FD Calculator

FD interest is calculated using compound interest formula: A = P(1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency, and t is time in years. Most banks compound quarterly.

In cumulative FD, interest is compounded and paid at maturity, giving higher returns. In non-cumulative FD, interest is paid monthly/quarterly/yearly, suitable for regular income needs.

Yes, FD interest is fully taxable as 'Income from Other Sources'. TDS at 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if not liable.

FD rates vary by bank and tenure. Major banks offer 6-7.5% for regular citizens and 0.25-0.50% extra for senior citizens. Small finance banks may offer higher rates up to 8-9%.

Yes, you can prematurely withdraw FD, but banks charge a penalty of 0.5-1% on the applicable rate. Some banks offer partial withdrawal facility without breaking the entire FD.