💰 Investment Details

Typical FD rates: 6.5% - 8.5%
Years
Months
Quarterly compounding is most common for FDs
To calculate real returns after inflation
Tax on FD interest (if applicable)

📈 Results

Maturity Amount
₹1,40,255
Interest Earned
₹40,255
Effective Annual Rate
7.23%
Real Return (Post-Inflation)
1.23%

Breakdown

Principal: ₹1,00,000
Total Interest: ₹40,255
Gross Returns: 40.26%
Tax (if applicable): ₹12,077
Post-tax Amount: ₹1,28,178

💡 Insights & Tips

📊

Smart Tip

With quarterly compounding, you earn 0.23% more than simple annual compounding.

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Goal Comparison

Your investment will grow at 7.23% effective rate, beating typical inflation of 6%.

⏰

Time Impact

Extending tenure by 2 more years could earn an additional ₹23,450 in interest.

ℹ️ About Fixed Deposits

What is a Fixed Deposit?

A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum for a fixed period at a predetermined interest rate. It's one of the safest investment options with guaranteed returns.

Compounding Effect

Interest compounding means earning interest on previously earned interest. Higher compounding frequency (daily/monthly) results in higher effective returns compared to annual compounding.

Tax Implications

FD interest is added to your income and taxed as per your tax slab. TDS is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).