument, different names.
A savings account offers liquidity but typically returns 3–4% p.a. FDs lock your money but reward you with 6–8% (India) or 4–5% (US/UK). Liquid mutual funds offer similar returns to short-term FDs with daily redemption flexibility — but without capital protection. The right choice depends on your time horizon: if you won't need the money before maturity, an FD almost always wins on guaranteed yield.
In India, FD interest is added to your income and taxed at your income slab rate. Banks deduct 10% TDS if interest exceeds ₹40,000/year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable threshold. In the US, CD interest is taxed as ordinary income at federal and state rates. Always factor tax drag into your effective return — a 7% FD in the 30% tax bracket delivers an effective post-tax yield of just 4.9%.
FD Laddering is the most practical approach: instead of putting all your money into a single 5-year FD, split it into five equal FDs maturing in 1, 2, 3, 4, and 5 years. Each year, a tranche matures — giving you liquidity and the ability to reinvest at prevailing rates. This eliminates the risk of locking all capital at a low rate. For senior citizens, FDs also offer an additional 0.25–0.50% interest premium at most banks, making them especially efficient in retirement portfolios.
In India, DICGC insures FDs up to ₹5 lakh per bank per depositor. In the US, FDIC covers up to $250,000. Never exceed the insured limit at a single institution.
Most banks charge a 0.5–1% penalty for breaking an FD early. Some offer "sweep-in" FDs that let you withdraw in ₹1 lakh (or $1,000) slices without breaking the entire deposit.