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FD Calculator

Work out the maturity amount and interest on a bank fixed deposit with monthly, quarterly, half-yearly or yearly compounding.

Rules last reviewed: September 2026

Disclaimer: Results are estimates for informational purposes only and are not professional financial, tax or legal advice. Rules change — please verify with official sources or a qualified professional before making decisions.

What is a fixed deposit?

A fixed deposit (FD) lets you park a lump sum with a bank or NBFC for a fixed period at a pre-agreed interest rate. It is popular for its predictability: you know the maturity amount at the start. Senior citizens usually get a higher rate than the regular customer rate.

How FD maturity is calculated

A = P × (1 + r ÷ n)^(n × t)
P = principal · r = annual rate · n = compounding periods per year · t = years

Banks compound FD interest quarterly by default, so interest earned every three months starts earning interest itself. More frequent compounding gives a slightly higher maturity amount for the same headline rate.

Worked example

₹1,00,000 at 7% for 5 years

Yearly compounding
₹1,40,255
Half-yearly compounding
₹1,41,060
Quarterly compounding (standard)
₹1,41,478
Monthly compounding
₹1,41,763

Things to know before you invest

  • Interest is taxable at your slab rate. Banks deduct TDS once interest crosses a yearly threshold, which you can avoid with Form 15G/15H if your total income is below the taxable limit.
  • Deposit insurance: DICGC covers up to ₹5 lakh per depositor per bank, including principal and interest.
  • Premature withdrawal usually attracts a penalty of about 0.5–1% on the rate.
  • For interest income at regular intervals, choose the payout option; it earns simple, non-compounded interest.

Build an FD ladder

Instead of one large deposit, split your money across several FDs that mature in different years. Something is always coming due, so you can reinvest at prevailing rates or use the cash in an emergency without breaking a long deposit and paying a penalty.

Frequently asked questions

Which compounding frequency do banks use for FDs?

Most Indian banks compound FD interest quarterly. Some offer monthly or yearly compounding, or a payout option. Check your bank's terms and choose the matching option in the calculator.

Is the interest on an FD taxable?

Yes. FD interest is added to your income and taxed at your slab rate. TDS may be deducted by the bank, but the final tax is settled when you file your return.

How is FD different from RD?

An FD is a one-time lump-sum deposit. An RD (recurring deposit) collects a fixed amount every month. Use the RD calculator if you want to save monthly.

Are FD rates fixed for the whole term?

Yes. The rate on the day you book the FD stays fixed until maturity, even if market rates move.

How do I choose the right FD tenure?

Match the tenure to when you need the money. Longer FDs often pay more, but if you may need cash sooner, pick a shorter tenure or use a ladder of several FDs.