FD Details
💡 Most Indian banks compound FD interest quarterly
FD Maturity
📊 Maturity Breakdown
💡 FD Insight
Your FD will grow steadily with quarterly compounding. Senior citizens get extra 0.5% bonus.
Frequently Asked Questions
A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs where you deposit a lump sum for a fixed period at a predetermined interest rate. FDs offer guaranteed returns with no market risk.
FD interest is calculated using compound interest formula: A = P × (1 + r/n)^(n × t). Most Indian banks compound interest quarterly, which is more beneficial than annual compounding.
FD interest rates in India typically range from 5% to 8% per year. Senior citizens get an additional 0.5% interest. Small finance banks may offer up to 9%. Rates vary by bank and tenure.
Monthly compounding gives the highest returns, followed by quarterly, half-yearly and yearly. However, most banks use quarterly compounding for FDs in India.
Yes, FD interest is fully taxable as per your income tax slab. TDS is deducted if interest exceeds ₹40,000/year (₹50,000 for seniors). You can submit Form 15G/15H to avoid TDS if your income is below taxable limit.
Yes, premature withdrawal is allowed but attracts a penalty of 0.5% to 1% on the interest rate. Tax-saving FDs (5-year lock-in) cannot be withdrawn early.