Often we get several queries on our YouTube Channel regarding the Fixed Deposit interest rates, Fixed Deposit Calculator using Excel, interest rates in banks such as SBI, HDFC, Axis and many more popular banks, how to Save Income Tax using Fixed Deposits, is FD interest taxable, how to calculate FD interest Tax , Fixed deposit compounding frequency and many such similar queries.
FD Interest Calculator in Excel can be used to calculate interest in your Fixed Deposits. Fixed Deposit Interest Rates in SBI and other banks are updated periodically. Majority of Indians prefer Fixed Deposit (FD) or Time Deposit to prepare for an upcoming goal in future with negligible to no risk in their investment. FD is a way to prepare for a goal with an advantage of gaining some additional interest amount over a period of time ranging from 6 months to 10 years. Fixed Deposit helps you to save Income Tax under Section 80C, but the interest you earn after Fixed Deposit maturity is taxable. Fixed Deposit Calculator using Excel will help you know your interest amount for any deposit and tenure.
We will see only Cumulative Fixed Deposit in this article to keep it simple. Cumulative FD is an FD that reinvest interest amount every quarter to get you more interest, which means compounding is done quarterly. FD interest rate and tenure helps us to calculate the Fixed Deposit maturity amount that includes interest as well. Upon FD maturity, you’ll receive principal and interest money you received throughout the tenure.
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Watch below video to know how to use FD Interest Calculator in Excel.
- DOWNLOAD Fixed Deposit Interest Calculator in EXCEL
- FD Interest Calculator in Excel Video
- What is Fixed Deposit
- Fixed Deposit Interest Rates
- Fixed Deposit Calculation Example
- How to open Fixed Deposit
- Compounding in Fixed Deposit
- Fixed Deposit in Post Office
- Taxation in Fixed Deposits
- Some more videos
- Frequently Asked Questions (FAQs)
- What is the Fixed Deposit interest rate in SBI?
- What is the Fixed Deposit interest rate in HDFC?
- Can I open Fixed Deposit in Post Office?
- What is the FD interest rate in Post Office?
- How Fixed Deposit Calculator will help you?
- Can I open Fixed Deposit Online?
- Can you save Income Tax using Fixed Deposit?
- Is FD Interest Taxable?
FD Interest Calculator in Excel Video
What is Fixed Deposit
- Fixed Deposit (FD) is also called as Time Deposit, is a type of Deposit that helps you prepare for your future goals
- You deposit a principal amount decided by you and you receive quarterly interest which is paid to you after FD maturity in case of cumulative FD, or your receive regular payouts in case of non-cumulative FD
- Fixed deposits have higher interest rates compared to Savings or Recurring Deposits interest rates
- Higher interest rates makes FD more attractive
- Though the interest rates offered by FD is not more than some other government backed saving schemes such as Public Provident Fund, Sukanya Samriddhi Yojana and Senior Citizens Saving Scheme and also non government scheme such as Mutual Funds
- Irrespective of interest rates, the goal you are trying to achieve should be considered while opening of a Fixed Deposit
- If you have a lump sum amount that you need after 1 year, than Fixed deposit is the best place to keep your had earned money with some additional interests amount
We will see how Fixed Deposit interest is calculated below.
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Fixed Deposit Interest Rates
- Interest rates on Fixed Deposits ranges between 3% to 7%
- Interest rates depends on the tenure or the period of maturity
- SBI Fixed Deposit Rates are currently between 2.9% to 7% per year
- HDFC Fixed Deposit Rates are currently between 2.5% to 7% per year
- Post Office Fixed Deposit Rates are currently between 5.5% to 7% per year
- Important: Fixed Deposit Rates are different for non-senior and senior citizens
Note: Actual FD interest rates will be applicable during the time of opening Fixed Deposit account.
Fixed Deposit Calculation Example
- Fixed deposit interest are calculated every month and are compounded quarterly in case of cumulative Fixed Deposit
- You can easily calculate interest on Fixed Deposit using the excel calculator at the bottom of this article
Let’s take FD interest calculation example:
Principal Amount = Rs. 1,00,000
Interest Rate = 6% pa
After entering above data in excel, we get below figures:
So, as seen above, we get a total interest of Rs. 6,136
You can easily use this excel file to calculate interest on your Fixed Deposit.
