Calculate fixed deposit returns with simple and compound interest options
Our FD return calculator helps you estimate the maturity value of your fixed deposit with both simple and compound interest options. Here's how to use it:
Calculate returns using both simple interest and compound interest formulas.
Choose from annual, semi-annual, quarterly, or monthly compounding for accurate results.
See pie charts that clearly show your principal amount vs. interest earned.
View line charts showing how your investment grows year by year.
Understand exactly how your returns are calculated with detailed steps.
Perfect for learning about simple vs. compound interest and financial planning.
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal amount plus accumulated interest. Compound interest typically yields higher returns over time due to the "interest on interest" effect.
Compound interest is calculated using the formula: A = P × (1 + r/n)^(n×t), where A is the maturity amount, P is the principal, r is the annual interest rate, n is the compounding frequency, and t is the time in years.
Compound interest is generally better for long-term investments as it allows your money to grow faster due to the compounding effect. Most banks offer compound interest on fixed deposits, which results in higher returns compared to simple interest.
Banks deduct TDS (Tax Deducted at Source) at 10% on interest income from FDs if it exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS deduction if your total income is below the taxable limit.
Yes, most banks allow premature withdrawal of FDs, but usually with a penalty of 0.5-1% on the interest rate. The exact terms vary by bank and FD scheme.
Yes, fixed deposits offer guaranteed returns as the interest rate is fixed at the time of investment. However, the actual returns may be affected by taxes and inflation.