FD Calculator
Find the maturity value and interest on a bank fixed deposit.
How to use the FD calculator
Enter the amount you want to deposit, the interest rate offered by the bank and the tenure in years and months. Choose how often interest is compounded; most banks in India compound fixed deposits quarterly. The calculator shows the maturity value, the interest earned and the effective yearly yield.
The formula
For a cumulative FD, where interest is added to the deposit and paid at maturity, the maturity value is A = P × (1 + r ÷ n)n × t, where P is the deposit, r is the yearly rate as a decimal, n is the number of compounding periods per year and t is the tenure in years. ₹1,00,000 at 7% for 3 years with quarterly compounding grows to about ₹1,23,144.
Why the effective yield is higher than the rate
With quarterly compounding, interest earned in each quarter starts earning interest itself. A 7% rate compounded quarterly gives an effective yearly yield of about 7.19%. Banks sometimes advertise this effective yield as well as the rate, so compare like with like.
Cumulative and payout FDs
In a cumulative FD, interest is reinvested and you receive everything at maturity. In a non-cumulative or payout FD, interest is paid out monthly or quarterly, so it does not compound and the total interest is lower. Payout FDs suit people who need a regular income, such as retirees.
Tax and safety
FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when your interest crosses a yearly threshold; if your total income is below the taxable limit, you can submit Form 15G, or 15H if you are a senior citizen, to the bank. Deposits in each bank are insured by DICGC up to ₹5 lakh per depositor, including interest.
Rates differ between banks and change often, and senior citizens usually get a slightly higher rate. Check the current rate with your bank. This tool is for planning only.
Frequently asked questions
How do banks compound FD interest?
Most banks in India compound FD interest quarterly for cumulative deposits. Choose the option your bank uses.
Is FD interest taxable?
Yes. It is added to your income and taxed at your slab rate. TDS may be deducted when interest crosses the yearly threshold.
Is my FD safe?
Deposits in a bank are insured by DICGC up to ₹5 lakh per depositor per bank, including interest.