FD Calculator
Calculate the maturity amount and interest earned on a fixed deposit with quarterly compounding — the Indian banking standard.
Principal
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Interest
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Maturity
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How this FD calculator works
Enter your deposit amount, the bank's annual interest rate, and the tenure. The calculator compounds interest quarterly — A = P × (1 + r/4)4t — and shows your maturity value split into principal and interest earned.
Where FDs fit in your plan
- Emergency fund & short-term goals: FDs are ideal — capital is safe and returns are predictable.
- Regular income: senior citizens often use non-cumulative FDs for monthly interest payouts.
- Long-term wealth: FDs usually lag equity and even inflation after tax — don't park decades-long money here.
A tax note
Remember that FD interest is taxed at your slab rate. A 7% FD effectively yields about 4.9% after tax in the 30% bracket — compare that against debt funds and small-savings schemes before locking in large sums.
Frequently Asked Questions
How is FD maturity calculated?
Most banks compound fixed deposit interest quarterly. The maturity value is A = P × (1 + r/4)^(4×t), where P is the principal, r the annual rate, and t the tenure in years. This calculator uses quarterly compounding, the Indian banking default.
Are FD returns guaranteed?
FD interest rates are fixed at booking and the principal is contractually returned, so returns are predictable. Deposits up to ₹5 lakh per bank are insured by DICGC. However, returns may not beat inflation after tax, which is the main risk for long-term wealth.
How is FD interest taxed?
FD interest is fully taxable at your income-tax slab rate and is added to 'income from other sources'. Banks deduct 10% TDS if interest exceeds ₹40,000 a year (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit.
Do senior citizens get higher FD rates?
Yes. Most banks offer senior citizens an extra 0.25%–0.75% over the standard rate. Some also offer special senior-citizen schemes with even higher rates.
What is the difference between cumulative and non-cumulative FDs?
In a cumulative FD, interest compounds and is paid at maturity (what this calculator shows). In a non-cumulative FD, interest is paid out monthly/quarterly and does not compound — useful for regular income.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.