FD Interest Calculator
Calculate the interest earned on your Fixed Deposit. Compare interest earnings across different banks and tenures to maximize your FD returns with our detailed interest calculator.
Understanding Fixed Deposits
Fixed Deposit (FD) is one of the safest investment options offered by banks and financial institutions. When you open an FD, you deposit a lump sum for a fixed tenure at a predetermined interest rate. The money is locked until maturity, and you earn interest that compounds quarterly in most cases.
FD Interest Calculation Formula
For quarterly compounding (most common in India):
A = P × (1 + r/400)^(4n)
Where: A = Maturity Amount, P = Principal, r = Annual Interest Rate (%), n = Number of Years
Example Calculations
| Principal | Rate | Tenure | Maturity | Interest |
|---|---|---|---|---|
| ₹50,000 | 6.5% | 6 months | ₹51,625 | ₹1,625 |
| ₹3,00,000 | 7.1% | 2 years | ₹3,45,123 | ₹45,123 |
Types of Fixed Deposits
- Regular FD: Standard deposits with flexible tenures from 7 days to 10 years
- Tax-Saving FD: 5-year lock-in with Section 80C benefits up to ₹1.5 lakh
- Senior Citizen FD: Higher interest rates (0.25-0.50% extra) for those 60+
- Cumulative FD: Interest compounded and paid at maturity
- Non-Cumulative FD: Interest paid monthly/quarterly/annually
FD vs Other Investments
While FDs offer guaranteed returns and capital safety, they may not beat inflation in the long term. For higher returns with some risk, explore SIP Calculator for mutual funds or PPF Calculator for tax-free returns with sovereign guarantee.
Frequently Asked Questions
Which bank gives highest FD interest rate?
Interest rates vary by bank. Small finance banks often offer 0.5-1% higher rates than large banks. Compare rates from SBI, HDFC, ICICI, and small finance banks like AU, Equitas for best returns.
What is the difference between simple and compound interest in FD?
Most FDs use quarterly compounding where interest is added to principal every quarter. Some banks offer monthly or annual compounding. Compound interest yields higher returns than simple interest.