📖 Understanding Fixed Deposits

Fixed Deposit (FD) is one of India's most popular and safest investment options. Banks and post offices offer FDs with guaranteed returns. You deposit a lump sum amount for a fixed period and earn interest at a predetermined rate.

FD interest rates in India typically range from 3% to 8% depending on the bank and tenure. Senior citizens usually get 0.25% to 0.50% extra interest. Tenure can range from 7 days to 10 years.

The power of compounding makes FDs attractive for long-term savings. Quarterly compounding is most common in Indian banks. Our calculator shows exact maturity amount based on your chosen compounding frequency.

FDs are ideal for risk-averse investors, emergency funds, and short to medium-term goals. Tax-saving FDs with 5-year lock-in qualify for deduction under Section 80C.