Knowledge Base

Fixed Deposit (FD)

Maturity = P × (1 + r/4)^(4×n) (quarterly compounding)

FD interest rates: 6-7.5% for general, 6.5-8% for senior citizens (50 bps extra).

Tax-saver FD: 5-year lock-in, deduction under 80C. But interest is still taxable.

Premature withdrawal: 0.5-1% penalty on interest rate. Check terms before locking in.

Ladder your FDs: Split into 1, 2, 3, 5-year FDs for liquidity and rate optimization.

FD interest above ₹40K/year (₹50K for seniors) attracts 10% TDS. Submit 15G/15H to avoid.

Pro Tip

Post-tax FD return for 30% bracket: 7% FD → ~4.9% after tax → ~-1% real return after inflation. Consider better alternatives.

Fixed Deposit (FD) - Complete Guide

Everything you need to know about Fixed Deposit (FD) and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Maturity = P × (1 + r/4)^(4×n) (quarterly compounding)

Key Concepts & Rules

FD interest rates: 6-7.5% for general, 6.5-8% for senior citizens (50 bps extra).

Tax-saver FD: 5-year lock-in, deduction under 80C. But interest is still taxable.

Premature withdrawal: 0.5-1% penalty on interest rate. Check terms before locking in.

Ladder your FDs: Split into 1, 2, 3, 5-year FDs for liquidity and rate optimization.

FD interest above ₹40K/year (₹50K for seniors) attracts 10% TDS. Submit 15G/15H to avoid.

Expert Strategy

Post-tax FD return for 30% bracket: 7% FD → ~4.9% after tax → ~-1% real return after inflation. Consider better alternatives.

How to use this Calculator?

1. Enter your specific values in the input fields above.
2. The calculator will render instant results as you type.
3. Check the breakdown table for year-by-year projections.
4. Adjust the inputs to see how different scenarios impact the final result.