Fixed Deposit (FD) – Description

A Fixed Deposit (FD) is one of the most popular and safest investment options in India. In an FD, you invest a lump sum amount for a fixed tenure at a pre-decided interest rate. At the end of the tenure, you receive the principal plus interest, known as the maturity amount. FDs are offered by banks, NBFCs, and post offices. They are ideal for investors who want guaranteed returns with low risk. The interest rate depends on the tenure, deposit amount, and whether the investor is a senior citizen. With the EasyTP FD Calculator, you can instantly calculate:

• Maturity amount
• Interest earned
• Returns based on compounding (yearly, quarterly, monthly)

---

Fixed Deposit (FD) – FAQs

What is a Fixed Deposit (FD)?

A Fixed Deposit is an investment where a lump sum amount is deposited for a fixed period at a fixed interest rate.

How is FD interest calculated?

FD interest is calculated using the compound interest formula, depending on the compounding frequency chosen by the bank.

Is FD safe?

Yes, FD is considered a low-risk investment, especially when done with banks or government-backed institutions.

Can I withdraw FD before maturity?

Yes, premature withdrawal is allowed, but banks may charge a penalty or reduce the interest rate.

Do senior citizens get higher FD interest?

Yes, most banks offer 0.25% to 0.75% extra interest to senior citizens.

Is FD taxable?

Interest earned on FD is taxable as per your income tax slab. TDS may apply if interest exceeds the limit.

---

Recurring Deposit (RD) – Description

A Recurring Deposit (RD) is an investment option where you deposit a fixed amount every month for a specific tenure. RD is best suited for individuals who want to build savings gradually with small monthly investments. In RD, interest is compounded monthly, and the maturity amount depends on:

• Monthly deposit amount
• Interest rate
• Tenure (in months)

RD is ideal for salaried individuals, students, and first-time investors who want disciplined savings without market risk. Using the EasyTP RD Calculator, you can easily find:

• Total investment amount
• Maturity value
• Interest earned over time

---

Recurring Deposit (RD) – FAQs

What is a Recurring Deposit (RD)?

A Recurring Deposit is an investment where you deposit a fixed amount every month for a fixed tenure and earn interest on it.

How is RD maturity calculated?

RD maturity is calculated using monthly compounding interest, considering each installment separately.

Is RD better than FD?

RD is better for monthly savings, while FD is better for lump sum investment. Both serve different financial goals.

Can I miss an RD installment?

Some banks allow missed installments but may charge a penalty or extend the tenure.

Is RD safe?

Yes, RD is a low-risk investment similar to FD, as it is not market-linked.

Do senior citizens get extra interest on RD?

Yes, many banks offer additional interest rates for senior citizens on RD as well.

Is RD interest taxable?

Yes, interest earned on RD is taxable according to your income tax slab.