Fixed Deposit Calculator

There are two methods of calculating interest on a Fixed Deposit:

1. Simple interest method

Under this method, you multiply the principal amount, interest rate, and tenure to get the result. The formula is:

Simple Interest (SI) = P (Principal amount) x R (Rate of interest) x T (Tenure) divided by 100 or P x R x T/100

For instance, if you invest ₹ 10,000 @ 6% p.a. for 5 years, you get:

10,000 x 6 x 5/100 = ₹ 3000

You will earn ₹ 3000 in 5 years.

2. Compound interest method

The compounding method enables you to earn interest on interest, and most banks offer compound interest. For example, if you invest ₹ 10,000 @ 6% p.a. for 5 years compounded quarterly, you will get ₹ 13,469* on maturity.

To arrive at the calculation, you can use this formula:

Compound Interest (CI) = P {(1 + i/100n) ^nt – 1}, where P = Principal, I = rate of interest, t = time, n = no. of times interest is compounded annually.

Compound Interest (CI) = 10000 {(1 + 6/100*5)^5*4 – 1} = ₹ 3,469*

On maturity, you will get ₹ 13,469*.

*These are indicative numbers and may differ basis the actual number of days considered for calculation.

The minimum amount required to open an FD with IDFC FIRST Bank is ₹ 10,000.

The minimum tenure for a Fixed Deposit is 7 days.

Senior citizens can submit Form 15H, while others can submit Form 15G to avoid the deduction of TDS on income earned on a Fixed Deposit.

The FD can be withdrawn prematurely, but a penalty may be levied as per the Bank’s policy. If you want to withdraw partially, the penalty will be subject to ‘Premature Closure Penalty’ as decided by IDFC FIRST Bank on the date of opening a deposit.

Fixed Deposits offer guaranteed returns and generally, the interest rates promised at the time of account opening remain the same throughout the tenure. The rates are decided by the bank based on multiple factors, including:

1. Repo rates
2. Inflation
3. Investment tenure
4. Investment profile (senior or non-senior citizen)
5. Type of FD (cumulative or non-cumulative)

Fixed Deposit accounts offer higher interest rates for senior citizens. The rates may vary depending on the type of FD and the bank. IDFC FIRST Bank offers an additional 0.5% interest rate on its FD accounts for senior citizens.

Yes, customers can choose to receive interest on a monthly basis. Fixed Deposit interest payouts can be classified into two types: cumulative and non-cumulative. A cumulative FD’s interest is calculated and reinvested on a quarterly basis. A non-cumulative Fixed Deposit account’s interest is calculated and paid monthly or quarterly.

A Fixed Deposit (FD) is a financial instrument provided by banks where you can deposit a lump sum amount for a fixed tenure at a predetermined interest rate. It offers a secure way to grow your savings with guaranteed returns. At the end of the tenure, you receive the principal amount along with the accumulated interest.

1. Guaranteed returns: FDs offer assured returns at a fixed interest rate, unaffected by market fluctuations.
2. Capital protection: Your principal amount remains safe and secured.
3. Flexible tenures: Choose from a variety of tenures ranging from a few days to several years.
4. Tax benefits: Certain FDs are eligible for tax deductions under Section 80C of the Income Tax Act.
5. Higher interest rates: Senior citizens can avail higher interest rates on their deposits.
6. Loan facility: You can avail loans against your FD without breaking the deposit.

1. Liquidity constraints: Premature withdrawals may result in penalties and reduced interest rates.
2. Inflation impact: Fixed returns might not always keep up with inflation, potentially reducing real returns over time.
3. Lower returns compared to other investments: FDs typically offer lower returns compared to equity or mutual fund investments.
4. Taxable interest: Interest earned on FDs is taxable, which can impact overall returns.

1. Standard Fixed Deposit: This is a regular FD where you deposit a lump sum for a fixed tenure at a predetermined interest rate. It offers flexible tenures and attractive interest rates.
2. Senior Citizen Fixed Deposit: Tailored specifically for individuals above 60 years of age, this FD provides higher interest rates, ensuring better returns on your savings.
3. Flexi Fixed Deposit: This FD combines the benefits of a Savings Account and a Fixed Deposit. You can link your Savings Account to the FD, allowing automatic transfer of surplus funds to the FD and ensuring higher returns while maintaining liquidity.