Fixed Deposit (FD) Calculator

Calculate maturity amount and interest earned on your Fixed Deposit

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Frequently Asked Questions

A Fixed Deposit (FD) is a financial instrument offered by banks where you deposit a lump sum for a fixed tenure at a predetermined interest rate. The interest is compounded at regular intervals (quarterly, monthly, etc.) and paid out at maturity. FDs are considered one of the safest investment options as they are not affected by market fluctuations.

FD interest is calculated using compound interest: A = P × (1 + r/n)nt
Where P = Principal, r = Annual rate (decimal), n = Compounding frequency per year, t = Time in years.
Most banks in India compound FD interest quarterly (n=4). Total interest = A − P.

Most Indian banks compound FD interest quarterly. Some banks (especially for tax-saving FDs and small finance banks) may compound monthly or annually. You can select the compounding frequency in this calculator to match your bank's terms. Quarterly compounding is the most common.

Yes. FD interest is fully taxable as "Income from Other Sources" in India. TDS (Tax Deducted at Source) at 10% is deducted if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). If your income is below the taxable limit, submit Form 15G/15H to avoid TDS deduction.

In a Cumulative FD, interest is compounded and paid at maturity along with the principal. This calculator models cumulative FD — ideal for wealth accumulation. In a Non-Cumulative FD, interest is paid out periodically (monthly, quarterly, or annually), reducing the compounding benefit. Non-cumulative FDs are preferred for regular income needs.

Yes, most FDs allow premature withdrawal, but banks typically charge a penalty of 0.5–1% on the applicable interest rate. The actual interest earned will be lower than the projected amount in this calculator. Always check your bank's premature withdrawal policy before investing.

The Effective Annual Rate (EAR) for an FD accounts for compounding within the year: EAR = (1 + r/n)n − 1. For example, a 7% FD compounded quarterly has an EAR of approximately 7.19%. The EAR lets you compare FDs with different compounding frequencies on equal terms.

Tips to maximise FD returns: (1) Choose higher compounding frequency (monthly > quarterly > annually). (2) Use FD laddering — split your investment across multiple FDs with different tenures. (3) Look for small finance banks that offer higher interest rates. (4) Reinvest matured FDs immediately to maintain compounding. (5) Senior citizens typically get 0.25–0.50% extra interest.

FDs generally offer higher interest rates than regular savings accounts — typically 1–4% more per year in India. However, savings accounts offer full liquidity (withdraw anytime), while FDs lock funds for a fixed tenure with penalties for early exit. For money you won't need for 6+ months, an FD is almost always the better choice. For day-to-day reserves, keep funds in a savings account.

If you withdraw an FD before maturity, banks typically pay interest at the rate applicable for the actual holding period minus a penalty of 0.5–1%. For example, if your FD was booked at 7% for 3 years but you break it after 1 year (when the 1-year rate was 6%), you would earn approximately 5–5.5% for that year. To avoid this, consider laddering FDs across short, medium, and long tenures so you always have one maturing soon.

About This FD Calculator

This free Fixed Deposit calculator helps you estimate the maturity amount and total interest earned on your bank FD. Enter the deposit amount, annual interest rate, tenure (in years or months), and compounding frequency to instantly see your returns and a year-by-year growth table.

Fixed Deposits are one of the most popular savings instruments globally due to their guaranteed returns and low risk. Whether you're investing for a short tenure of 3 months or a long tenure of 10 years, understanding your FD returns in advance helps you plan your finances better.

When to use this calculator

  • Comparing FD interest rates across different banks
  • Planning lump sum investments for a fixed tenure
  • Understanding the impact of quarterly vs monthly compounding
  • Estimating tax-saving FD (80C) returns for 5-year lock-in

Standards & References

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