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Fixed deposit calculator
What a fixed deposit matures to, compounded quarterly.
₹
%
years
Matures to
₹1,41,478
about ₹1.41 lakh
71% of that is money you put in.
- You deposit
- ₹1,00,000
- Interest earned
- ₹41,478
- Maturity amount
- ₹1,41,478
This is arithmetic, not a forecast. The result applies numbers you chose. Real returns vary year to year, can be negative, and are never guaranteed. Unless stated otherwise the figure is before inflation and before tax.
How this calculation works
Fixed deposits in India are usually compounded quarterly, which is what this calculator does. Interest is added to the balance four times a year and then earns interest itself.
What it leaves out
Tax. FD interest is added to your income and taxed at your slab rate. For someone in the 30% bracket a 7% deposit returns under 5% after tax, which against 6% inflation is a loss of buying power.
Understanding the thing itself matters more than the number: Tax on investments.
Common questions
Is an FD safe?
It is safe from price movement, and deposits are insured up to a limit per bank per depositor. It is not safe from inflation, which is the risk that actually applies over long periods.
How is FD interest taxed?
It is added to your total income and taxed at your slab rate, with TDS deducted by the bank once interest crosses the applicable threshold in a year.
Should I keep my emergency fund in an FD?
Part of it can sit in a short term deposit, provided you accept a penalty for breaking it early. Keep about a month of expenses in a savings account for instant access, because an emergency fund that you cannot reach today is not doing its job.