How to use the FD calculator
Enter your deposit amount, the interest rate your bank offers, and the tenure in years and months. Choose how often interest is compounded — quarterly is standard for cumulative FDs at most Indian banks. The calculator shows your maturity amount, the interest earned and the effective annual yield.
FD maturity formula
- A — maturity amount
- P — principal deposited
- r — annual interest rate as a decimal (7% = 0.07)
- n — compounding periods per year (4 for quarterly)
- t — tenure in years
Worked example
₹1,00,000 for 1 year at 7% compounded quarterly: A = 1,00,000 × (1 + 0.07/4)^4 = ₹1,07,186. The effective annual yield is 7.19% — slightly higher than the headline rate because of compounding. Over 5 years the same deposit grows to about ₹1,41,478.
Cumulative vs. non-cumulative FDs
A cumulative FD reinvests interest and pays everything at maturity — that's what this calculator models. A non-cumulative FD pays interest out monthly or quarterly, which suits retirees who need regular income, but earns less overall because the interest isn't compounded.
Things to keep in mind
- Tax: interest is taxable at your slab rate every year, even on cumulative FDs where you receive nothing until maturity. Your post-tax return may be well below the headline rate.
- Deposit insurance: DICGC insures deposits up to ₹5 lakh per depositor per bank, including interest.
- Tax-saver FDs have a 5-year lock-in and qualify for Section 80C deduction under the old tax regime.
For a tax-free, government-backed alternative, see the PPF calculator.
Frequently asked questions
How do banks compound FD interest?
Most Indian banks compound fixed deposit interest quarterly for cumulative (reinvestment) deposits. Non-cumulative FDs pay out interest monthly or quarterly instead of compounding it.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS at 10% if your interest from that bank exceeds ₹50,000 a year (₹1,00,000 for senior citizens), unless you submit Form 15G/15H.
Do senior citizens get higher FD rates?
Most banks offer senior citizens an extra 0.25%–0.75% on fixed deposits. Enter the senior citizen rate in the calculator to see the difference.
What happens if I break an FD early?
Premature withdrawal usually attracts a penalty of 0.5%–1% on the applicable rate, and interest is paid at the rate for the period the deposit actually ran.
Last updated: 22 September 2026Suggest an improvement · Report a problem