Fixed Deposit Calculator
Fixed Deposit Calculator with Compounding & Yearly Breakdown.
Yearly Breakup
Fixed Deposit (FD)
A Fixed Deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. FD is one of the safest investment options.
How FD Interest is Calculated?
The maturity amount is calculated using the compound interest formula:
A = P(1 + r/n)nt - P = Principal amount
- r = Annual interest rate (in decimal)
- n = Number of compounding periods per year
- t = Time in years
How to Use This Fixed Deposit Calculator
This calculator helps you estimate the future value of your Fixed Deposit (FD) based on the interest rate, time period, and compounding frequency. Follow the steps below to use the calculator:
- Principal Amount ($): Enter the amount you plan to invest in the fixed deposit.
- Annual Interest Rate (%): Input the yearly interest rate offered by the bank or financial institution.
- Time Period (Years): Enter the number of years you want to keep the money invested (maximum 40 years).
- Compounding Frequency: Choose how often the interest is compounded:
- Annually – Once per year
- Semi-Annually – Twice per year
- Quarterly – Four times per year
- Monthly – Twelve times per year
- Click "Calculate": The calculator will display:
- Your principal amount
- Total interest earned
- Maturity value (principal + interest)
- A pie chart showing the breakdown
- A year-by-year breakdown of how your investment grows
- Download Report (Optional): Click the "Download PDF Report" button to save or print your results.
Tip: Use different compounding frequencies and time periods to compare how much more you could earn with longer or more frequent compounding.
Frequently Asked Questions (FAQs)
A Fixed Deposit is an investment instrument offered by banks and financial institutions where you deposit a lump sum for a fixed tenure at a predetermined interest rate. For example, if you invest $10,000 in a 5-year FD at 6% annual interest, you'll earn approximately $3,382 in interest.
Unlike savings accounts with variable interest rates (typically 0.5%-3%), FDs offer higher fixed rates (3%-8% globally) in exchange for locking in your money. Savings accounts allow unlimited withdrawals while FDs have penalties for early withdrawal.
- USA: Taxable as ordinary income (1099-INT form)
- India: Interest taxed at income tax slab rates, with TDS if interest exceeds ₹40,000 annually
- UK: Taxable as savings income but with personal savings allowance
- Singapore: No tax on FD interest for individuals
- Simple Interest: $10,000 at 5% for 3 years = $10,000 × 0.05 × 3 = $1,500 interest
- Compound Interest (annual): Same FD = $10,000 × (1.05)^3 - $10,000 = $1,576.25
- Annual: $10,600
- Semi-annual: $10,609
- Quarterly: $10,613
- Monthly: $10,616
- Daily: $10,618
- Bank solvency (check deposit insurance)
- Inflation risk (real returns may turn negative)
- Currency risk for foreign currency FDs
Available in some countries like India with lock-in periods (5 years in India) and tax deductions under section 80C. Interest remains taxable.
Instead of fixed rates, these track benchmark rates like LIBOR or central bank rates plus a spread. Example: LIBOR + 1.5%.
Allow deposits in USD, EUR, GBP etc., often offering higher rates but with exchange rate risk. Example: A 3% USD FD could lose value if local currency appreciates.
Calculate the effective return after penalty (typically 0.5%-1% reduction). Example: Breaking a 6% FD after 1 year with 1% penalty gives ~5% return, which may still beat savings accounts.
- Laddering: Split into multiple FDs with different tenures
- Cumulative vs. Payout: Reinvest interest for compounding
- Senior citizen rates: Often 0.25%-0.5% higher
- Special tenure: Some banks offer higher rates for 390 days etc.
Example: 6% FD with 4% inflation gives 2% real return. In high-inflation countries, FDs may offer negative real returns.
The bank can terminate before maturity (common in USA/Europe), usually offering higher rates but with reinvestment risk.
- "Either or survivor" (either can operate)
- "Former or survivor" (specific order)
- "Jointly" (all must sign)
Most banks auto-renew at prevailing rates unless instructed otherwise. Example: A matured FD might renew at current 5% instead of original 6%.
FD tenures range from 7 days to 10 years, depending on the bank and country. For example, in the UK, 1-5 year terms are common, while in India and Australia, 1–10 years are typical options.