FD Calculator

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About FD Calculator

A fixed deposit (FD) calculator can be used to determine the interest and the amount that it will return on the time of maturity. A type of term investment which is offered by several banks and NBFCs is known as fixed deposit (FD). They are subjected to certain terms and conditions and also offer high rates of interests. Fixed deposits have certain fixed tenure for which they are kept with the banks and financial institutions. Usually the tenure varies from 7 days to 10 years.

The interest rate for FDs is constant at the time of establishing the deposit and unbiased of any fluctuations within the marketplace. Some financial establishments even allow one to interrupt their FDs prematurely on paying a sure penalty rate.

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How can an FD calculator help you?

  • Calculating the maturity amount of an FD can be a complex and time-ingesting process. An online FD calculator enables one to discern it without breaking a sweat.
  • FD adulthood calculations are complex regarding a couple of variables. An FD deposit calculator does all of the difficult paintings and gives you the accurate figures simply at the press of a button.
  • It helps you keep numerous time on those complicated calculations.
  • A fixed deposit go back calculator allows you to examine the adulthood amount and interest rates of FDs provided by exceptional financial institutions.
  • You can make a sorted decision once you have all the figures at your disposal.

The formula to determine FD maturity amount

There are two types of FD that you may avail-, it includes “simple interest FD and compound interest FD”. The fixed deposit calculator for simple interest FD uses the following formula –

M = P + (P x r x t/100), where –

P = P is the principal amount that you deposit
r = r is the rate of interest per annum
t = t is the tenure in years

For example, if you deposit a sum of Rs. 2,00,000 for 5 years at 10% interest, the equation reads –M= Rs. 2,00,000 + (2,00,000 x 10 x 5/100) = Rs. 3,00,000

For compound interest FD, the FD return calculator uses the following formula –

M= P + P {(1 + i/100) t – 1}, where –

P = P is the principal amount
i = i is the rate of interest per period
t = t is the tenure

For example, if you take the same variables, the compound interest FD will accrue,

M= Rs. 1,00,000 {(1 + 10/100) 5-1}

Or, Rs. 1,61,051

Is the interest earned on FDs subjected to tax?

Yes, the interest earned on bank constant deposit is taxable underneath the Income Tax Act, 1961.

The tax is deducted at supply by way of the financial institution as in step with the triumphing rules. The price for TDS (Tax Deduction at Source) is 10%, if PAN is furnished; and if no longer, TDS is 20%. No charge is levied over and above this basic rate.

TDS, with admire to interest earned on your financial institution FD, is deducted based on the whole interest projected at the mixture of your bank FD for the economic 12 months.

If the whole projected hobby in a financial 12 months crosses the threshold restrict, which is presently Rs 10,000 for non-senior residents, TDS is deducted proportionately from the existing fixed deposits on the time of hobby software. For senior residents (60 years and above), the union price range 2018 has increased the exemption of hobby income on deposits with banks (includes constant deposits) and put up places of work from Rs 10,000 to Rs 50,000.

What is the difference between Tax-saver Bank FD & Regular FD?

The cash invested in a tax-saver bank FD is eligible for a deduction of as much as Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961 and concern to a lock-in duration of five years.

You can e book a five-year tax saver FD with a minimum quantity of Rs one hundred and in multiples thereof but to concern to a maximum of Rs 1.5 lakh.

On the other hand, a normal bank FD isn’t subject to a lock-in duration and does not qualify for a deduction underneath Section 80C of the Income-Tax Act, 1961. The minimal investment amount in case of an everyday financial institution FD is Rs 5,000.

Is fixed deposit a better funding?

A fixed deposit gives an interest which is better than the interest at the savings account balance. So, it is better to spend money on an FD than your cash lying in a savings account. However, an investor should also evaluate other funding options that provide a go back better than a set deposit. These other funding alternatives are debt mutual budget, tax saving mutual price range. These options offer returns better than constant deposits however also comes together with a market fluctuation danger.

The interest on FD is either paid at regular durations to an investor or paid at FD adulthood, as opted via an investor. A separate financial institution account is not required to invest in a fixed deposit account

The constant deposit calculator helps an investor estimate the FD adulthood amount and the wealth to be won meeting his economic goals. The more the deposit quantity for a longer duration, the better can be the relevant hobby price and interest earned because of the electricity of compounding.

The constant deposit calculator best presents an estimation of wealth received and does no longer offer any warranty or declare the price envisioned based totally on the inputs provided.

Frequently Asked Questions

Is the FD calculator free to use?
How much time does it take to use the FD calculator?
How does the FD calculator help in future financial planning?
Is there any processing fee for Loan against Fixed Deposit?
What is the maximum loan amount that an account holder can borrow?
Are there any foreclosure or part pre-payment charges?
What is the rate of interest on your Loan against Fixed Deposit?
What is the fixed deposit interest rate for senior citizens?
What is the minimum tenure for which one can invest in fixed deposits?