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FD Calculator

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Note: In India, banks use quarterly compounding to calculate interest in rupee

Fixed Deposit Return Amount

` 0

is your principal amount

` 0

is your maturity amount

` 0

is your interest amount

Fixed Deposit or FD, also known as a term deposit in banking parlance, is a safe investment option to strike the right balance in one’s financial portfolio. FD Calculator is a tool that helps in finding the right balance in terms of how much to invest in FD and for how long.

Let us know in detail about the features and benefits of using a fixed deposit calculator.

What is an FD Calculator?

Fixed deposit calculator is a tool designed to get an estimate about the maturity amount that the investor should expect at the end of a chosen tenure for a specified deposit amount at the applicable rate of interest.

FD calculator is a tool that helps in calculating how much interest one would earn on a fixed deposit. It uses the deposit amount, FD interest rate and tenure of the fixed deposit to calculate the maturity amount. Maturity amount is the amount one gets at the end of the FD tenure. It consists of the total interest earned on the principal (deposit amount).

How to Use FD Calculator?

To use the FD calculator available here, at Paisabazaar.com, follow the steps stated below:

  • Enter the deposit amount in the first field (Fixed Deposit Amount)
  • Enter the interest rate in the next field (Rate of Interest)
  • Enter the tenure duration (the period for which you want FD to be active)

Note: You can choose to enter FD duration in months or years.

Hit the “Calculate” button. The estimated maturity amount will be displayed in the table below the FD Calculator tool. You can also check the total interest in the column next to the maturity amount.

Why should you use FD calculator?

Just like any other financial decision, investing in an FD also entails ticking one’s budget and make it work in unison with the individual’s financial goals.

Fixed deposit is all about minimizing risks and guaranteed returns. If you invest in the market (like equity mutual funds), there remains a considerable risk. Your FD investment can help absorb losses, if any, to a certain limit. For this, you should know how much to put into your FD account. And this can be easily estimated using the FD Calculator by Paisabazaar.

Fixed deposit calculator also helps in comparing the various types of FD schemes offered by banks and other financial companies. One can comprehend which scheme provides the best returns at the desired tenure.

Suggested ReadBest FD Schemes in 2020 

FD Calculator – Benefits

Some of the prime merits of using the FD Calculator present at Paisabazaar are listed here:

  • No scope of errors since it’s an automatic calculator
  • Zeroing-in of cumbersome calculations at multiple tenure, amount and rates thus saving time and effort
  • The tool is free of cost thus customers can use it multiple times and compare returns for different combinations of FD rates, tenure and amount

Best FD Interest Rates for 2020

(Applicable to domestic deposits of up to Rs. 2 crore)

Top FD Interest Rates by Commercial Banks

Commercial banks encompass all banking-related services including credit cards, NRI services, business loans, trade & forex along with basic lending and accepting deposits.

Tenure: 1 Year

Name of the Bank FD Rates (p.a.)
Regular Citizens Senior Citizens
RBL Bank 6.85% 7.35%
IDFC First Bank 5.75% 6.25%
Lakshmi Vilas Bank 6.25% 6.75%
Bandhan Bank 5.75% 6.50%
IndusInd Bank 6.75% 7.25%
Yes Bank 6.75% 7.25%
DCB Bank 6.95% 7.45%
Canara Bank 5.35% 5.85%
Federal Bank 5.50% 5.85%

(Interest rates updated on 16th September 2020)

Tenure: 3 Years

Name of the Bank

FD Interest Rate
Regular Citizens

Senior Citizens

DCB Bank 6.95% 7.45%
Lakshmi Vilas Bank 6.00% 6.50%
Bandhan Bank 5.75% 6.50%
RBL Bank 7.15% 7.65%
IDFC First Bank 5.75% 6.25%
Yes Bank 6.75% 7.25%
IndusInd Bank 6.75% 7.25%
Axis Bank 5.50% 6.00%
Federal Bank 5.50% 6.00%

(Interest rates updated on 16th September 2020)

