FD Calculator
Find the maturity value of a fixed deposit. Choose the compounding frequency your bank uses, and optionally see what is left after tax.
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How to use this calculator
- Enter deposit amount
- Enter interest rate — The rate your bank offers for this tenure.
- Enter tenure — Use decimals for part years — 0.5 means 6 months.
- Choose compounding — Most Indian bank FDs compound quarterly.
- Enter your income tax rate — FD interest is taxed at your slab rate. Leave at 0 to ignore tax. (optional — leave it as it is if it does not apply)
- Enter expected inflation — Used to show whether the deposit beats inflation. (optional — leave it as it is if it does not apply)
- Read the result — it updates as you type.
The formula used
M = P × (1 + r/n)n×t
- M
- Maturity amount
- P
- Deposit amount
- r
- Annual interest rate as a decimal
- n
- Compounding periods per year (4 for quarterly)
- t
- Tenure in years
This is plain compound interest. Banks quote the annual rate but usually add interest to your balance every quarter, which is why the amount you receive is slightly more than "rate × years" would suggest.
Cumulative vs non-cumulative: this calculator models a cumulative FD, where interest stays in the deposit and compounds. If you take the interest out monthly or quarterly (a non-cumulative FD), there is no compounding — your income is simply P × r ÷ n each period.
Worked example
₹1,00,000 for 5 years at 7%, compounded quarterly.
- Principal (P)₹1,00,000
- Quarterly rate (r/n)0.07 ÷ 4 = 0.0175
- Quarters (n×t)4 × 5 = 20
- (1.0175)20 = 1.414778
- ₹1,00,000 × 1.414778 = ₹1,41,478
- Interest earned = ₹41,478
In the 30% tax bracket you would pay about ₹12,443 tax, leaving roughly ₹1,29,035 — an after-tax rate of about 5.23% a year.
Fixed deposits: safe, simple, and quietly eroded by inflation
A fixed deposit is a loan you make to a bank at an agreed rate for an agreed period. The rate is locked when you open it, which makes an FD the most predictable place to keep money you cannot afford to lose.
The tax point most people miss
FD interest is added to your income and taxed at your slab rate — not at a special lower rate. At 7% interest in the 30% bracket, you effectively earn about 4.9% before inflation. Banks also deduct TDS once interest crosses the threshold, and that TDS is not the final tax if your slab is higher.
Beating inflation is the real test
If inflation runs at 6% and your after-tax return is 4.9%, your money buys slightly less each year even though the balance rises. That is not an argument against FDs — it is an argument for using them for what they are good at: emergency funds, short-term goals, and money you will need on a known date.
Practical points
- Senior citizens usually get 0.25–0.75% extra. Enter that higher rate.
- Breaking early normally costs a penalty of around 0.5–1%, and interest is recalculated at the rate for the period actually held.
- Deposit insurance in India covers up to ₹5 lakh per depositor per bank, including principal and interest.
- Laddering — splitting money across several tenures — gives you access to some of it each year without breaking everything.
Tips and common mistakes
Getting more out of it
- Choose quarterly compounding unless your bank says otherwise — that is the usual convention in India.
- Add your tax rate and your expected inflation. A 7% FD in the 30% bracket often has a negative real return.
Mistakes to avoid
- Comparing the headline FD rate with an equity fund return, when one is guaranteed and the other is not.
- Overlooking that interest is taxed every year as it accrues, not only at maturity.
- Assuming a non-cumulative FD pays the same. If interest is paid out, it never compounds.
Frequently asked questions
How is FD interest calculated?
Almost all Indian banks compound quarterly on a cumulative FD: interest is added to your balance every three months and then earns interest itself. Choose "Quarterly" above unless your bank says otherwise.
Is FD interest taxable?
Yes. It is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% once interest crosses the annual threshold (higher without PAN), and you settle any remaining tax when you file.
What is the difference between cumulative and non-cumulative FDs?
Cumulative FDs keep the interest inside and compound it — that is what this calculator shows. Non-cumulative FDs pay interest out monthly or quarterly, so there is no compounding and the total received is lower.
What happens if I break the FD early?
You usually receive interest at the rate applicable to the period actually completed, minus a penalty of roughly 0.5–1%. Ask your bank for its specific rule before opening a long deposit.
Is an FD better than a debt mutual fund?
An FD gives a guaranteed rate; a debt fund does not, but may be more tax-efficient depending on current rules and your holding period. Compare the after-tax return in both cases rather than the headline rate.
Are FDs completely safe?
Bank deposits are insured up to ₹5 lakh per depositor per bank by DICGC. Corporate FDs offering higher rates are not covered by that insurance and carry real credit risk.
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