FD Calculator
Fixed deposit maturity value and interest with bank-style compounding.
Year-by-year deposit value
| Year | Value | Interest so far |
|---|---|---|
| 1 | ₹1,07,186 | ₹7,186 |
| 2 | ₹1,14,888 | ₹14,888 |
| 3 | ₹1,23,144 | ₹23,144 |
| 4 | ₹1,31,993 | ₹31,993 |
| 5 | ₹1,41,478 | ₹41,478 |
A fixed deposit (FD) is a lump sum you park with a bank or post office for a fixed tenure at a guaranteed interest rate. This FD calculator shows exactly what that deposit grows to — enter the amount, rate and tenure above to see your maturity value, total interest and year-by-year growth instantly.
Indian banks compound FD interest quarterly by default, which is what this calculator assumes — so the maturity value you see here should match your bank's FD receipt. You can switch to monthly, half-yearly or yearly compounding for schemes that use a different frequency.
How is FD maturity calculated?
The compound interest formula behind every FD is: Maturity value = P × (1 + r/n)^(n×t), where P is the deposit amount, r the annual interest rate as a decimal, n the number of compounding periods per year (4 for the quarterly compounding Indian banks use), and t the tenure in years.
For example, ₹1,00,000 at 7% for 5 years with quarterly compounding works out to: r/n = 0.07 ÷ 4 = 0.0175 per quarter, n×t = 20 quarters, so maturity = 1,00,000 × (1.0175)²⁰ = ₹1,41,478. You earn ₹41,478 as interest — noticeably more than simple interest would pay, because every quarter's interest itself starts earning interest.
How to use this calculator
- Set the deposit amount — the lump sum you plan to invest.
- Enter the interest rate your bank or post office is offering for that tenure.
- Pick the tenure in years and watch the maturity value update live.
- Leave compounding on Quarterly for bank FDs; switch it only if your scheme states a different frequency.
- Open the year-by-year table to see the deposit's value at each anniversary — handy when comparing against an RD or SIP over the same period.
FD tips for Indian savers
Ladder your deposits instead of locking everything into one FD: splitting ₹5 lakh into five FDs maturing in consecutive years gives you liquidity every year and lets you reinvest at higher rates if they rise. Breaking an FD early usually costs a 0.5–1% penalty on the applicable rate, so laddering also protects you from that.
Compare the FD against alternatives for your goal. A recurring deposit (RD) suits monthly saving at the same guaranteed rates, while an equity SIP has historically returned more over 7+ year horizons but with market risk. FDs shine for short-term goals and emergency funds — returns are guaranteed, and deposits are insured by DICGC up to ₹5 lakh per bank per depositor. Senior citizens typically get 0.25–0.50% extra on bank FDs, so retirees should always ask for the senior card rate.
Frequently asked questions
How do banks calculate FD interest in India?
Almost all Indian banks compound FD interest quarterly using Maturity = P × (1 + r/4)^(4×t). Post-office time deposits also compound quarterly but pay out annually. This calculator uses the same formula, so its output should match your bank's quote.
Is FD interest taxable? When is TDS deducted?
Yes — FD interest is fully taxable at your income-tax slab rate under 'income from other sources'. Banks deduct TDS at 10% when your interest across the bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens); submit Form 15G/15H if your total income is below the taxable limit to avoid the deduction.
Can I withdraw my FD before maturity?
Yes, most FDs allow premature withdrawal, but the bank pays interest at the rate applicable for the period the money actually stayed, minus a penalty of typically 0.5–1%. Tax-saver FDs (5-year, Section 80C) cannot be broken before maturity at all.
Which is better — FD or RD?
They serve different situations at similar rates: an FD earns more total interest because the entire amount is invested from day one, while an RD lets you invest month by month from salary. If you already have the lump sum, choose an FD; if you are building the corpus gradually, choose an RD.
How safe are fixed deposits?
Bank FDs are among the safest instruments in India. Deposits in scheduled banks are insured by DICGC (an RBI subsidiary) up to ₹5 lakh per depositor per bank, covering principal and interest. Post-office deposits carry a sovereign guarantee with no upper cap.
Do senior citizens get higher FD rates?
Yes. Most banks pay senior citizens 0.25–0.50% above the card rate, and some special schemes pay even more. Seniors also enjoy a higher TDS threshold of ₹50,000 and a dedicated deduction on deposit interest under Section 80TTB.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.