Tenure: 5 Years

Name of the Bank Interest Rate
Regular Citizens Senior Citizens
Deutsche Bank 6.25% 6.25%
DCB Bank 6.95% 7.45%
RBL Bank 6.50% 7.00%
Bandhan Bank 5.75% 6.50%
Lakshmi Vilas Bank 6.00% 6.50%
IDFC First Bank 5.75% 6.25%
Yes Bank 6.75% 7.25%
IndusInd Bank 6.75% 7.25%
Axis Bank 5.50% 6.00%
Federal Bank 5.50% 6.00%

(Interest rates updated on 16th September 2020)

Best FD Rates by Small Finance Banks

Small finance banks are those banks that are equipped to provide basic banking services of lending and acceptance of deposits. These banks are established for inclusion of borderline sections of the economy like small business units, small farmers and non-organized sector bodies along with micro & small industries. Small finance banks are regulated by the RBI, just like commercial banks.

Tenure: 1 Year

Name of the Bank

Rate of Interest
Regular Citizens

Senior Citizens

Suryoday Small Finance Bank 6.75% 7.25%
Utkarsh Small Finance Bank 7.25% 7.75%
Equitas Small Finance Bank 7.10% 7.70%
Jana Small Finance Bank 6.90% 7.40%
Ujjivan Small Finance Bank 6.50% 7.00%
Fincare Small Finance Bank 6.95% 7.45%
AU Small Finance Bank 5.50% 6.00%
North East Small Finance Bank 7.00% 7.50%

(Interest rates updated on 16th September 2020)

Tenure: 3 Years

Name of the Bank Rate of Interest
Regular Citizens Senior Citizens
Suryoday Small Finance Bank 7.15% 7.65%
Utkarsh Small Finance Bank 7.25% 7.75%
Equitas Small Finance Bank 7.15% 7.75%
Jana Small Finance Bank 7.50% 8.00%
Ujjivan Small Finance Bank 6.05% 6.55%
Fincare Small Finance Bank 7.25% 7.75%
AU Small Finance Bank 6.75% 7.25%
North East Small Finance Bank 7.00% 7.50%

(Interest rates updated on 17th September 2020)

Tenure: 5 Years

Name of the Bank

Rate of Interest
Regular Citizens

Senior Citizens

Suryoday Small Finance Bank 7.50% 8.00%
Utkarsh Small Finance Bank 7.25% 7.75%
Equitas Small Finance Bank 6.75% 7.35%
Jana Small Finance Bank 7.00% 7.50%
Ujjivan Small Finance Bank 5.80% 6.30%
Fincare Small Finance Bank 6.50% 7.00%
AU Small Finance Bank 6.50% 7.00%
North East Small Finance Bank 6.50% 7.00%

Interest rates updated on 17th September 2020. Source: Official websites of the mentioned banks.

Suggested Read: Best NRE FD Rates 2020

How is FD Interest Calculated?

There are two methods of calculation of interest on a fixed deposit, viz. Simple Interest and Compound Interest.

What is Simple Interest?

Simple interest is the interest earned on an investment at a pre-decided rate of interest for a specific period of time. It is calculated by multiplying the principal amount, the rate of interest per annum and the time for which the money is lent in years.

Simple Interest Formula:

SI = P x R x T/ 100

Where,

SI = Simple Interest

P = Principal (amount invested)

R = Rate of Interest (in %)

T = Tenure (time for which deposit is kept in FD account)

For example, if a sum of Rs 10,000 is invested for 3 years at 10% interest rate per annum, then at the time of maturity,

SI = 10,000*10*3/100 = Rs 3,000

Maturity Amount = Rs 13,000

What is Compound Interest?

Compound interest is the interest earned on principal as well as interests. It is calculated by multiplying the principal amount with the interest rate raised to the number of periods in years for which the interest will be compounded.

