Fixed Deposit Interest Calculator

Grow Your Savings Safely with Fixed Deposits

Fixed Deposits (FDs) are a secure, low-risk investment option offering guaranteed returns, making them ideal for conservative investors or those saving for specific goals. Our Fixed Deposit Interest Calculator helps you project the maturity amount and interest earned based on your principal amount, interest rate, tenure, and compounding frequency. Whether you’re parking savings for a future purchase or building a safety net, this tool provides clarity on how your money will grow.

Start by entering your principal amount—the sum you plan to invest, such as ₹5 lakh for a car or ₹10 lakh for an emergency fund. Next, input the annual interest rate, typically 5-8% for FDs, depending on the bank or tenure. Specify the tenure in years, from 1 to 20 years, to match your goal’s timeline. Finally, choose the compounding frequency—yearly, half-yearly, quarterly, or monthly—as this affects your returns. The calculator computes the maturity amount and interest earned, showing how your FD will grow over time.

This calculator showcases the power of compounding in FDs. For example, a ₹5 lakh FD at 6.5% interest, compounded quarterly over 5 years, grows to ₹6.86 lakh, earning ₹1.86 lakh in interest. Switch to monthly compounding, and the maturity amount increases slightly to ₹6.87 lakh. Extend the tenure to 10 years, and the same FD yields ₹9.45 lakh, with ₹4.45 lakh interest. Experiment with different amounts, rates, or tenures to align with your goals—perhaps a ₹2 lakh FD for a vacation or ₹15 lakh for a down payment.

FDs offer safety but require strategic planning. Compare banks for higher rates, as even 0.25% more can add thousands over long tenures. Senior citizens often get 0.5% higher rates, boosting returns. Consider ladder FDs—splitting investments across multiple tenures—to balance liquidity and growth. Be mindful of tax on interest (TDS applies if interest exceeds ₹40,000 annually) and premature withdrawal penalties. This calculator helps you test scenarios, but always check FD terms, as some offer fixed rates while others vary.

FDs are about stability and dreams—funding a child’s education, a dream home, or a stress-free retirement. This calculator transforms those aspirations into achievable plans. As of April 2025, with stable FD rates and rising costs, now is a great time to invest. Input your details, tweak the variables, and watch your savings grow securely. Let this tool guide you toward financial peace, where every rupee invested today builds a stronger tomorrow.