Fixed Deposit Calculator
FD Maturity Details
Invested Amount
₹1,00,000
Maturity Amount
₹1,07,000
Interest Earned
₹7,000
Annualized Return (CAGR)
7.00%
Yearly Interest Breakdown
| Year | Interest | Cumulative Interest | Balance |
|---|
Comparison with Simple Interest
| Type | Maturity Amount | Interest Earned |
|---|---|---|
| Compound Interest | ₹1,07,000 | ₹7,000 |
| Simple Interest | ₹1,07,000 | ₹7,000 |
| Difference | ₹0 | ₹0 |
About Fixed Deposits
A Fixed Deposit (FD) is a financial instrument that provides higher interest rates than regular savings accounts. It's a safe investment option where you deposit a lump sum for a fixed tenure at a predetermined interest rate.
How FD Interest Works
FD interest can be compounded quarterly, half-yearly, or annually. The more frequent the compounding, the higher the returns. Senior citizens typically get 0.5% higher interest rates.
Tax Implications
Interest earned on FDs is taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.
Premature Withdrawal
Breaking an FD before maturity usually attracts a penalty of 0.5-1% on the interest rate. The exact terms depend on the bank's policies.