Formula for Compound Interest:

A = P (1+r/n) ^ (n * t)

Where,

A = Maturity Amount

P = Principal amount

r = Rate of Interest (in decimals)

n = number of compounding in a year

t = number of years

For example, if a sum of Rs 10,000 is invested for 3 years at 10% compound interest rate (quarterly compounding), then at the time of maturity,

A= 10,000 {1 + (0.1/4)} ^ (4 * 3)

A = 10,000 (1 + 0.025) ^ (12)

A = 10,000 (1.025) ^ (12) = Rs. 13,449 (approximately)

Compound Interest (CI) Earned over 3 years = Maturity Amount – Principal Amount

CI = 13,449 – 10,000 = Rs. 3,449

Factors Affecting Fixed Deposit Interest Rates

Banks and other financial institutions providing fixed deposit as an investment option to customer take the following points in consideration while deciding on the FD interest rates:

  • Tenure or Period of Deposit

Tenure or the period of deposit is the period of time for which the deposit amount stays invested in the fixed deposit. This period varies from bank to bank and usually ranges from 7 days to 10 years. Varying terms fetch varying fixed deposit interest rates.

  • Age of the Applicant

A fixed deposit provides (banks and other financial institutions) offer preferential interest rates to senior citizens that may range anywhere from 0.25% to 0.75% over the regular rate of interest for customers. For some banks, the age limit is 60 years and above while some banks encompass investors with 55 years and above in the senior citizen category.

Suggested Read: FD Interest Rates for Senior Citizens in India

  • Current Economic Conditions

Banks and other financial institutions providing fixed deposits keep on correcting their interest rates as per the changes prevailing in the economy including change in repo rate by the Reserve Bank of India (RBI) and inflation. Thus, it is safe to say that prevailing economic conditions carry the potential to impact rates of interest for fixed deposits.

FD Calculator – FAQs

What is an FD Calculator?

An FD calculator is a tool which calculates how much one shall get on investing in a fixed deposit (FD) at the time of maturity. This tool uses inputs like the deposit amount, tenure of the FD and the prevailing fixed deposit rate for the said tenure.

How is the interest on a bank FD calculated?

Usually, the interest for FD with a period of 6 months or less is calculated at simple interest. Compounding of interest is done for FDs with a term period of more than 6 months. When going for monthly interest payout, banks mostly calculate interest on discounted rates.

What are the details required to use an FD Calculator?

Deposit amount, tenure of the deposit as well as the prevailing FD rates are required to use an FD calculator.

Is it free to use the FD calculator at Paisabazaar.com?

Yes. The FD calculator available at Paisabazaar.com is free to be used anytime.

Is the maturity amount calculated by the tool an exact figure or an approximate one?

The figures provided by the FD interest calculator are the closest estimate. This is because the rates may change at the time of actual purchase (e.g. in case of premature withdrawal). Thus, the figures are for reference purpose only, providing the best estimate.

What is the minimum tenure for which one can invest in a fixed deposit?

Customers can deposit for a minimum of 7 days in a fixed deposit. However, this figure may be higher for some banks.

Is the interest earned on a fixed deposit taxable?

Yes. The interest earned on an FD is taxable. However, as per the Section 80C of the Income Tax Act, 1961, investors can claim deductions for up to Rs. 1.5 lakh per financial year.

What is the interest rate for senior citizens for fixed deposits?

Most of the banks provide senior citizens with preferential FD rates (e.g. 0.50% extra). For banks like Axis Bank, preferential interest rates are awarded at different proportions for select tenure.

Does the fixed deposit interest rate calculator available at Paisabazaar.com give same results for FD schemes as tools like SBI FD Calculator and HDFC Calculator does?

Yes. The fixed deposit is calculated using the same formula (simple interest or compound interest) across all the FD interest rate calculators. Therefore, be it SBI or HDFC FD calculator, maturity amount shall be the same if the deposit amount, tenure and the interest rate are the same.

Is it compulsory to provide PAN card for opening a fixed deposit?

Yes. It is mandatory to produce the PAN card when applying for any FD scheme.

Is there a different FD calculator for senior citizens and tax saving FD schemes?

No, there is no separate fixed deposit calculator for tax saving FD schemes or for senior citizens. The tool requires only the deposit amount, tenure and the fixed deposit interest rates to calculate the maturity amount.

FD vs Other Investment Scheme