FD Calculator – Fixed Deposit Interest Checker
Calculate Fixed Deposit maturity amount and effective annual yield. Choose compounding frequencies and toggle senior citizen rates.
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How Bank Fixed Deposit Interest Compounds
A Fixed Deposit is a secure savings instrument offered by banks and post offices. Interest is usually compounded quarterly in Indian banks. You lock in a fixed lump sum for a specific tenure, shielding your capital from stock market fluctuations.
Under Section 80C of the Income Tax Act, you can claim tax deductions up to ₹1.5 Lakhs by investing in 5-year Tax Saver FDs, though these carry a mandatory 5-year lock-in period with no premature withdrawals.
Frequently Asked Questions (FAQ)
1. Can I withdraw my FD before maturity?
Yes, most banks allow premature withdrawal, but charge a penalty (typically 0.5% to 1% reduction in the applicable interest rate).
2. Are senior citizens offered better rates?
Yes, almost all Indian banks offer an additional interest markup of 0.50% to 0.75% to depositors aged 60 and above.