Bank Fixed Deposits remain one of India’s primary fixed-income vehicles for capital preservation. This calculator computes maturity value, interest earned, and payouts under quarterly compounding schedules.
💰 Fixed Deposit (FD) Calculator
Calculate the maturity value and interest returns on your bank Fixed Deposits.
Fixed Deposit (FD) Calculator: Cumulative & Non-Cumulative Term Deposit
📋 What, Why, and Who Should Use It?
🔍 What is this Calculator?
A term deposit calculation engine that computes total interest and maturity proceeds for bank and post office fixed deposits.
⚡ Why is it Useful?
Enables investors to compare cumulative reinvestment options against non-cumulative regular interest payouts for income planning.
👥 Who Should Use It?
Conservative investors, senior citizens seeking regular interest cash flows, and short-term capital preservers.
⚙️ How It Works & Calculation Formula
Indian commercial banks compound fixed deposit interest on a quarterly basis (4 times per year). For cumulative deposits, interest is reinvested quarterly. For non-cumulative deposits, simple quarterly or discounted monthly interest is paid out.
💡 Assumptions & Real-World Example
Assumes standard quarterly compounding frequency common to Indian scheduled commercial banks. Does not deduct TDS, which is dependent on depositor tax brackets.
📌 FAQs
1. What is the difference between cumulative and non-cumulative FD? ▼
In cumulative FDs, interest is reinvested quarterly and paid together with principal at maturity. In non-cumulative FDs, interest is paid out periodically (monthly, quarterly, or annually) to provide regular income.
2. How is fixed deposit interest taxed in India? ▼
FD interest is fully taxable under ‘Income from Other Sources’ at your applicable income tax slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 for regular individuals or ₹50,000 for senior citizens.
3. What are Form 15G and Form 15H? ▼
Form 15G (for individuals below 60) and Form 15H (for senior citizens) are self-declarations submitted to banks requesting zero TDS deduction if total taxable income for the year is below the basic exemption limit.
4. What is the safety insurance on bank fixed deposits? ▼
Under DICGC (a wholly-owned subsidiary of the RBI), bank deposits in commercial and cooperative banks are insured up to ₹5,00,000 per depositor per bank, covering both principal and interest.
5. What is a 5-Year Tax-Saving FD? ▼
A Tax-Saving FD carries a mandatory 5-year lock-in period and qualifies for deduction under Section 80C up to ₹1.5 Lakhs (Old Tax Regime). Premature withdrawals and loans against it are prohibited.
6. Do senior citizens get higher interest rates on FDs? ▼
Yes. Most Indian banks offer senior citizens (aged 60 and above) an additional 0.50% to 0.75% interest rate over standard rack rates.
7. Can I withdraw a fixed deposit before maturity? ▼
Yes. Most banks permit premature withdrawal, but levy a penalty (typically 0.50% to 1.00%) by lowering the effective interest rate paid for the actual period held.
8. Can I obtain a loan or credit card against my FD? ▼
Yes. Banks offer overdraft facilities or loans up to 90-95% of your deposit value at interest rates typically 1% to 2% above the FD rate, with zero processing charges.
9. What happens if an FD is not renewed upon maturity? ▼
Unless auto-renewal instructions are provided, banks either auto-renew the deposit for the same tenure at prevailing rates or transfer the funds to your savings account.
10. Is post office fixed deposit (TD) safe? ▼
Yes. Post Office Time Deposits (POTD) are backed directly by the sovereign guarantee of the Government of India, carrying zero credit risk.
