FD interest rates calculator is used to calculate the interest and the total amount that the FD holder will receive on maturity. The FD matures when the FD tenure ends. Before going into the details of fd interest rates calculator, let’s know the basics of a fixed deposit.
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The banks and non-banking financial companies (NBFC) offer investment instruments known as fixed deposit or FD. It is a type of term deposit in which you are can deposit money for a higher interest rate as compared to a savings account.
The money can be invested for a fixed term ranging between 7 days to 10 years at a fixed interest rate. You can earn interest on fixed deposits as per the applicable terms and conditions. There are two options to get FD interest. You can get it credited to your account at regular intervals or you can open a recurring deposit account and get the interest at the time of FD maturity.
Once you invest the money in an FD, you will receive the maturity amount at the end of the tenure. It is important for you to know that after locking the amount for a fixed tenure, you cannot withdraw the money before maturity. However, if you wish to withdraw it then you will have to pay a penalty.
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The several features of fixed deposit are mentioned below:
There are two types of fixed deposits are available i.e. cumulative FDs and non-cumulative FDs.
Here are several advantages of investing in fixed deposit:
Do you know that the interest received from fixed deposits is taxable? Yes, ranging from 0 per cent to 30 per cent, the tax is deducted at source on fixed deposit. The TDS is deducted on the basis of investor’s income tax bracket.
If you earn interest more than Rs. 10,000 in a year, then approximately 10 per cent TDS will be deducted by the bank. For this deduction, you must submit a copy of your PAN card. In case you don’t provide your PAN details, then 20 per cent TDS will be deducted. However, you can claim the deducted TDS if your total income is less than the minimum tax slab of 10 per cent.
If you do not fall in the income tax bracket, you can submit Form 15G to your bank in order to avoid the tax deduction.
The senior citizens can submit Form 15H in order to avoid the tax deduction. If you fall in the tax bracket that is higher (20-30 per cent) then you will have to pay extra tax which will be over and above the deducted TDS.
Fixed deposit is an ideal investment option for all age groups. It offers good returns with minimal exposure to risk. The banks that have a high credit rating have a consistent stability. As a result, they are better to opt for fixed deposits.
To get payouts on a monthly basis, you can opt for a non-cumulative fixed deposit. Also, you must ensure that the rate of interest is not too low. Investment experts recommend using tools such as FD interest rates calculator. It is easily available online and can be used to know the fixed deposit interest rates (According to the Income Tax Act, 1961, the tax is deducted at source from fixed deposit interest.) in a matter of a few clicks.
An FD interest rates calculator is a tool that is available for calculating the returns offered by a fixed deposit. By entering a few basic details, you will be able to calculate the maturity amount of a fixed deposit. It is to be noted that the maturity amount varies with the amount of deposit, type of deposit, tenure and the type of customer.
You can follow the below-given steps in order to use the FD Calculator.
The result will be displayed as per your input.
Here is the formula for fixed deposit calculation:
A = P (1 + r/4/100) ^ (4*n)
A = P (1 + r/25)4n
Here, A stands for the amount on maturity
P stands for the amount deposited
n stands for the frequency of compounded interest
By using FD interest rates calculator you can easily plan your investment without any hassle.
Following are the factors affecting the FD interest:
The existing customers and senior citizens are offered a higher rate of interest.
Today, there are numerous investment options available that give you the freedom to accomplish your investment goals. Apart from the fixed deposit scheme, you can consider the investment options mentioned below.
While immediate annuity provides income on a regular basis soon after making the lump sum payment, deferred annuity offers payment after a predefined fixed tenure. There are several charges involved including surrender charges and commission fees. Also, the plan does not provide any tax benefits*.
Before you zero down on an investment option, make sure you have the clarity about the offered returns and applicable terms and conditions. Having a clear understanding will leave no room for any confusion or assumption.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
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