A fixed deposit (FD) is one of the most popular ways to save in India. You deposit a lump sum with a bank or NBFC for a fixed period at a fixed rate of interest. Most banks add interest to your deposit every quarter, so the interest itself starts earning interest. This calculator shows exactly how much you will receive at maturity.
How to use the FD calculator
- Enter the deposit amount.
- Enter the yearly interest rate offered by your bank.
- Choose the tenure in years (use 0.5 for six months, 1.5 for eighteen months and so on).
- Choose how often interest is compounded. Most banks compound quarterly.
The calculator shows the maturity amount and total interest. The year-wise breakdown shows the balance at the end of every year.
FD formula
A = P × (1 + r ÷ n)^(n × t)- A = maturity amount
- P = deposit amount
- r = yearly interest rate ÷ 100
- n = number of times interest is compounded per year (4 for quarterly)
- t = tenure in years
Example
You deposit ₹1,00,000 for 5 years at 7% with quarterly compounding.
- A = 1,00,000 × (1 + 0.07 ÷ 4)^(4 × 5)
- Maturity amount = ₹1,41,478
- Interest earned = ₹41,478
How compounding frequency changes the result
₹1,00,000 at 7% for 5 years:
| Compounding | Maturity amount |
|---|---|
| Yearly | ₹1,40,255 |
| Half-yearly | ₹1,41,060 |
| Quarterly | ₹1,41,478 |
| Monthly | ₹1,41,763 |
The more often interest is added, the more you earn, but the difference is small. The interest rate matters far more.
Things to know before you book an FD
- FD interest is taxable. It is added to your income and taxed at your slab rate.
- TDS may be deducted if your interest from one bank crosses the yearly limit (₹50,000, or ₹1,00,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 121, which replaced Forms 15G and 15H from April 2026, to avoid TDS. Check the amount with the TDS calculator.
- Senior citizens usually get a higher rate, often 0.25% to 0.50% more.
- Breaking an FD early usually means a penalty, often a lower interest rate for the period the money actually stayed.
- Deposit insurance: DICGC insures deposits up to ₹5 lakh per depositor per bank, including interest.
- Cumulative vs payout FD: this calculator is for a cumulative FD, where interest is added back to the deposit. In a payout FD, interest is paid to you every month or quarter instead, so the maturity amount is just your deposit.
FAQ
How is FD interest calculated in India?
Most banks use quarterly compounding. Interest is calculated every three months and added to your deposit, and the next quarter's interest is calculated on the higher amount.
Is FD interest taxable?
Yes. FD interest is fully taxable as "income from other sources" at your income tax slab rate, whether you receive it or it is reinvested.
What happens if I withdraw my FD before maturity?
Most banks allow premature withdrawal with a penalty, usually by paying a rate 0.5% to 1% lower than the rate for the period you actually held the deposit. Tax-saver FDs cannot be broken during their 5-year lock-in.
Is my money in an FD safe?
Deposits in banks are insured by DICGC up to ₹5 lakh per depositor per bank. For amounts above that, you can spread deposits across banks.
FD or RD: which should I choose?
Choose an FD if you already have a lump sum. Choose a recurring deposit if you want to save a fixed amount every month. See the RD calculator.