How to use the fd calculator
- Enter the deposit amount.
- Enter the interest rate and tenure in years.
- Read the maturity amount and interest earned.
About this tool
Enter the deposit amount, interest rate and tenure to see the maturity value and the interest earned. Most Indian banks compound FD interest quarterly, and that is the method used here. Your bank may round slightly differently, and FD interest is taxable at your slab rate.
How FD interest is calculated
Maturity = P × (1 + r ÷ 4)^(4 × t), where P is the deposit, r is the yearly rate as a decimal, and t is the tenure in years. Banks usually compound FD interest every quarter, which is the cumulative option this calculator models.
Example: ₹1,00,000 at 7%
| Tenure | Maturity amount |
|---|---|
| 3 years | ₹1,23,144 |
| 5 years | ₹1,41,478 |
| 10 years | ₹2,00,160 |
Compounding frequency matters a little. The same 5-year deposit with yearly compounding would reach about ₹1,40,255, so quarterly compounding earns about ₹1,223 more.
Tax on FD interest
FD interest is added to your income and taxed at your slab rate every year, even if you do not receive it until maturity. Banks deduct TDS when interest in a year crosses a threshold, which is currently ₹50,000 for most people and ₹1 lakh for senior citizens. These limits can change, so check the latest rules. If your total income is below the taxable limit you can submit Form 15G or 15H to avoid TDS.
Cumulative or payout, and early withdrawal
- Cumulative FDs reinvest the interest and pay everything at maturity. This calculator shows that option.
- Payout FDs pay interest monthly, quarterly or yearly, so the principal does not grow.
- Withdrawing early usually costs a penalty of around 0.5% to 1% on the rate, so match the tenure to when you will need the money.
- Tax-saver FDs have a 5-year lock-in and qualify for Section 80C under the old regime.
Frequently asked questions
How is FD interest compounded?
Most Indian banks compound quarterly. The formula is A = P × (1 + r/4)^(4t).
Is FD interest taxable?
Yes, it is added to your income and taxed at your slab rate. Banks deduct TDS above a yearly interest threshold.
Will my bank match this number?
It should be close. Some banks use different compounding or day-count rules.
Does the calculator include tax?
No. The maturity value is before tax. Deduct the tax on interest at your slab rate to see your real gain.
FD or PPF?
PPF interest is tax-free but locked in for 15 years and capped at ₹1.5 lakh a year. An FD is flexible, but its interest is taxable.