FD calculator
Calculate your Fixed Deposit maturity value and total interest for any tenure. Choose compounding frequency to match your bank and see a year-by-year breakdown.
How does a Fixed Deposit work?
A Fixed Deposit is a savings product offered by banks and NBFCs where you lock in a lump sum for a chosen tenure at a guaranteed interest rate. Unlike market-linked investments, FD returns are known upfront and insured up to ₹5 lakh per bank under DICGC. The maturity amount depends on three things: the principal, the interest rate, and how often interest compounds.
Most Indian banks compound quarterly — that's the default here. Some small finance banks offer monthly compounding, which yields slightly more. Senior citizens usually get 0.25–0.75% extra. Break-free FDs can be withdrawn early but typically forfeit some interest as a penalty.
"The share of net financial savings in total household savings has declined. It fell to 28.5 per cent in 2022-23, from an average of 39.8 per cent during 2013-2022."
The FD formula
The compound-interest formula applies: A = P × (1 + r/n)^(n × t), where P is principal, r is the annual interest rate as a decimal, n is the number of compounding periods per year (4 for quarterly), and t is the tenure in years. The calculator converts your years-months-days tenure into a decimal year using 365 days/year.
A = P × (1 + r/n)^(n × t)Taxation on FD interest
Interest earned on FDs is fully taxable at your income-tax slab rate. Banks deduct TDS at 10% if annual interest crosses ₹40,000 (₹50,000 for seniors). The calculator shows pre-tax interest — your take-home will be lower depending on your slab.
FD vs SIP vs Lump Sum: Which Investment Wins?
Comparing three popular Indian investment options across risk, return, and liquidity.
| Feature | FD | SIP | Lump Sum |
|---|---|---|---|
| Returns | Guaranteed (6–8%) | Market-linked (~12% long-term) | Market-linked (~12% long-term) |
| Risk level | None | Low–Medium | Medium–High |
| Investment style | One-time deposit | Monthly installments | One-time investment |
| Liquidity | Locked (penalty on early exit) | Redeemable anytime | Redeemable anytime |
| Minimum amount | ₹1,000 | ₹500/month | ₹1,000 |
| Inflation protection | Partial (rate may lag inflation) | Yes (equity beats inflation) | Yes (equity beats inflation) |
| Tax on returns | Interest taxed as income | 12.5% LTCG above ₹1.25L | 12.5% LTCG above ₹1.25L |
| Ideal tenure | 7 days – 10 yearsFlexible | 5+ years | 3+ years |
| Best for | Capital preservation, senior citizens | Regular savers, long-term wealth | Those with surplus corpus |
FD rates vary by bank and tenure. Mutual fund returns are historical averages and not guaranteed.
Common Uses
- Short-term savings goal: Calculate the maturity amount for a 3–12 month FD to decide if it meets a specific savings target (vacation, appliance purchase).
- Senior citizen income planning: Senior citizens use FD interest as regular income — calculate monthly/quarterly interest payouts for living expense planning.
- Tax liability estimation: Estimate TDS and net interest earned on FDs to plan advance tax payments before the financial year end.
- Bank comparison: Compare maturity amounts across banks offering different rates for the same deposit amount and tenure.
- Laddering strategy: Plan a series of FDs with staggered maturities so funds become available at regular intervals rather than a single date.
- Emergency fund parking: Calculate how much interest a 3-month emergency fund earns in a liquid FD versus a savings account.
- Corporate FD evaluation: Compare NBFC or company FDs (higher rates, higher risk) with bank FDs to make an informed risk-return decision.
FAQ
How often is FD interest compounded?
Most banks compound quarterly, the standard convention in India. Some small finance banks offer monthly compounding on select tenures, which adds a tiny bit more interest. Senior-citizen rates are typically 0.25–0.75% higher than regular rates.
Is FD interest taxable?
TDS (Tax Deducted at Source) applies if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens) across deposits at a single bank. Submit Form 15G/15H if your total income is below the taxable threshold. The full interest is taxable at your slab rate regardless of TDS.
Can I break an FD before maturity?
Yes, but premature withdrawal usually incurs a penalty of 0.5–1% reduction in the applicable interest rate — and the interest is recalculated for the actual period held, not the original tenure. Some banks offer "sweep-in" or "flexi" FDs that allow penalty-free partial withdrawals.
Are there tax-saver FDs?
Tax-saver FDs (5-year lock-in) qualify for Section 80C deductions up to ₹1.5 lakh per year. Regular FDs don't offer tax benefits on the principal, and the interest is always fully taxable. For higher post-tax returns, compare with debt mutual funds or PPF/SSY depending on your horizon.
Does the FD calculator store my financial data?
No. All calculations run entirely in your browser. Your deposit and rate figures are never sent to a server or stored after you close the page.
What is the difference between cumulative and non-cumulative FDs?
Cumulative FDs reinvest the interest and pay everything at maturity — a larger lump sum. Non-cumulative FDs pay interest at regular intervals (monthly, quarterly, or annually) as a steady income stream.
By the Numbers
- Fixed deposits account for approximately 35% of household financial savings in India (RBI Annual Report)
- Senior citizens typically receive 0.25–0.50% additional interest on FDs from most Indian banks
- TDS is deducted on FD interest exceeding ₹40,000 per year (₹50,000 for senior citizens) under the Income Tax Act
- The DICGC insures bank deposits up to ₹5 lakh per depositor per bank in India