FD Calculator — Fixed Deposit Maturity & Interest
FD maturity value and interest, at any compounding frequency.
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The Compound Interest Formula Behind Your FD Maturity
Maturity is calculated as Maturity = P × (1 + r/f)^(f × t), where P is your deposit, r the annual interest rate, f the compounding frequency per year, and t the tenure in years. Indian banks almost universally compound cumulative FDs quarterly (f = 4), which is this calculator's default — the frequency selector lets you switch to monthly or annual if your specific scheme compounds differently.
Why the Effective Yield Is Always Above the Quoted Rate
Because interest itself earns interest at each compounding date rather than only at maturity, the effective annual yield on a cumulative FD always runs slightly higher than the nominal rate printed on the deposit receipt — a 7% FD compounded quarterly effectively yields close to 7.19% by maturity. This calculator shows both the interest earned and the total maturity value so the gap between nominal rate and real return is visible rather than buried in the arithmetic.
Cumulative FDs vs Payout FDs — Which This Calculator Models
A cumulative FD reinvests every interest payment back into the principal and pays everything out in one lump sum at maturity — the scenario this calculator projects. A non-cumulative FD instead pays interest out monthly or quarterly as income, which means the principal never grows and the periodic payout is simple, not compound, interest per period. Check your deposit receipt to confirm which type you hold before comparing it against this projection.
What is a fixed deposit and how does the maths work?
A Fixed Deposit (FD) locks a lumpsum with a bank for a fixed tenure at a guaranteed interest rate — the most widely held savings instrument in India. This calculator uses the compound interest formula Maturity = P × (1 + r/f)^(f × t), where P is your deposit, r the annual rate, f the compounding frequency, and t the tenure in years. Indian banks almost universally compound cumulative FDs quarterly, which is the calculator's default; the frequency selector lets you match monthly or annual schemes too. Because interest earns interest each quarter, the effective annual yield is always slightly above the quoted rate — a 7% FD compounded quarterly effectively yields about 7.19%.
Choosing tenure and rate: what actually moves the needle
FD rates in India vary by bank, tenure bucket, and depositor category — senior citizens typically earn 0.25–0.50% extra, and small finance banks often quote higher than large PSU banks for the same tenure. Rates also shift with RBI policy cycles, so a rate that looks ordinary today may be worth locking when the cycle turns. Enter the exact rate from your bank's current rate card rather than an assumption, and use the tenure slider to compare buckets: banks frequently pay disproportionately more for specific special-tenure deposits (such as 400-day schemes) than for round-year ones.
Tax, TDS, and keeping your FD safe
FD interest is fully taxable at your income slab, and banks deduct 10% TDS once your annual interest crosses ₹50,000 (₹1 lakh for senior citizens). If your total income is below the taxable limit, submitting Form 15G (or 15H for seniors) stops the deduction at source. On safety: DICGC insurance covers up to ₹5 lakh per depositor per bank, principal plus interest combined — so splitting a large corpus across two or three banks keeps every rupee insured. For goals where you deposit monthly instead of a lumpsum, compare with our RD calculator; for tax-free long-horizon compounding, see the PPF calculator.
Frequently asked questions
How is FD interest calculated?
We use compound interest: Maturity = P × (1 + r/f)^(f × t), where P is your deposit, r the annual rate, f the compounding frequency, and t the tenure in years. Most Indian banks compound FD interest quarterly, which is this calculator's default.
Which compounding frequency should I choose?
Quarterly is the standard for almost all Indian bank FDs. Some corporate deposits and cumulative schemes compound monthly or annually — check your deposit receipt. More frequent compounding gives a slightly higher maturity for the same quoted rate.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS if interest exceeds ₹50,000 in a year (₹1 lakh for senior citizens, FY 2025-26 onwards). Submit Form 15G/15H if your total income is below the taxable limit.
What is the difference between cumulative and non-cumulative FD?
Cumulative FDs reinvest the interest and pay everything at maturity — that is what this calculator models. Non-cumulative FDs pay interest out monthly or quarterly, so your principal never grows; the payout equals simple interest per period.
Are bank FDs safe?
Deposits in scheduled banks are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest. Spreading large amounts across banks keeps every rupee within the insured limit.