What is an FD?
An FD, or fixed deposit, is a safe form of investment. You deposit money into a bank or other financial institution for a certain period and earn interest at a rate already set. FDs offer returns that are assured, making them the best for buyers who are not willing to take risks.
Why invest in a fixed deposit?
Fixed deposits are one of the most common savings instruments because of the following:
- Guaranteed Returns: Interest rate is not subject to variation, hence gain is fixed
- Capital Protection: The amount placed is protected against market fluctuations.
- Flexible Tenure: You may choose a period ranging from few months to years.
- Liquidity Options: Some FDs let you take money out early with only small fines.
- Loan Choice: Your FD can be used as collateral to get a loan whenever you need it.
Types of Fixed Deposits (FDs)
- A regular bank deposit
A regular FD where you put down a big sum for a set amount of time and earn interest.
- Tax saving FD
A 5-year fixed deposit that you can use to claim tax relief under Section 80C of the Income Tax Act.
- Senior Citizen FD
Offers higher loan rates to senior citizens above 60 years of age.
- Convertible Fixed Deposit
It is linked with a savings account so that you can withdraw part of the amount and keep the rest saved.
Fixed Deposits Interest Rate in India
Indian banks and other Indian financial institutions offer varied interest rates on their fixed deposits depending on whether the depositor is a senior citizen or just general deposit, the general economic climate at the time of depositing, and the tenor. Interest rates for simple people, from February 2025, under different banks vary between 2.50% to 9.00% annually depending by the bank and tenor. Here are some of the most well-known banks' latest rates:
- ICICI Bank: It gives senior citizens an annual interest rate of up to 7.85% and the public at large an annual interest rate of up to 7.25%.
- State Bank of India (SBI): It offers interest at per annum of 6.50% to 7.25% for one to ten years.
- Axis Bank: It gives 6.75 percent to 7.75 percent as per the plan and tenure opted for.
- DCB Bank: For 19 to 20 months, it gives 8.00% for regular persons and 8.55% for senior citizens.
It is to be noted that senior citizens generally obtain higher rates of interest – about 0.25% to 0.75% more than the market rates. Still, NBFCs and small finance banks do charge a higher rate of interest than regular banks.
Interest rates usually vary based on market conditions and monetary policy. Therefore, it would be best to obtain the latest interest rates directly from the relevant institutions or their websites before making any investment decisions if interest rates do change.
What is a calculator for a fixed deposit?
An FD calculator is a facility available through online sites, which can help estimate how much your FD investment would amount to when it matures and how much interest you can get on it. This can be used to compare multiple FD plans and then decide which one to choose.
How to Calculate Simple Interest?
SI = P x R x T / 100
Where,
SI = Interest on Simple Loans
P = Amount of the loan
R = Rate of Interest Per Year (%)
T = Time Period (Years)
Who can use this FD calculator?
- Good for People who work and want to save for the short and long run
- For retirees looking for safe and stable ways to make money
- Business owners to protect extra cash in a strict way
- Parents and students should make plans for paying for school.
How to Use the Equirus Wealth FD Calculator?
- Enter the amount you wish to invest, and it is treated as the principal amount.
- Interest Rate – You have to pick the FD interest rate that suits you.
- Select Tenure or the term for the FD
- Select compounding frequency: Annual, Half-yearly, Quarterly, or Monthly
- Click the "Calculate" button to determine the maturity amount and the interest earned.
Why Should You Use an FD calculator?
- Instant results—no math required
- It helps to pick the best FD plan by comparing investments
- More accurate predictions will help you plan your savings more accurately
- Better planning of money can help you make goal-oriented investments.