How is FD interest calculated?

Most banks compound FD interest quarterly using M = P × (1 + r/4)^(4n). Some offer simple interest for short tenures.

Is FD interest taxable?

Yes, FD interest is added to your income and taxed at your slab rate. Banks deduct TDS if interest exceeds ₹40,000 (₹50,000 for seniors) a year.

Are fixed deposits safe?

FDs are among the safest options; deposits up to ₹5 lakh per bank are insured by DICGC.

Can I break an FD early?

Yes, but premature withdrawal usually incurs a small penalty (0.5–1% lower rate).

Deposits

FD Calculator

Estimate your fixed deposit maturity value and interest earned.

Deposit amount₹1,00,000

Interest rate7.2%

Tenure5 yr

Invested70%

Interest30%

Invested₹1.00 L

Interest₹42.9K

Maturity Value₹1.43 L

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Save your calculation & get relevant financial insights.

A Fixed Deposit (FD) is a safe, guaranteed-return investment offered by banks and NBFCs. This calculator estimates your FD maturity value and the interest earned, using the quarterly compounding that most Indian banks apply.

How this calculator works

Enter your deposit amount, the interest rate, and the tenure in years. The calculator compounds interest quarterly (the standard for most banks) and shows your principal, interest earned and maturity value.

The formula

M = P × (1 + r/4)^(4 × n)

M: = Maturity value
P: = Principal deposit
r: = Annual interest rate (as a decimal)
n: = Tenure in years

Most banks compound FD interest quarterly. Senior citizens usually get an extra 0.25–0.50% rate.

Worked example

Example: ₹1,00,000 at 7.2% for 5 years

Deposit₹1,00,000

Interest rate7.2% p.a.

Tenure5 years

Maturity value ≈ ₹1,43,000 — about ₹43,000 earned as interest via quarterly compounding.

Key benefits

Capital protection with guaranteed returns
Predictable maturity value for goal planning
Flexible tenures from 7 days to 10 years
Loan/overdraft available against the FD

Smart tips

Ladder multiple FDs across tenures for liquidity and better average rates
Senior citizens get higher rates — use a parent's account where suitable
Submit Form 15G/15H to avoid TDS if your income is below the taxable limit
Compare small finance bank rates (often higher) within the ₹5 lakh DICGC insured limit

Frequently asked questions

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