Fixed Deposit

Services details

Overview

Fixed deposits (FD) are one of the most popular savings instruments in India that let you deposit money into a bank or NBFC for a specified period of time which grows at a fixed rate of return. FDs are a great way to save money for both long and short-term financial needs. FDs are an especially great way to save, as they bear little to no risk as returns are predetermined and not affected by market fluctuations.

Fixed Deposit Calculator

Your finances take centre-stage when it comes to all your responsibilities. Hence, prioritising the growth and safety of your assets can help you in times of emergencies or when it's time to fulfil your financial goals. Fixed deposit savings can be your prime preference to procure alternate earnings and the investment or savings type you bank on.

However, it is crucial to have an idea of the estimated returns, the tenor you could choose, how much you should save and interest rates to ensure there are no losses. To have an estimate or idea of your potential FD investment, you could take the help of an FD calculator given here.

How Can an FD Calculator Help You?

The fixed deposit calculator is a tool that can help you not only calculate the values surrounding your FD savings but also a tool that harbours many essential benefits to make your decision-making process seamless. Following are the benefits of the FD return calculator to help you understand how it is useful for you.

Interest Rates & Charges

Fixed deposits are one of the most secure forms of investing and saving. Here, you will receive a decided FD interest rate payable by a bank or Non-Banking Financial Company (NBFC) at preferred time intervals. Fixed deposits, hence, are a very easy way to utilise spare funds in a productive and profitable manner since the returns earned through FDs are safe and guaranteed until the date of maturity.

However, before you book your FD, it is essential for you to understand the crux of FD rates, the factors that affect interest on FD, CRISIL and ICRA ratings and taxation on FD interest rates.

Taxation on Fixed Deposit Interest

Fixed deposits in India are entirely taxable since, according to the Income Tax Act of 1961, the returns earned through FD interest rates are considered as alternate income-earning sources. It is added to your gross yearly income and hence, taxes are calculated.

When the annual interest is credited to your FD account, the bank or NBFC will deduct the TDS liable from the interest amount that was earned. Once you reach the point of earning ₹40,000 in returns, you are liable to pay 10% - 20% in taxes. Senior citizens have special provisions that stretch the limit amount to ₹50,000 after which 10% - 20% will be levied on the annual returns.