Fixed Deposit Calculator – MoneyGyaan
The Fixed Deposit Calculator is a simple and efficient way to calculate the interest earned on your investments or savings. Whether you’re using simple or compound interest, this tool allows you to quickly compute the total interest based on the principal amount, interest rate, time period, and compounding frequency. With an easy-to-use interface, you can input your details, choose between different compounding options, and instantly see the principal, interest earned, and total amount. Perfect for anyone looking to manage their finances better, this calculator simplifies complex interest calculations into just a few clicks!
FD Interest Calculator
FAQs – Fixed Deposit Calculator
Why should I invest in Fixed Deposits (FDs)?
Fixed Deposits (FDs) are a safe and reliable investment option because they offer guaranteed returns and are unaffected by market fluctuations. They are flexible, allowing you to choose from a wide range of tenures, and you can even avail of an overdraft facility if needed. In emergencies, you can withdraw your FD if it doesn’t have a lock-in period. Additionally, FDs come with tax-saving options under Section 80C of the Income Tax Act, providing financial benefits for taxpayers.
What are Fixed Deposit interest rates?
Fixed Deposit interest rates depend on the bank or NBFC, the tenure, and the investment amount. Typically, interest rates range from 4.00% to 7.50%, though senior citizens often get an additional 0.50% interest. Some platforms, like the Moneycontrol app, offer up to 9.10% on FDs. It’s advisable to compare rates across different banks and NBFCs before investing.
What are the different types of Fixed Deposits?
There are several types of Fixed Deposits (FDs) based on your financial goals:Regular FD: A common FD with a fixed interest rate and tenure.Tax Saver FD: Offers tax benefits under Section 80C but comes with a 5-year lock-in period.Floating Rate FD: Interest rates are linked to a reference rate (e.g., RBI Repo Rate), giving you flexibility with fluctuating rates.Flexi FD: Links your FD with your savings or current account, transferring excess balance into the FD for higher returns.Senior Citizen FD: Designed for individuals aged 60 and above, offering higher interest rates, usually 0.50% more than regular FDs.Corporate FD: Offered by NBFCs or Housing Finance Companies with higher interest rates compared to regular FDs.
What is premature closure of an FD?
Premature closure means withdrawing your FD before its maturity date. In most cases, this results in a lower interest payout than initially agreed upon. If the FD has a lock-in period, premature closure is not allowed. Always check the terms before committing to an FD.
How is FD interest taxed?
Interest earned on FDs is taxable. However, regular customers can get an exemption on FD interest up to Rs. 40,000 per financial year, and senior citizens can claim up to Rs. 50,000. If your income is below the taxable threshold, you can avoid TDS deduction by submitting Form 15G or Form 15H to the bank.
