How does compounding frequency affect my FD returns?

The more frequently interest is compounded, the higher your returns will be. For example, with the same interest rate, a quarterly compounded FD will earn slightly more than an annually compounded one because the interest earned is added to the principal more often, allowing it to earn its own interest sooner.

Free Fixed Deposit (FD) Calculator | Calculate Your FD Maturity Value

The Financial Fortress: Why FDs Are a Safe Harbor

In the unpredictable ocean of finance, where market-linked investments like stocks and mutual funds are like sailing ships braving storms for high rewards, a Fixed Deposit (FD) is like a sturdy, impenetrable fortress on a safe island. You don't go to a fortress seeking adventure and massive, quick gains; you go there for security, predictability, and peace of mind.

When you place your money in an FD, you are locking it away in this fortress for a set period. In return, the guardian of the fortress (the bank) gives you a solemn promise: your money will be safe, and it will grow at a steady, predetermined rate. There are no surprises, no market volatility, and no sleepless nights worrying about a crash. This calculator helps you see exactly how much your treasure will grow inside this financial fortress by the time you're ready to unlock it.

Compare with Other Investment Tools

SIP Calculator: Compare the potential returns of a market-linked investment with the safety of an FD.
Inflation Calculator: Check if your FD's interest rate is beating inflation to ensure a positive "real" return.
Compound Interest Calculator: A versatile tool to understand the core principle behind your FD's growth.

Frequently Asked Questions

What is a Fixed Deposit (FD)?

A Fixed Deposit is a safe investment option offered by banks where you deposit a lump sum of money for a predetermined period (tenure) at a fixed interest rate. At the end of the tenure, you receive your principal amount plus the accumulated interest.

How does compounding frequency affect my returns?

The more often interest is compounded, the more you earn. An FD that compounds quarterly will yield more than one that compounds annually at the same interest rate. This is because interest is added to your principal more frequently, and that new, larger principal then starts earning interest itself.

Is the interest earned on an FD taxable?

Yes, in most countries, the interest you earn from an FD is considered part of your income and is taxable according to the income tax slab you fall under. It's always a good idea to consult a financial advisor for specific tax advice.

Fixed Deposit (FD) Calculator

Invested Amount

Interest Earned