Which compounding frequency gives the highest FD returns?

Monthly compounding gives the highest effective return for the same nominal rate. For example, 7% compounded monthly yields an effective annual rate of 7.23%, compared to 7.19% for quarterly and 7.12% for half-yearly compounding.

What is effective annual yield in FD?

Effective Annual Yield (EAY) is the actual annual return after accounting for compounding. A 7% FD compounded quarterly has an EAY of approximately 7.19%. This helps compare FDs with different compounding frequencies on equal footing.

Is FD interest taxable?

Yes. FD interest is added to your income and taxed at your applicable slab rate. If interest exceeds ₹40,000 per year (₹50,000 for senior citizens) per bank, TDS at 10% is deducted. Submit Form 15G/15H if your income is below taxable limits.

What is the minimum FD amount in Indian banks?

Most public sector banks have a minimum FD of ₹1,000. Private banks and NBFCs may require ₹5,000-₹10,000. Some small finance banks and NBFCs like Bajaj Finance require a minimum of ₹15,000.

Should I choose cumulative or non-cumulative FD?

Cumulative FD reinvests interest and pays at maturity — suitable for wealth building. Non-cumulative FD pays interest monthly/quarterly — better for regular income needs like retirees. Cumulative FD gives higher overall return due to compounding.

FD Maturity Calculator

Calculate FD maturity value with different compounding options and bank rate comparisons.

FD Details

Principal Amount₹1,00,000

Interest Rate (% p.a.)

Tenure

Compounding Frequency

Maturity Amount

₹1,07,291

Interest Earned

₹7,291

Eff. Annual Yield

7.29%

Bank Rate Comparison

Quarterly compounding • 12 months • Principal ₹1,00,000

SBI

₹1,07,186

7% p.a.

HDFC Bank

₹1,07,291

7.1% p.a.

ICICI Bank

₹1,07,291

7.1% p.a.

Axis Bank

₹1,07,291

7.1% p.a.

Bajaj Finance

₹1,08,137

7.9% p.a.

* Rates are indicative for general FDs. Senior citizen rates are typically 0.25-0.50% higher. Check bank websites for current rates.

FD Maturity Calculator कसरी प्रयोग गर्ने

1
Enter your FD principal amount (the amount you plan to deposit).
2
Enter the annual interest rate offered by your bank.
3
Set the FD tenure in months or years using the toggle.
4
Select the compounding frequency: monthly, quarterly, half-yearly, or yearly.
5
View the maturity amount, total interest earned, and effective annual yield.
6
Scroll down to compare your returns with typical FD rates from leading banks.

FD Maturity Calculator बारेमा

Planning a Fixed Deposit? The FD Maturity Calculator shows you exactly how much your money will grow with any compounding frequency — monthly, quarterly, half-yearly, or yearly — and compares returns across India's top banks.

What You Get

Maturity amount — the total you receive when the FD matures
Interest earned — the profit above your principal
Effective Annual Yield — the true annual return after compounding (EAY)
Bank comparison — side-by-side returns from SBI (7.0%), HDFC Bank (7.1%), ICICI Bank (7.1%), Axis Bank (7.1%), and Bajaj Finance (7.9%)

Compounding Matters

The same 7% interest rate yields different returns depending on how often it compounds. Monthly compounding gives the highest effective return (7.23% EAY), followed by quarterly (7.19%), half-yearly (7.12%), and yearly (7.0%). Use the compounding toggle to compare and pick the best option for your deposit.

FD interest is taxable at your income slab rate. TDS at 10% applies when interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below taxable limits.

FD Maturity Calculator बारेमा बारम्बार सोधिने प्रश्नहरू

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