Maturity value of a bank fixed deposit.
Estimate maturity returns on bank fixed deposits with quarterly compounding. Compare interest earnings across deposit tenures.
Where: A is final maturity amount; P is deposit principal; r is annual interest rate; and t is tenure in years.
Fixed Deposits carry fixed interest rates locked at account booking. Deposits up to ₹5 Lakhs per bank are insured by DICGC, shielding capital from market volatility.
Cumulative FDs reinvest quarterly interest until final maturity to maximize compounding, while non-cumulative FDs payout monthly or quarterly income to depositors.
5-Year Tax-Saver FDs qualify for tax deductions up to ₹1.5 Lakhs under Section 80C, though maturity interest remains taxable as per individual income slabs.
Yes, banks deduct TDS at 10% if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens) unless Form 15G/15H is submitted.
Premature withdrawal is allowed for standard FDs subject to a nominal penalty (usually 0.5% - 1% interest reduction). Tax-saver FDs cannot be broken before 5 years.
Yes, most Indian banks offer an additional 0.50% to 0.75% interest rate bonus to senior citizen depositors.