Estimate the maturity value and interest on a bank or corporate fixed deposit. Choose how often interest compounds — most banks use quarterly compounding.
Illustrative only and before TDS / tax. Interest is fully taxable at your slab rate. Not investment advice.
Cumulative FDs reinvest the interest, so it compounds. The maturity value is:
M = P × (1 + r ÷ f)f × n
where P is the principal, r is the annual rate, f is the number of times interest compounds per year, and n is the tenure in years. More frequent compounding gives a slightly higher maturity value.
FD interest is added to your income and taxed at your slab rate; banks deduct TDS once interest crosses ₹40,000 a year (₹50,000 for senior citizens). After tax and inflation, the real return on an FD is often low — which is why FDs belong in the stability layer of a portfolio, not the growth engine.
Use FDs for your emergency fund and near-term goals where capital safety matters more than growth. For long-term goals, equity-oriented mutual funds have historically outpaced FDs. We help you ladder FDs for liquidity and yield.
We'll place the right amount in FDs and the rest where it can compound.
ARTHUM