Slide the bars to adjust the numbers
Select Lumpsum Deposit Amount
Select number of months
Select interest rate
How to use this FD Calculator?
- Use the slider for selecting Lumpsum Deposit Amount
- Select the tenure in Months using slider
- Move the slider and select the Interest Rate
- Recalculate your FD anytime by changing the input sliders
- FD Amount will be calculated instantaneously when you move the sliders.
How is FD interest calculated?
Interest on FD is compounded quarterly, in most banks. The formula for this is:
A = P * (1+ r/n) ^ n*t , where
I = A – P
A = Maturity value
P = Principal amount
r = rate of interest
t = Number of years
n = Compounded interest frequency
I = Interest earned amount
Benefits of FD
- FD can be used as collateral for taking loans. You can take up to 80-90% loans on your FD amount
- The depositor can choose to transfer the amount at the time of maturity for a further Fixed Deposit.
- The money can be deposited only once. Once deposited, withdrawal of money from the account will accrue a penalty.
- FD schemes are good investment tools for those who have surplus funds and want to earn money from it.
Tax Benefits on FD
Similar to other personal tax-saving and investment instruments, Fixed Deposits schemes also attract taxes. A TDS of 10% is deducted on the returns accrued from an FD if the total interest exceeds Rs. 10,000 in a single financial year.
Let’s compare this to the SIP scheme and you can see that SIPs are more beneficial for the long term. Since long-term gains from equity are tax-free, any SIP which invests in ELSS (Equity Linked Mutual Funds) is also tax-free after one year.