How to open Fixed Deposit
There are 2 ways you can open Fixed Deposit: Offline or Online.
Offline FD is one of the popular methods in case you don’t have access to Internet Banking. In this case when you open FD offline, you’ll be provided with a receipt as a proof that you have opened FD. This receipt is supposed to be kept safely with you as it is required during the time of FD maturity (little efforts from your end for this paperwork!).
You might be asked to fill a FD form along with your ID and address proofs that are supposed to be submitted to open a Fixed Deposit.
On other hand, if you have access to internet banking, you can easily open Fixed Deposit online with the option of Fixed Deposit Request provided by popular banks such as SBI, HDFC, ICICI, Axis bank, etc. This method is very simple and easy as it can be done within few minutes. There is also no need to retain a hard copy of FD receipt, as the record is maintained in your internet banking account.
Note: It is very important that you mention the Nominee while you open a Fixed Deposit.A nominee is a person who receives the FD maturity amount in case of account holder’s death before FD maturity.
Compounding in Fixed Deposit
- Mostly, Compounding is done quarterly in Fixed Deposit
- Some banks also provide monthly or half-yearly compounding based on their rules and regulations
- Compounding is the process of getting more interest on already earned interest amount
- It is the 8th wonder of world and those who understands compounding, earns it, and those who don’t understand compounding, pays it
ALSO READ: Mutual Fund Returns Calculator [EXCEL VIDEO]
Fixed Deposit in Post Office
- You can also open Fixed Deposit in Post Office in case Post Office is near your place
- Also, FD interest rates are slightly higher in Post Office compared to Banks
- But the limitation is, you can only open offline Fixed Deposit in Post Office due to unavailability of Internet services of Post Offices as of now
- The interest calculation procedure is same when you open Fixed Deposit in Post Office
Taxation in Fixed Deposits
- One major advantage of opening Fixed Deposit is FD helps you in saving Income Tax
- 5 year Fixed Deposit helps you to Save Income Tax under Section 80C
- You can easily know How Income Tax is Calculated for FY 2022-23 using excel calculator I have provided
- The interest amount you get in Fixed Deposit in Taxable. So the interest amount you earn during the Financial Year (April to March)
You can easily download fixed deposit calculator in excel using link provided at the start of this article and calculate the quarterly interest on your fixed deposits.
Fixed deposits is one of the attractive schemes that will help you to park your accumulated corpus and get interest amount regularly. It is also very useful to keep your emergency fund.
Some more Reading
- Rs. 1000 PPF Interest Calculation for 15 years
- PF Withdrawal Online Process – All Steps
- PPF Calculator in Excel [DOWNLOAD]
- How to open NPS Account Online
Some more videos
Frequently Asked Questions (FAQs)
What is the Fixed Deposit interest rate in SBI?
SBI Fixed Deposit Interest Rates are currently between 2.9% to 7% per year. It also depends on the tenure you select while opening Fixed Deposit in SBI.
What is the Fixed Deposit interest rate in HDFC?
HDFC Fixed Deposit Interest Rates are currently between 2.5% to 7% per year. It also depends on the tenure you select while opening Fixed Deposit in HDFC.
Can I open Fixed Deposit in Post Office?
Yes, you can open Fixed Deposit in Post Office
What is the FD interest rate in Post Office?
Post Office Fixed Deposit Interest Rates are currently between 6.6% to 7% per year. It also depends on the tenure you select while opening Fixed Deposit in Post Office.
How Fixed Deposit Calculator will help you?
Fixed Deposit Calculator will help you to know the Fixed Deposit maturity amount. In this way, you can choose between the popular banks and post office to open Fixed deposit based on the maximum maturity amount you’ll receive
Can I open Fixed Deposit Online?
Yes, you can open Fixed Deposit Online and many banks have this option of opening Fixed deposit from you ow house through Internet Banking
Can you save Income Tax using Fixed Deposit?
Yes you can Save Income Tax by opening 5 year tax saving Fixed Deposit. This helps you to save Income Tax under Section 80C for which the maximum limit is Rs. 1.5 Lacs in FY 2021-22
Is FD Interest Taxable?
Yes FD interest you earn is taxable in the Financial year when Fixed Deposit is matured and you receive the maturity amount. Only the interest amount is taxable and not the principal amount.
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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 2022-23 and previous FY 2021-22
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