- You deposit
- ₹1,00,000
- Interest earned
- ₹41,478
- Worth in today’s money
- ₹1,05,720
Year-by-year breakdown
| After | Deposit | Interest so far | Total value |
|---|
What is an FD calculator?
An FD (Fixed Deposit) calculator shows how much your deposit will be worth at maturity, or how much interest you will receive regularly, based on the amount, interest rate, and tenure. Instead of working through compound interest by hand, you get an exact estimate in seconds and can compare different banks, tenures, and payout options before you invest.
How to use this calculator
- Choose when you want the interest: At maturity, Monthly, or Quarterly.
- Enter your deposit amount, or tap one of the quick amounts.
- Enter the interest rate your bank offers for your chosen tenure.
- Set the tenure in years and months.
- Turn on Senior citizen if you are 60 or older, to include the extra rate many banks offer.
Results update instantly. Open the year-by-year breakdown to see how your deposit grows over time.
How FD maturity is calculated
Most Indian banks compound cumulative FD interest every quarter. The maturity amount is calculated with this formula:
A is the maturity amount, P is your deposit, r is the yearly interest rate in percent, and t is the tenure in years. For deposits shorter than six months, banks usually pay simple interest instead: A = P × (1 + r × t ÷ 100).
Example
- Deposit
- ₹1,00,000
- Interest rate
- 7% a year
- Tenure
- 5 years
- Interest earned
- ₹41,478
- Maturity amount
- ₹1,41,478
- Effective yield
- 7.19% a year
Because interest is added to your deposit every quarter, you earn interest on your interest. That is why the effective yearly yield of 7.19% is higher than the quoted rate of 7%.
Cumulative vs payout FD
In a cumulative FD, interest is reinvested and you receive everything at maturity. This gives the highest final amount because of compounding. In a payout FD, interest is paid to your bank account every month or quarter, and your original deposit is returned at maturity. Payout FDs suit retirees and anyone who wants a steady income, while cumulative FDs suit people saving for a future goal.
Things to know before you invest
- Tax on interest. FD interest is added to your income and taxed at your slab rate.
- TDS. Banks deduct tax at source if your yearly FD interest crosses a set limit. If your total income is below the taxable limit, you can submit Form 15G (or Form 15H if you are a senior citizen) to avoid TDS.
- Premature withdrawal. Breaking an FD early usually means a penalty, often a lower interest rate than originally agreed.
- Deposit insurance. Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including interest.
- Tax-saving FD. A 5-year tax-saving FD can be claimed under Section 80C under the old tax regime, but it cannot be withdrawn early.
Frequently asked questions
Is the FD maturity amount shown here exact?
It is a close estimate based on quarterly compounding, which most Indian banks use. Your bank’s final figure may differ slightly due to its rounding method, day count, or tenure in days.
How much extra interest do senior citizens get?
Many banks offer senior citizens around 0.25% to 0.75% more than the regular rate. This calculator adds 0.50% when you switch on the senior citizen option, so check your bank’s actual rate.
Which is better, cumulative or monthly payout FD?
A cumulative FD gives a higher total return because interest compounds. A monthly or quarterly payout FD is better if you need regular income from your savings.
Is FD interest taxable?
Yes. FD interest is taxed as income at your slab rate, and banks may deduct TDS if your yearly interest crosses the set limit. You can submit Form 15G or 15H if you are eligible.
Can I withdraw my FD before maturity?
Most regular FDs allow early withdrawal with a penalty, usually a reduced interest rate. Tax-saving FDs have a 5-year lock-in and cannot be withdrawn early.
Is my money safe in a bank FD?
Deposits in banks covered by DICGC are insured up to ₹5 lakh per depositor per bank, including interest. Spreading large amounts across banks can keep more of your money covered.
Disclaimer: This calculator and content are for information only and are not financial advice. Interest rates, tax rules, and bank policies change over time. Confirm the current rate and terms with your bank before investing.