FD Calculator + FD vs MF
FD maturity plus an FD-vs-mutual-fund visualizer.
— After tax
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How this is calculated
FD maturity uses periodic compounding at your chosen frequency. Tax is applied to the interest at your slab rate to show the after-tax value. The comparison line projects the same amount as a lump-sum mutual-fund investment — useful to see the long-run gap, though MF returns are not guaranteed.
Is an FD safe?
Bank FDs are low-risk and insured up to ₹5L per bank by DICGC, but after tax and inflation the real return is often modest.
FD or mutual fund?
FDs suit short-term, capital-protection goals; equity mutual funds suit long-term growth but carry market risk. Many investors use both.
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How FD interest is calculated
Indian banks typically compound fixed-deposit interest quarterly. The maturity amount follows:
A = P × (1 + r ÷ 4)4t
where P is your deposit, r the annual rate, and t the tenure in years. A cumulative FD reinvests every interest payout so the full compounding works for you; a payout FD credits interest to your account monthly or quarterly — handy for income, but the paid-out interest stops compounding. The calculator above shows the cumulative maturity value and lets you set the exact rate your bank offers.
FD vs mutual fund: an honest comparison
An FD guarantees its rate, and bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank. The trade-offs: FD interest is fully taxable at your slab rate, and after 5–7% inflation the real return on a typical FD is close to zero. Equity mutual funds carry genuine short-term risk — they can and do fall — but diversified funds have historically beaten both FDs and inflation over 7+ year horizons. The comparison view above puts both side by side for your amount and time frame so the difference stops being abstract. Planning a monthly investment instead of a one-time deposit? Try the SIP calculator.
When to prefer an FD
FDs genuinely win in three situations: your emergency fund (capital must not fluctuate), goals under about 3 years (too short for equity volatility to average out), and predictable income for seniors — most banks pay senior citizens roughly 0.5% extra, and payout FDs turn a corpus into a monthly cheque. For long-term wealth building, the inflation math above usually argues for at least some equity exposure.
Frequently asked questions
Is FD interest taxable?
Yes — FD interest is added to your income and taxed at your slab rate. Banks deduct TDS above a yearly interest threshold; you can claim it back when filing if your total income is below the taxable limit.
Are fixed deposits completely safe?
Bank FDs are insured by DICGC up to ₹5 lakh per depositor per bank (principal plus interest combined). Spreading large amounts across banks keeps you fully within the insured limit.
FD or mutual fund — which is better?
Neither is universally better. FDs suit short-term, must-not-fail goals; diversified mutual funds have historically beaten FDs and inflation over 7+ year horizons but can fall in between. Match the product to the goal date.
What happens if I break an FD early?
Banks typically pay a lower rate for the period the money actually stayed, often minus a small penalty (commonly 0.5–1%). Laddering several smaller FDs avoids breaking one big deposit.
What is an FD ladder?
Splitting one large deposit into several FDs maturing in different years. Something matures regularly, you re-lock at current rates, and an emergency never forces you to break the whole amount.
These calculators provide estimates for educational purposes only and are not personalized investment advice. Mutual fund investments are subject to market risks.