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FD Calculator: Fixed Deposit Interest Rate Calculator

Bank interest rates have been sliding for the past many quarters now. It is hence imperative to make the maximum returns from bank fixed deposits. We have given a bank interest rate calculator, which is extremely friendly to use and will help you to maximize your returns.

Principal (Rs.)
Rate of Interest
Period of Deposit
Frequency

Why To Use Bank Interest Rate Calculators?

It is important to remember that on large sums of money, even a 0.25 per cent interest rate differential can mean a lot.

Another reason to use these fixed deposit calculators, is that like earlier, you are not constrained by going only to the bank in your area. Let us give an example. By using these calculators you know which bank offers the highest interest rates and maturity on any given sum of money.

So, for example if RBL Bank offers higher interest rates than ICICI Bank, which it does at the moment, you can opt for RBL Bank. You do not have to worry that the bank does not have a branch in your area. You can open a fixed deposit online and most banks send executives to collect the form and stuff.

So, comparing fixed deposits online through the use of calculators, will be advantageous for you. There are a few things that you must remember when it comes to bank fixed deposits. One is you should remember that there is a tax applicable on these deposits.So, if your interest amount is more than Rs 10,000, the bank will deduct TDS. In case, you do not wish that TDS being deducted you should submit form 15G and form 15H.

What is Fixed Deposit?

A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It is known as a time deposit. They are considered to be very safe investments.

Features of Fixed Deposit Account

The main purpose of FD account is to enable the individuals to earn a higher rate of interest on their surplus funds. The amount can be deposited only once. Next time deposits, separate accounts need to be opened. The depositor is given a fixed deposit certificate for proof, which depositor has to produce at the time of maturity or renewed for a further period. Nominee person entitled to receive funds accrued in a particular FD upon depositor's death.

Benefits of Fixed Deposits:

  • Always the rate of interest is high in Fixed Deposit compared to other deposits.
  • Customers can avail loans against FDs up to 80 to 90 percent of the value of deposits.
  • A wide range of tenures, ranging from 7 days to 10 years, to suit your investment plan.
  • Facility of automatic renewal.
  • Tax Saving benefits on 5 year plus FDs qualify for deductions U/S 80C of the Income Tax Act,1961.
  • FDs become an attractive investment avenue as they offer good returns and are almost completely secure with no risk. You are assured of returns for your investment.

Disadvantages of Fixed Deposits

  • FD as an investment is less risky then this aspect is the reason why its returns are lower compared to other risk investment options.
  • Then there is an issue of liquidity, while your money is locked up with the bank, it is not easy to withdraw at a moment's notice.
  • In fact if you withdraw before the agreed duration, you will be penalised.
  • Also, there is no tax benefit in below 5 year fixed deposit investment, unlike the infrastructure bonds or the National Savings Certificate (NSC). So, even from a taxation point this is not the best of investment options.

FAQs

Who is eligible to invest in Fixed Deposit?

A resident individual can invest in a fixed deposit scheme irrespective of their age. Apart from this private or public limited companies, Hindu Undivided Family, Societies, Partnership Firms can also invest in fixed deposits.

What it the limit of the amount of lock-in in case of fixed deposit?

The minimum and maximum amount of fixed deposit will usually vary according to the bank. But if the investment amount is more than Rs 1 crore or so, then one can avail a special customized interest rate from the respective bank.

Do fixed deposits provide special rates for senior citizens?

Yes, the senior citizens in the country are eligible to get higher interest rates when compared to the other normal depositors. This facility can be availed even if one of the co-applicant is not a senior citizen.

What is the term of Fixed Deposit accounts?

The term of fixed deposits varies from short term, medium term to long term. The short term deposits usually range between 7 days to 1 year (365 days). The medium-term deposits range between 365 days or 1 year to 5 years and long term deposits are between 5 years to 10 years.

Is there any penalty for premature withdrawal in case of fixed deposits?

Yes, if anyone wishes to close the fixed deposits before the completion of the maturity date, the banks or financial institutions will levy a premature withdrawal of 0.50 per cent or 1 per cent below the contracted rate (whichever is lower) on all tenors.

What is a Cumulative Fixed Deposit?

A Cumulative fixed deposit is a kind of term deposit wherein the interest amount is reinvested along with the principal amount. The amount which will be received at the time of maturity will include the principal amount plus the total interest accumulated amount. This kind of deposits suits those investors who do not need a regular interest payout and prefer to get higher returns on their term deposits at the time of maturity period.

What is the tenure for Cumulative Fixed Deposits?

The tenure for cumulative fixed deposits ranges between 12 months to 60 months.

How to redeem the fixed deposits?

The fixed deposits which carries maturity instruction as auto closure are automatically closed on the maturity date and the proceeds of the same will be transferred to the individual's savings bank account (if the account holder maintains one with the bank).

Fixed Deposits with maturity instruction as auto-renewal can also be closed using the following channels:

  • By visiting the nearest bank branch
  • Internet Banking
  • By visiting the respective bank’s branch wherein the FD account was opened

Will a fixed deposit account’s maturity amount will be automatically credited into the depositor’s account on the maturity date?

The Fixed Deposit account’s maturity amount will not be automatically credited to the depositor’s savings account on the date of maturity until and unless the depositor has given standing instructions to the bank to do so. The depositor will have to sign on the fixed deposit receipt and authorize the bank officials to transfer the maturity value to his/her savings account.

Latest Atricles

HDFC Bank Revises Fixed Deposit Interest Rates

The HDFC Bank has revised the interest rates on its fixed deposits after the Reserve Bank of India’s trimmed the key repo rate.

The RBI has cut repo rate for the third consecutive time by 25 bps to 5.75%.

So the new interest rates of the bank will come into effect starting from June 12, 2019.

FD Tenure New revised rates on FD whose value is less than Rs. 2 crores.

Period of Deposit                                                Interest Rate


7-14 days                                                                     3.5% 
46 days to less than 9 months                                6.25% 
9 months to less than 1 year                                   6.75%
1 year                                                                           7.30% 
> 1 year to 2 years                                                     7.30%
2 years 1 day to 2 years 15 days                             7.40% 
2 years 16 days                                                          7.40%
2 years 17 days – 3 Years                                         7.40% 
> 3 years but up to 5 years                                      7.25% 
5 years to 10 years                                                    6.50%

15 June 2019
Public Sector / Nationalized Banks
Indian Private Sector Banks
Foreign Banks
Cooperative Banks
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