Fixed Deposit (FD) Calculator
A fixed deposit (FD) locks a lump sum with a bank for a set term at a fixed interest rate. This calculator shows the maturity value and the total interest, based on your deposit, rate, term and how often interest is compounded.
Most banks add about 0.50% to the card rate for depositors aged 60 and above.
- Deposit
- Interest
Year-by-year growth
| Year | Interest to date | Balance |
|---|---|---|
| 1 | ₹7,186 | ₹1,07,186 |
| 2 | ₹14,888 | ₹1,14,888 |
| 3 | ₹23,144 | ₹1,23,144 |
| 4 | ₹31,993 | ₹1,31,993 |
| 5 | ₹41,478 | ₹1,41,478 |
How to calculate FD interest
Interest on most FDs is compounded periodically, often quarterly, and paid at maturity for a cumulative deposit. More frequent compounding and longer terms both increase the final amount. The rate is fixed when you open the FD, so the return does not change with the market.
Maturity = P × (1 + r/n)^(n·t)Example. A deposit of ₹1,00,000 at 7% for 5 years, compounded quarterly, matures to about ₹1,41,478, of which roughly ₹41,478 is interest.
Why compounding frequency matters
An FD that compounds quarterly earns slightly more than one that compounds annually at the same rate, because interest starts earning interest sooner. The effect is small at low rates but adds up over long terms.
Senior citizen FD rates
Banks in India add a fixed bonus to the card rate for depositors aged 60 and above, almost universally 0.50 percent, and a further bump for very senior depositors at some banks. It applies to the headline rate, so a 7 percent FD becomes 7.5 percent for the whole term. Over five years on a large deposit that difference is worth more than most people assume, because it compounds.
Cumulative vs payout FDs
A cumulative FD reinvests interest and pays everything at maturity, which is what this calculator models. A non-cumulative FD pays interest out monthly or quarterly instead, so its final lump sum is just the principal.
Frequently asked questions
How is FD maturity amount calculated?
Maturity = P x (1 + r/n)^(n x t), where P is the deposit, r the annual rate as a decimal, n how many times a year interest compounds, and t the term in years. A 1,00,000 deposit at 7% for 5 years compounded quarterly matures at about 1,41,478.
What is the effective annual yield on an FD?
It is what the FD actually returns per year once compounding is counted. A 7% FD compounded quarterly yields 7.19% a year, because each quarter's interest starts earning interest. Two FDs quoting the same rate can yield differently if they compound differently - this is the number to compare.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, and banks deduct TDS at source once annual interest from that bank crosses the prescribed threshold. The threshold and the senior-citizen limit are revised in most Budgets, so check the current figure rather than assuming last year's - and note that TDS is not the final tax, only an advance against it.
What happens if I break an FD early?
The bank recalculates interest at the rate that applied for the period you actually stayed invested, not the rate you booked, and usually applies a penalty of around 0.5 to 1 percent on top. Breaking a 5-year FD after 14 months can therefore pay closer to a 1-year rate minus the penalty. This calculator assumes the deposit is held to maturity.
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