What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is one of the safest financial investment schemes offered by banks and non-banking financial companies (NBFCs) in India. In an FD, you invest a lump sum amount for a fixed tenure at a predetermined rate of interest. Unlike market investments, returns on an FD are guaranteed from day one.
How is FD Interest Compounded?
Most Indian banks compound FD interest on a **quarterly basis** (four times a year). This increases your effective return rate compared to simple interest. The formula for cumulative quarterly compounding FD is:
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A = P × (1 + r/4)(4 × t)
Where A = Maturity Amount, P = Principal, r = Annual Interest Rate, and t = Time in Years.
FD Interest & Maturity Calculator
🏦 Bank Fixed Deposit (FD) Calculator
Key Features of Fixed Deposits:
- Safe Haven: DICGC insurances bank deposits (including FDs) up to ₹5 Lakhs per depositor per bank.
- Flexible tenure: Starts from 7 days up to 10 years depending on your requirement.
- Tax-saving FDs: FDs with 5-year lock-in period qualify for tax deduction under Section 80C.
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🌍 Explore All CalculatorsDisclaimer: The calculations provided by these calculators are estimates based on standard rules and formulas. For official financial, tax, or legal transactions, please consult with registered professionals or official banking resources. — Global Info Wiki Editorial Team
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