FD Calculator

Calculate maturity amount for Fixed Deposits

Frequently Asked Questions

What is a Fixed Deposit and how does it work?

A Fixed Deposit (FD) is a savings instrument where you deposit a lump sum for a fixed tenure at a predetermined interest rate. The interest compounds quarterly and you receive the maturity amount at the end. FDs offer guaranteed returns and are low-risk investments.

What are the interest rates for FDs in 2024?

FD rates vary by bank and tenure, typically ranging from 5.5% to 7.5% for regular deposits. Senior citizens usually get 0.25-0.50% extra. Small finance banks and corporate FDs may offer higher rates (7-9%) but carry slightly higher risk.

Is FD interest taxable?

Yes, FD interest is fully taxable as 'Income from Other Sources.' Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for seniors). Submit Form 15G/15H to avoid TDS if your total income is below taxable limits.

Can I break my FD before maturity?

Yes, premature withdrawal is allowed but typically incurs a penalty of 0.5-1% on the applicable interest rate. Some banks offer sweep-in FDs or flexi-deposits that allow partial withdrawals without breaking the entire FD.

What is the difference between cumulative and non-cumulative FD?

Cumulative FDs reinvest interest and pay the total at maturity—better for wealth building due to compounding. Non-cumulative FDs pay interest monthly/quarterly—suitable for regular income needs like retirees. Cumulative FDs yield higher total returns.

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