FD Calculator - Fixed Deposit Maturity & Interest Calculator
Calculate Fixed Deposit (FD) maturity amount and interest earned. Compare different compounding frequencies and see inflation-adjusted returns.
Fixed Deposit Calculator
Calculate FD maturity amount with compounding interest
Where:
P = Principal, r = Rate,
n = Compounding frequency,
t = Time in years
Show real returns
Principal
₹1.00 L
Interest
₹44,994.803
Maturity
₹1.45 L
Effective Annual Rate
9.00% p.a.
Growth Projection
Year-by-Year Breakdown
Principal
₹1.00 L
Interest Rate
7.5%
| Year | Interest | Total |
|---|---|---|
| Year 1 | ₹7,713.587 | ₹1.08 L |
| Year 2 | ₹16,022.167 | ₹1.16 L |
| Year 3 | ₹24,971.638 | ₹1.25 L |
| Year 4 | ₹34,611.433 | ₹1.35 L |
| Year 5 | ₹44,994.803 | ₹1.45 L |
| Final | ₹44,994.803 | ₹1.45 L |
Compound Interest
Higher compounding frequency (monthly/quarterly) yields more returns. Compare different options to maximize your FD returns.
What is Fixed Deposit (FD)?
A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It is one of the safest investment options available in India.
You deposit a lump sum amount for a fixed tenure (ranging from 7 days to 10 years) at a pre-agreed interest rate. Even if market rates fall later, your FD continues to earn the booked interest rate, providing guaranteed returns and capital safety.
Guaranteed Returns
Unlike mutual funds or stocks, FD returns are fixed and guaranteed. You know exactly how much you will get at maturity.
Capital Safety
Bank FDs are insured up to ₹5 Lakhs by DICGC (RBI subsidiary). This makes them virtually risk-free for conservative investors.
Liquidity
You can close your FD prematurely (with a small penalty) or take a loan against FD (up to 90% value) to meet emergency needs without breaking it.
Flexible Interest Payouts
Choose between Cumulative (payment at maturity) or Non-Cumulative (monthly/quarterly/annual interest payout) options based on your income needs.
How FD Interest is Calculated
Most banks in India use Quarterly Compounding for Fixed Deposits. The formula used is:
FD Calculator - Frequently Asked Questions (FAQs)
Find answers to the most common questions about FD calculator and fixed deposits in India
Q1.How to calculate FD maturity amount?
FD maturity amount is calculated using compound interest formula: A = P × (1 + r/n)^(n×t), where P is principal amount, r is annual interest rate, n is compounding frequency (4 for quarterly, 12 for monthly, 1 for annual), and t is tenure in years. Our FD calculator does this automatically for you, showing accurate maturity amount based on your inputs.
Q2.What is the best FD interest rate in India?
FD interest rates in India range from 5.5% to 8% depending on the bank and tenure. Small finance banks and NBFCs typically offer higher rates (7-8%) compared to large banks (5.5-6.5%). Rates vary with tenure - longer tenures usually have higher rates. Senior citizens get 0.25-0.5% extra. Always compare rates from multiple banks before investing.
Q3.FD calculator with tax deduction?
FD interest is taxable as per your income tax slab. TDS of 10% is deducted at source if interest exceeds ₹40,000 annually (₹50,000 for senior citizens). Our FD calculator shows interest before tax. Deduct tax based on your slab (5%, 20%, or 30%) to get net returns. Submit Form 15G/15H to avoid TDS if your total income is below taxable limit.
Q4.Which compounding frequency is better for FD?
Quarterly compounding typically gives slightly higher returns than annual compounding due to more frequent compounding. Monthly compounding gives even better returns. However, the difference is marginal (0.1-0.2% for same rate). Choose based on your cash flow needs and bank's offerings. Most banks offer quarterly compounding as default.
Q5.What is the minimum FD amount?
Minimum FD amount varies by bank, typically ranging from ₹1,000 to ₹5,000. Some banks allow FDs as low as ₹100 for online accounts. There's usually no maximum limit. Banks may offer higher rates for larger deposits (₹1 crore+). Check with your specific bank for their minimum requirements.
Q6.Can I break FD before maturity?
Yes, you can break FD before maturity, but banks charge penalty (usually 0.5-1% on interest rate or loss of 1-3 months interest). Some banks offer flexible FDs with zero or lower penalties. Breaking FD early reduces your returns significantly. Consider your liquidity needs before investing in FD with long tenure.
Q7.Is FD interest taxable every year?
FD interest is taxable as per your income tax slab, but tax is due only when interest is paid or credited. For cumulative FDs, interest is credited at maturity, so tax is due in the maturity year. For non-cumulative FDs with periodic payouts, tax is due each year interest is paid. TDS is deducted annually if interest exceeds ₹40,000 (₹50,000 for seniors).
Q8.FD vs savings account - which is better?
FD offers higher interest rates (6-8%) compared to savings account (3-4%), but money is locked for fixed period. Savings account offers liquidity but lower returns. For emergency fund, keep 3-6 months expenses in savings account. For goals 1+ year away, FD is better. Use both based on your needs - savings for liquidity, FD for higher returns.
Q9.Can I take loan against FD?
Yes, most banks offer loans against FD at interest rates 1-2% above FD rate. You can get up to 90-95% of FD value as loan. This is better than breaking FD as you retain FD benefits and pay lower interest than personal loans. Interest on loan against FD is tax-deductible if used for business purposes.
