FD Calculator
Calculate maturity amount and interest earned on your fixed deposit.
Deposit
Interest
Maturity
Effective Annual Rate
| Year | Interest Earned | Total Value |
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What is a Fixed Deposit (FD)?
A Fixed Deposit is a financial instrument offered by banks and non-banking financial companies (NBFCs) where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. FDs are among the safest investment options in India, offering guaranteed returns regardless of market fluctuations. They are ideal for conservative investors who prioritize capital protection over high returns.
How FD Interest is Calculated
FD interest is calculated using the compound interest formula: A = P × (1 + r/n)n×t, where A is the maturity amount, P is the principal deposit, r is the annual interest rate, n is the compounding frequency (4 for quarterly, 12 for monthly), and t is the tenure in years. Most banks compound FD interest on a quarterly basis, though some offer monthly compounding for higher effective yields.
Types of Fixed Deposits
Banks offer several types of FDs to suit different needs. Regular FDs provide a lump sum at maturity. Cumulative FDs reinvest the interest, resulting in a higher maturity amount. Non-cumulative FDs pay interest at regular intervals (monthly, quarterly, or annually) and are suitable for those seeking regular income. Tax-saving FDs have a 5-year lock-in period and offer tax deduction under Section 80C up to ₹1.5 lakh. Senior Citizen FDs offer 0.25-0.50% higher interest rates for depositors aged 60 and above.
Using the FD Calculator
Enter your deposit amount, the annual interest rate offered by your bank, the tenure, and select the compounding frequency to calculate your maturity amount and total interest earned. Our calculator instantly shows you the difference between your initial investment and the maturity value, helping you compare different FD options across banks and tenures.
Factors to Consider Before Opening an FD
Before opening a fixed deposit, compare interest rates across multiple banks—rates can vary by 1-2% between banks. Consider the impact of compounding frequency on your returns; quarterly compounding yields slightly more than annual compounding. Be aware that FD interest is fully taxable under your income tax slab, and TDS of 10% is deducted if interest exceeds ₹40,000 in a year (₹50,000 for senior citizens). Premature withdrawal may attract a penalty of 0.5-1% on the applicable interest rate.
Frequently Asked Questions
FD interest rates vary by bank and tenure. As of 2025, major banks offer 6.5-7.5% for regular FDs and 7-8% for senior citizen FDs. Small finance banks may offer higher rates up to 8.5-9%. The rate depends on the deposit amount, tenure, and the depositor age category.
More frequent compounding leads to slightly higher effective returns. For example, a ₹1 lakh FD at 7% for 5 years yields ₹1,40,255 with annual compounding, ₹1,41,060 with quarterly compounding, and ₹1,41,478 with monthly compounding. Most Indian banks use quarterly compounding by default.
Yes, FD interest is fully taxable under your applicable income tax slab. Banks deduct TDS at 10% if total interest exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Premature withdrawal from an FD is allowed but attracts a penalty of 0.5-1% on the applicable interest rate. The bank will recalculate interest at the rate applicable for the actual deposit period minus the penalty. Some banks offer no-penalty premature withdrawal on specific FD products.