Calculate your Fixed Deposit maturity amount instantly. Compare compounding frequencies and see why bank choice matters for your FD returns.
A Fixed Deposit (FD) is the most trusted investment in India — a guaranteed return on a lump sum deposited with a bank or NBFC for a fixed tenure at a locked-in interest rate. Unlike equity investments, your capital is completely safe and the return is known upfront.
FDs are insured up to ₹5 lakh per depositor per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC). Even if the bank fails, your money up to ₹5 lakh is protected.
FDs use compound interest, where interest is added to the principal at regular intervals and then earns interest itself. The frequency of compounding matters — quarterly compounding gives more than annual.
| Frequency | Maturity Amount | Interest Earned |
|---|---|---|
| Annual | ₹1,22,504 | ₹22,504 |
| Half-yearly | ₹1,22,882 | ₹22,882 |
| Quarterly | ₹1,23,144 | ₹23,144 |
| Monthly | ₹1,23,368 | ₹23,368 |
| Feature | FD | Savings A/C | Liquid Fund | RD |
|---|---|---|---|---|
| Returns | 6.5–9% | 2.5–4% | 6.5–7.5% | 6–7.5% |
| Capital safety | Guaranteed + insured | Guaranteed | Very low risk | Guaranteed |
| Liquidity | Premature exit (penalty) | Anytime | Next day | Monthly commitment |
| Tax on returns | Taxable (income slab) | Taxable | Taxable | Taxable |
| Best for | Lump sum, known timeline | Daily expenses | Emergency fund | Regular saving habit |
Small finance banks like Unity SFB, ESAF SFB, and Jana SFB typically offer 8.5–9.5% — significantly higher than large banks. As long as you stay within the ₹5L DICGC insurance limit per bank, the risk is the same as any other bank.
Instead of one large FD, split into multiple FDs with different maturities (3 months, 6 months, 1 year, 2 years). This gives you regular liquidity without breaking any single FD early.
Always prefer quarterly compounding over annual when the option is available. Over 3 years at 7%, quarterly compounding earns ₹23,144 vs ₹22,504 for annual — a ₹640 difference on just ₹1 lakh.
If your total income is below the taxable limit, submit Form 15G (under 60) or Form 15H (senior citizen) at the start of each financial year. The bank will not deduct TDS, giving you better liquidity.