ToolkitBeeHow to use
- Enter the amount you want to deposit.
- Enter the interest rate offered by the bank.
- Enter the time period in years.
- Choose how often interest is compounded (most banks use quarterly).
Formula
A = P × (1 + r ÷ k)k × t
where P = deposit, r = yearly rate ÷ 100, k = compounding periods per year and t = years.
Frequently asked questions
How often do banks compound FD interest?
Most Indian banks compound FD interest quarterly. Check your bank's terms to be sure.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks may also deduct TDS above a certain limit.
Do senior citizens get a higher rate?
Most banks offer senior citizens an extra 0.25%–0.50% a year. Enter the higher rate to see the difference.