FD Calculator
Calculate fixed deposit maturity amount and interest earned with quarterly compounding across all tenures.
How to Use the FD Calculator
- Enter your deposit amount.
- Enter the annual interest rate offered by your bank (check for senior citizen rates if eligible).
- Enter the tenure in years (0.25 for 3 months, 0.5 for 6 months).
- Click Calculate Maturity to see maturity value, interest earned, and the compounding benefit over simple interest.
Formula & Method
Bank FDs compound quarterly:
Maturity = P x (1 + R/400)^(4 x Y)
Where P = deposit, R = annual rate, Y = years. The 400 divisor converts the annual rate to a quarterly rate (R/4 percent), and 4Y is the number of quarters.
Quarterly compounding earns slightly more than annual compounding at the same rate.
Examples
| Deposit | Rate | Tenure | Maturity | Interest |
|---|---|---|---|---|
| 100,000 | 7% | 1 yr | 107,186 | 7,186 |
| 100,000 | 7% | 5 yr | 141,478 | 41,478 |
| 500,000 | 7.5% | 3 yr | 624,858 | 124,858 |
| 200,000 | 6.5% | 2 yr | 227,528 | 27,528 |
Frequently Asked Questions
How is FD interest calculated?
Most bank FDs compound quarterly: Maturity = P x (1 + R/400)^(4Y). Some banks offer simple-interest FDs for short tenures or monthly payout options.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS if annual interest exceeds 40,000 (50,000 for senior citizens). Submit Form 15G/15H if your income is below the taxable limit.
What happens if I break my FD early?
Banks charge a penalty of 0.5-1% on the applicable rate for the actual period held. Your effective return drops, so choose tenure carefully or ladder multiple FDs.
FD vs SIP: which is better?
FDs give guaranteed 6-7.5% returns with zero risk (insured up to 5 lakh per bank). Equity SIPs have historically returned 10-12% but with market risk. Many investors use both.
Do senior citizens get higher FD rates?
Yes, most banks offer 0.25-0.50% extra for depositors aged 60 and above, plus a higher TDS exemption threshold.
🔥 Popular FD Calculator Results
Quick links to common calculations:
People Also Ask
How much will 1 lakh FD grow in 5 years?
At 7% with quarterly compounding, 1,00,000 becomes about 1,41,478 in 5 years — interest of 41,478.
Which bank gives the highest FD rate?
Small finance banks often offer 8-9% while large banks offer 6.5-7.5%. Rates change frequently — compare current rates before booking, and stay within the 5 lakh deposit insurance limit per bank.
Can I get monthly income from FD?
Yes — choose a non-cumulative FD with monthly or quarterly interest payout. You earn slightly less than cumulative (compounding) FDs at the same rate.