Term Deposit (Fixed Deposit) Calculator

Calculate the maturity amount of your one-time term deposit investment.

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Years

About Our Term Deposit (FD) Calculator

A Term Deposit, commonly known as a Fixed Deposit (FD), is a secure investment instrument offered by banks and financial institutions. It provides a fixed interest rate for a specified period, making it a reliable option for risk-averse investors. Our calculator helps you determine the maturity value and interest earned on your FD.

Term Deposit Formula

The formula to calculate the maturity value of a term deposit is:

A=P(1+rn)nt

Where:

  • A = Maturity Value
  • P = Principal Amount
  • r = Annual Interest Rate (in decimal)
  • n = Compounding Frequency per year
  • t = Tenure (in years)

Frequently Asked Questions (FAQ)

  • What is compounding frequency?
    • Compounding frequency is the number of times interest is calculated and added to the principal in a year. More frequent compounding (e.g., quarterly) results in a higher maturity value compared to less frequent compounding (e.g., annually) for the same interest rate.
  • Can I withdraw my term deposit before maturity?
    • Yes, most banks allow premature withdrawal of term deposits. However, it usually comes with a penalty, such as a lower interest rate than originally agreed upon. The terms and conditions for premature withdrawal vary between financial institutions.
  • 3. Is the interest earned on a term deposit taxable?
    • Yes, the interest earned on a term deposit is generally taxable under "Income from Other Sources" as per the income tax laws of your country. Some jurisdictions may allow for tax-saving fixed deposits under specific schemes.