FD Calculator
Calculate Fixed Deposit maturity amount, interest earned, and effective annual yield for any bank, any rate, and any tenure. Supports quarterly, monthly, half-yearly, annual, and simple interest compounding.
Calculator
Maturity Amount
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Principal Invested
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Interest Earned
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Maturity Amount
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How FD Calculator Works
What is a Fixed Deposit?
A Fixed Deposit (FD) is a savings instrument offered by banks and non-banking financial companies (NBFCs) where you deposit a lump sum for a fixed tenure at a predetermined interest rate. Unlike a savings account, the interest rate is locked at the time of booking and does not change during the tenure — making FDs one of the most predictable and low-risk savings options available.
FDs are held by over 100 million Indians and are the country’s most popular savings instrument. They are ideal for parking funds you won’t need during the tenure, building an emergency corpus, or creating a predictable income stream through interest payouts.
FD Interest Formula
Most Indian banks compound FD interest quarterly. The compound interest formula is:
A = P × (1 + r/n)n × t
Where P is the principal, r is the annual rate as a decimal (rate ÷ 100), n is the compounding frequency per year, and t is the tenure in years.
For simple interest FDs (used in some short-term and corporate deposits):
A = P + P × r × t
Worked Example
₹2,00,000 at 7% p.a., quarterly compounding, 3 years:
- r = 7 ÷ 100 = 0.07
- n = 4 (quarterly)
- t = 3 years
- A = 2,00,000 × (1 + 0.07/4)4×3 = 2,00,000 × (1.0175)12
- A ≈ ₹2,45,997
- Interest earned = 2,45,997 − 2,00,000 = ₹45,997
- Effective Annual Rate (EAR) = (1.0175)4 − 1 ≈ 7.19%
The EAR of 7.19% is higher than the nominal 7% rate because of quarterly compounding. The more frequently interest is compounded, the higher the effective return.
How Compounding Frequency Affects Your Returns
| Frequency | ₹1,00,000 at 7% for 5 Years | EAR |
|---|---|---|
| Simple Interest | ₹1,35,000 | 7.00% |
| Annual | ₹1,40,255 | 7.00% |
| Half-Yearly | ₹1,41,060 | 7.12% |
| Quarterly | ₹1,41,478 | 7.19% |
| Monthly | ₹1,41,763 | 7.23% |
The difference between simple interest and monthly compounding on ₹1 lakh over 5 years is approximately ₹6,763 — or about 6.8% more money. Always prefer higher compounding frequency when comparing FDs of identical interest rates.
FD Interest Rates in India (2026)
| Bank | General (1–3 years) | Senior Citizen |
|---|---|---|
| SBI | 6.5% – 7.1% | 7.0% – 7.6% |
| HDFC Bank | 6.6% – 7.25% | 7.1% – 7.75% |
| ICICI Bank | 6.7% – 7.2% | 7.2% – 7.7% |
| Axis Bank | 6.7% – 7.1% | 7.2% – 7.6% |
| Kotak Mahindra | 6.2% – 7.25% | 6.7% – 7.75% |
| Small Finance Banks | Up to 9.0%+ | Up to 9.5%+ |
Rates change when the RBI revises the repo rate. Always check with your bank for current rates before booking. Use the calculator above to compare maturity amounts across different rates.
TDS on FD Interest
Interest earned on FDs is fully taxable as “Income from Other Sources”. Banks deduct Tax Deducted at Source (TDS) at 10% when the total FD interest from a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G (Form 15H for senior citizens) at your bank to avoid TDS deduction.
FD vs SIP — Which is Better?
FDs provide guaranteed returns regardless of market conditions, making them suitable for capital preservation. SIPs invest in mutual funds (typically equity), which can deliver higher returns over long horizons but are subject to market volatility. A general rule of thumb: use FDs for money you need within 1–3 years, and SIPs for goals 5+ years away. Explore the SIP Calculator, or read the full SIP vs FD comparison with worked examples.
Compare FD with Other Instruments
Deciding between deposit products? See FD vs RD for lump-sum versus monthly saving, and PPF vs FD for how tax-free PPF changes the mathematics for long-term savers.
Accuracy & Sources
Last reviewed: July 2026. Formula source: Compound interest formula — standard for Indian bank Fixed Deposits. All calculations run in your browser. No data is sent to any server.
Frequently Asked Questions
Most Indian banks calculate FD interest using quarterly compounding: A = P × (1 + r/n)^(n × t), where P is the principal, r is the annual rate as a decimal, n is the compounding frequency (4 for quarterly), and t is the tenure in years. For example, ₹1,00,000 at 7% quarterly for 2 years gives ₹1,14,888. Use the calculator above to get instant results for any combination.
At 7% p.a. with quarterly compounding, ₹1,00,000 for 1 year grows to approximately ₹1,07,186. Interest earned: ₹7,186. Effective Annual Rate: 7.19%. With simple interest, the maturity is exactly ₹1,07,000. The difference is due to compounding — quarterly compounding adds an extra ₹186 versus simple interest.
The Effective Annual Rate (EAR) is the true annual return after accounting for compounding. For a 7% FD compounded quarterly, the EAR is (1 + 0.07/4)^4 − 1 = 7.19%. This means you earn 7.19% effective return, even though the stated rate is 7%. The higher the compounding frequency, the higher the EAR relative to the nominal rate.
Most Indian banks offer FDs for tenures ranging from 7 days to 10 years. The most popular tenures are 6 months, 1 year, 2 years, 3 years, and 5 years. Tax-saving FDs under Section 80C have a mandatory 5-year lock-in period. This calculator supports tenures from 1 month to 10 years (120 months).
Yes. FD interest is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. Banks deduct TDS at 10% when aggregate FD interest from a single bank exceeds ₹40,000 per year (₹50,000 for senior citizens). To avoid TDS if your income is below the taxable limit, submit Form 15G (or Form 15H for senior citizens) to your bank at the start of the financial year.
The more frequently interest is compounded, the higher the maturity amount. On ₹1,00,000 at 7% for 5 years: Simple interest gives ₹1,35,000; Annual gives ₹1,40,255; Quarterly gives ₹1,41,478; Monthly gives ₹1,41,763. Monthly compounding earns about ₹6,763 more than simple interest on the same deposit — a 6.8% improvement. When comparing two FDs at the same rate, always prefer the one with higher compounding frequency.
Use FDs for capital preservation and short-term goals (1–3 years): returns are guaranteed and unaffected by markets. Use SIPs (Systematic Investment Plans in mutual funds) for long-term wealth creation (5+ years): equity SIPs historically deliver 10–15% annual returns but carry market risk. A balanced approach: keep 3–6 months of expenses in FD as an emergency fund, and route long-term savings through SIPs for higher growth potential. Use the SIP Calculator to compare projected SIP returns against your FD maturity amount.