📘 How to Use the Fixed Deposit Calculator

Step 1: Enter Deposit Amount

Input the amount you plan to deposit.
Example: ₹50,000

Step 2: Enter Interest Rate

Provide the annual interest rate offered by the bank.
Example: 12%

Step 3: Enter Tenure

Fill in the deposit duration and select whether it's in months or years using the toggle.
Example: 5 Months or 1 Year

Step 4: Additional Charges (Optional)

Enter any additional charges applicable.
Example: ₹500

Step 5: Select Interest Payout Frequency

Choose one from Half-Yearly, Quarterly, or Yearly interest payout options.

Step 6: Click “Calculate”

Press the Calculate button to see your estimated returns.

📊 What Results You’ll See

Interest Amount: Interest earned on your deposit.
Estimated Returns: Total amount you will receive at maturity.
Total Interest: Sum of interest accrued over the deposit tenure.

Note: Calculations are approximate and actual returns may vary depending on bank policies and compounding frequency.

Fixed Deposit: A Safe and Reliable Investment Option

June 4, 2025 | IST

A Fixed Deposit (FD) is a popular investment product offered by banks and financial institutions where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. It is known for its safety, guaranteed returns, and disciplined saving method.

Key Features of Fixed Deposit

Fixed tenure ranging from 7 days to 10 years
Guaranteed interest rates higher than regular savings accounts
Option for cumulative or non-cumulative interest payout
Premature withdrawal allowed with applicable penalties
Loan facility available against FD in many banks

Types of Fixed Deposits

Regular FD: Deposited for a fixed tenure with fixed interest rates.
Cumulative FD: Interest is compounded and paid at maturity.
Tax-saving FD: Offers tax benefits under Section 80C with a lock-in period of 5 years.
Senior Citizen FD: Higher interest rates for senior citizens.

Benefits of Investing in Fixed Deposit

- Guaranteed and fixed returns regardless of market fluctuations.
- Safe investment option with low risk.
- Flexible tenure options to suit your financial goals.
- Regular interest payout options for steady income.
- Loan against FD helps in emergency fund requirements.
- Helps inculcate a disciplined saving habit.

Things to Consider Before Investing

- Compare interest rates offered by different banks.
- Understand the compounding frequency and interest payout options.
- Check the premature withdrawal penalties.
- Verify the tenure and liquidity needs.
- Consider tax implications on interest earned.
- For tax-saving FD, check lock-in period and limits.

How to Open a Fixed Deposit?

Opening an FD is simple and can be done online or offline. You need to provide basic KYC documents, choose the deposit amount, tenure, and payout option, and complete the payment process.

Conclusion

Fixed Deposits are an excellent investment choice for risk-averse investors seeking stable and guaranteed returns. By choosing the right tenure and bank, you can maximize your earnings while ensuring the safety of your principal amount.

Consider adding Fixed Deposits to your investment portfolio to build a secure financial future.