A guaranteed, locked-in return
An FD trades flexibility for certainty — the rate and maturity value are known up front. For a regular monthly-investment alternative instead of a lump sum, see the SIP Calculator.
Frequently asked questions
What is a Fixed Deposit?
A lump sum locked with a bank for a fixed term at a fixed interest rate — the same idea as a Certificate of Deposit, compounding over the term in exchange for giving up early access.
What happens on premature withdrawal?
Most banks charge a penalty — typically a reduced interest rate — for withdrawing before maturity. Only lock in what you won't need before the term ends.
Is the rate compounded monthly, quarterly or annually?
This uses monthly compounding for consistency with the rest of this site. Your bank may compound quarterly, which can produce a very slightly different maturity value.
Last updated: June 2026