About the FD Calculator
A fixed deposit (FD) pays a fixed rate of interest on a sum of money kept with a bank, NBFC or post office for a fixed period. This FD calculator shows the maturity amount and the interest earned on a cumulative deposit, where interest is added back to the deposit and paid at the end, for the rate, tenure and compounding frequency you select.
Savers use it to compare rates offered by different banks, to choose between tenures, and to see what a deposit will be worth before committing money. Business owners also use it to estimate the return on surplus funds, or on deposits kept as margin money or security with a bank. Because the rate is fixed at the outset, the estimate is usually very close to what the bank pays.
The result depends on the principal, the interest rate, the tenure and how often interest is compounded. Most Indian banks compound FD interest quarterly, which is why that is the default here. More frequent compounding gives a slightly higher effective yield for the same quoted rate. Senior citizens usually receive a somewhat higher rate, and interest is taxable, so the post-tax return is lower than the figure shown.
How to use it
- 1Enter the deposit amount and the annual interest rate offered by the bank.
- 2Enter the tenure in years and any extra months.
- 3Keep compounding at quarterly unless your bank states a different frequency.
- 4Read the maturity amount, the interest earned and the effective annual yield.
How this is calculated
A = P × (1 + r ÷ n)^(n × t) P = deposit, r = annual interest rate ÷ 100, n = compounding periods in a year (4 for quarterly), t = tenure in years, with extra months added as a fraction of a year. Interest earned = A − P. Effective annual yield = (1 + r ÷ n)^n − 1.
Frequently asked questions
How is FD interest calculated in India?
For cumulative deposits most banks compound interest every quarter: the interest for each quarter is added to the principal and earns interest in the following quarters. The calculator uses the standard compound interest formula with four compounding periods a year. Very short deposits, typically under six months, are often paid simple interest instead.
Do senior citizens get a higher FD rate?
Usually, yes. Most banks offer depositors aged 60 and above an additional rate, commonly around 0.25% to 0.75% over the regular card rate, and some offer more for very senior citizens. The exact premium varies by bank and tenure, so add your bank's figure to the interest rate field to see the result.
Is FD interest taxable, and when is TDS deducted?
FD interest is added to your income and taxed at your slab rate. Banks deduct tax at source when the interest paid in a financial year goes above the prevailing threshold, which is higher for senior citizens and is revised from time to time. Depositors whose total income is below the taxable limit can submit the prescribed self-declaration to avoid TDS.
What happens if I break my FD before maturity?
Most banks allow premature withdrawal but pay a lower rate: typically the rate applicable for the period the deposit actually ran, less a penalty. Tax-saving FDs carry a five-year lock-in and cannot be closed early. Check the bank's terms before booking, particularly if you may need the money at short notice.
What is the difference between a cumulative and a non-cumulative FD?
In a cumulative FD the interest is reinvested and paid with the principal at maturity, so you earn interest on interest. In a non-cumulative FD the interest is paid out monthly, quarterly or annually, which suits people who need regular income. This calculator shows the cumulative option.