This FD Calculator helps you to know how much interest you can get in Fixed deposits opened in bank or post office. FD interest is compounded on quarterly basis.
You can open Fixed deposits for tenure between 7 days to 10 years to park for fixed interest on pre defined interest rate.
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ALSO READ: Latest Interest Rates in Post Office
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- What is FD?
- How FD Calculator works?
- How to Calculate FD Interest?
- Latest FD Interest Rates in Post Office
- How much you will get on Rs. 1 Lakh FD?
- In How many years FD will double?
- Which Bank FD is Best?
- Does FD give monthly Interest?
- Income Tax Saving on FD
- More Calculators
What is FD?
FD full for in Fixed Deposit, also known as Term Deposit. FD can be booked in any nationalized or private banks or in post office in India. The main goal of booking FD should be to use the invested amount in some future buying.
For example, you have enough amount to buy a new smartphone with a budget of Rs. 10,000, but you can wait for the next 1 year to check if you get a good deal within your budget with upcoming new smartphones. So you can book an FD for 1 year, post which, you can use the fund to buy a new smartphone of your choice. And this is how, you should link your FD investment to your goals.
You get additional interest amount as bonus, higher than savings account in Fixed Deposits.
Watch how FD interest is calculated in excel
You can download the Fixed Deposit Excel Calculator from here.
How FD Calculator works?
FD Calculator helps you to know how much interest you can earn if you book a FD with specific amount, with interest rate and tenure provided to the calculator. This will help you plan your investments for goals accordingly.
There are 2 types of FD:
- Cumulative Fixed Deposits: A type of FD that helps you accumulate interest amounts that you gain every quarter. This interest amount helps you earn more interest over long run which is known as Compounding. Compounding in FD usually happens on quarterly basis, which means, your interest calculated every month will be added to your balance every quarter. This increase in balance will help you earn more interest in upcoming quarters and that is why cumulative Fixed Deposits must be preferred.
- Non Cumulative Fixed Deposits: In this type of FD you get regular payouts may be quarterly or half yearly. This payouts are usually the interest amounts you gain over a quarter of half year. Instead of adding this interest to your balance amount, it is paid out to you which you can treat as a bonuses on regular intervals.
Cumulative Fixed Deposits earn higher interest amounts compared to non cumulative fixed deposits.
The above calculator helps you calculate interest of cumulative fixed deposits.
ALSO TRY: SIP Returns Calculator
How to Calculate FD Interest?
Let us take an example of how to calculate Fixed Deposit interest.
For example, if you deposit Rs. 5000 in cumulative Fixed Deposit with 4.5% annual interest rate for 1 year, below are the steps to calculate FD interest:
- Calculate monthly interest rate from annual interest rate – 4.5 / 12 = 0.375%. This is the monthly interest rate in our example
- Now use monthly interest rate to calculate monthly interest you’ll get using formula – monthly interest rate * amount / 100 = 0.375% * Rs. 5000 / 100 = Rs. 18.75
- Since we are considering quarterly compounding, we have to calculate 3 months interest by multiplying one month interest with 3 = Rs. 18.75 * 3 = Rs. 56.25 (3 months interest on Rs. 5000)
- Now this interest is added to you balance amount of Rs. 5000, which now becomes Rs. 5056.25
- Repeat steps 2-4 using updated balance amounts.
Below is the screenshot showing total interest earned in our example:
As seen above, we get total interest of approx. Rs. 229 and a total maturity amount of approx. Rs. 5229 based on above example.
Watch above video to know how quarterly compounding is done in FD and how total interest is calculated.
After FD maturity, you have 3 options:
- Take Maturity (total) amount in your Savings account
- Renew FD (Principal amount only)
- Renew FD (Principal + Interest amounts)
So it depends on you after FD maturity whether you want to renew the amounts for some more time.
Latest FD Interest Rates in Post Office
Below are the latest FD interest rates in post office for quarter October to December 2024:
| Tenure | Interest Rate | Minimum Deposit | Maximum Deposit |
|---|---|---|---|
| 1 Year | 6.9% | Rs. 1000 | No Limit |
| 2 Years | 7.0% | Rs. 1000 | No Limit |
| 3 Years | 7.1% | Rs. 1000 | No Limit |
| 5 Years | 7.5% | Rs. 1000 | No Limit |
How much you will get on Rs. 1 Lakh FD?
Based on the calculator, for FD of amount = Rs. 1 Lakh, interest rate = 4.5% and tenure = 1 Year, you’ll get total interest = Rs. 4577 and maturity amount = Rs. 1,04,577
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In How many years FD will double?
It depends on interest rate you are getting on FD. Senior citizens and bank staff gets higher interest rates on FD compared to others. Considering quarterly compounding, and interest rate of 5%, your investment amount will double in approx. in 14 years. So after 14 years, your FD of Rs. 1 Lakh with annual interest rate of 5%, you’ll get approx. 2 Lakh as maturity amount.
Below is the table showing in how many years FD will double based on interest rates:
| Annual Interest Rate % | Years it will take for double amount |
|---|---|
| 3% | 23.5 Years |
| 3.5% | 20 Years |
| 4% | 17.5 Years |
| 4.5% | 15.5 Years |
| 5% | 14 Years |
| 5.5% | 12.6 Years |
| 6% | 11.7 Years |
| 6.5% | 10.8 Years |
| 7% | 10 Years |
Which Bank FD is Best?
You can book FD in any bank including SBI, ICICI, Axis, etc. Above calculator gives approx. interest and maturity amounts for FDs booked in SBI as well. So above FD calculator can be treated as FD calculator for SBI.
Apart from banks, you can also check out FD interest rates in Post Office as well. Some Post offices provide higher interest rates compared to banks so they are worth checking.
Does FD give monthly Interest?
Yes, monthly interest is calculated in FD and is compounded on quarterly basis. As explained above, monthly interest are calculated thrice before adding this sub-interest amount in the balance, on which upcoming months interest will be calculated.
Income Tax Saving on FD
You can save income tax on FD under Section 80C. But the tenure for saving income tax in FD must be 5 years. Other tenures FD cannot help you save income tax. Maximum of Rs. 1.5 Lacs can be claimed as deduction under Section 80C while saving income tax.
You can read about more tax saving options here.
More Calculators
Get EARLY Retirement!
Use Retirement Excel Calculator that will help you to Retire Early.
Click below button to download Retirement Calculator in Excel:
Watch how Retirement Calculator in Excel Works
Income Tax Calculator App – FinCalC
For Income Tax Calculation on your mobile device, you can Download my Android App “FinCalC” which I have developed for you to make your income tax calculation easy.
What you can do with this mobile App?
- Calculate Income Tax for new FY 2024-25 and previous FY 2023-24
- Enter estimated Investments to check income tax with Old and New Tax Regime
- Save income tax details and track regularly
- Know how much to invest more to save income tax
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