A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs where you deposit a lump sum amount for a fixed period at a predetermined interest rate. FDs are one of the safest investment options in India with guaranteed returns.

How is FD maturity amount calculated?

FD maturity is calculated using compound interest formula: M = P × (1 + r/n)^(n×t), where P is principal, r is annual rate, n is compounding frequency (usually 4 for quarterly), and t is time in years. Our calculator uses this standard formula.

Which bank offers the highest FD rate in India?

FD rates vary across banks and change frequently. Generally, NBFCs like Bajaj Finserv, Shriram Finance, and Mahindra Finance offer higher rates (7.5-8%). Among banks, small finance banks and private banks like IndusInd, Yes Bank, and Bandhan Bank offer competitive rates.

Is FD interest taxable?

Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if total income is below the taxable limit.

What is the DICGC insurance on FD?

DICGC (Deposit Insurance and Credit Guarantee Corporation) insures bank deposits up to ₹5 Lakh per depositor per bank. This covers both principal and interest. Note: NBFC FDs are NOT covered by DICGC insurance.