Q10.What happens if bank closes my FD bank?
FD deposits up to ₹5 lakhs are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC). If bank closes, you'll receive insured amount (principal + interest up to ₹5L) from DICGC. For amounts above ₹5L, recovery depends on bank's assets. Choose banks with good ratings and consider splitting large FDs across multiple banks.
Q11.FD calculator for senior citizens?
Senior citizens (60+ years) get 0.25-0.5% extra interest on FDs. TDS limit is higher (₹50,000 vs ₹40,000). Our FD calculator allows you to input any interest rate, so add 0.25-0.5% to regular rate for senior citizen calculations. Senior citizen rates typically range from 6.5% to 8.5% depending on bank and tenure.
Q12.How to calculate FD interest manually?
Use formula: A = P × (1 + r/n)^(n×t), where A = Maturity amount, P = Principal, r = Annual rate (as decimal), n = Compounding frequency, t = Time in years. For quarterly compounding: n=4, for monthly: n=12, for annual: n=1. Interest = A - P. However, using our FD calculator is much easier and provides instant accurate results.
Q13.Can I open FD online?
Yes, most banks allow opening FD online through net banking or mobile app. Process is quick and paperless. You can choose tenure, interest payout frequency, and get instant confirmation. Online FDs offer same rates as branch FDs. Some banks offer slightly higher rates for online FDs or waive processing fees.
Q14.FD vs recurring deposit (RD) - which is better?
FD is for lump sum investment, RD for regular monthly deposits. FD is better if you have lump sum money and want to invest at once. RD is better if you want to invest monthly from salary. FD typically offers slightly higher rates than RD for same tenure. Choose based on your cash flow - lump sum → FD, monthly savings → RD.
Q15.What is the maximum FD tenure?
Maximum FD tenure varies by bank, typically 5-10 years. Some banks offer FDs up to 20 years. Longer tenures usually have higher interest rates. However, very long tenures lock your money, reducing flexibility. Consider your goals - for 5+ year goals, longer tenure FD makes sense. For shorter goals, choose shorter tenure.
Q16.How to avoid TDS on FD?
Submit Form 15G (for individuals) or Form 15H (for senior citizens) to avoid TDS if your total income is below taxable limit. Form should be submitted before FD interest payment date. If TDS is already deducted, claim refund while filing ITR. Interest income is added to your total income and taxed as per your slab.
Q17.FD interest calculation method?
FD interest is calculated using compound interest formula. Interest compounds based on frequency - quarterly (every 3 months), monthly (every month), or annually (once a year). More frequent compounding = higher returns. Formula: A = P × (1 + r/n)^(n×t). Our FD calculator uses this formula for accurate calculations.
Q18.Can I change FD tenure after opening?
Generally, you cannot change FD tenure after opening. To change tenure, you need to break existing FD (with penalty) and open new FD with desired tenure. Some banks offer flexible FDs that allow changes, but rates may differ. Plan your tenure carefully before opening FD to avoid penalties.
Q19.FD for minors - how does it work?
Minors can have FDs opened by parents/guardians. Account operates until minor turns 18. Interest is clubbed with parent's income for tax purposes. Rates are same as regular FDs. FDs help save for child's future education, marriage, etc. Consider long-term FDs for children to benefit from higher rates and compounding.
Q20.What is auto-renewal in FD?
Auto-renewal means FD automatically renews at maturity at prevailing interest rates for same tenure. You receive maturity amount + interest, and new FD is created automatically. You can opt for auto-renewal when opening FD. Check if auto-renewal rates are competitive - you may get better rates by manually renewing.
Q21.FD vs PPF - which is better?
FD offers guaranteed returns (6-8%), liquidity (with penalty), and no tax deduction. PPF offers tax deduction under Section 80C, tax-free returns, but 15-year lock-in. For tax savings, PPF is better. For short-term goals and liquidity, FD is better. You can invest in both - PPF for long-term tax savings, FD for short-term goals.
Q22.How to calculate effective interest rate on FD?
Effective interest rate accounts for compounding. Formula: (1 + r/n)^n - 1, where r = annual rate, n = compounding frequency. For 7% annual rate with quarterly compounding: (1 + 0.07/4)^4 - 1 = 7.19% effective rate. Our FD calculator shows effective returns automatically, accounting for compounding frequency.
Q23.FD interest paid monthly vs quarterly?
Interest payout frequency affects total returns. Quarterly payout gives slightly higher returns than monthly due to compounding on interest. However, difference is minimal. Choose based on cash flow needs - if you need monthly income, choose monthly payout. If you want to reinvest, quarterly or cumulative (reinvested) is better.
Q24.Can I have multiple FDs?
Yes, you can have multiple FDs with same or different banks. This helps with liquidity - you can break one FD while others continue. Consider laddering strategy - open FDs with different maturity dates to have regular liquidity. Multiple FDs also help stay within DICGC insurance limit (₹5L per bank).
Q25.FD calculator for tax saving FD?
Tax saving FD has 5-year lock-in, qualifies for Section 80C deduction up to ₹1.5L. Interest is taxable. Our FD calculator works for tax saving FDs - just set tenure to 5 years. Remember: Tax saving FD cannot be broken before 5 years, unlike regular FD. Compare returns with other 80C options like PPF, ELSS.