FD Calculator
Key takeaways
- A ₹1.00 L FD at 7% for 5 years matures at ₹1.41 L — ₹41,478 in interest, compounded quarterly.
- Compounding quarterly makes the effective yield 7.19% a year, against the 7% nominal rate.
- At 7.5%, the same deposit would mature at ₹1.45 L — ₹3,517 more.
Yearly schedule
| Year | Deposited | Interest | Balance |
|---|---|---|---|
| 1 | ₹1.00 L | ₹7,186 | ₹1.07 L |
| 2 | ₹0 | ₹7,702 | ₹1.15 L |
| 3 | ₹0 | ₹8,256 | ₹1.23 L |
| 4 | ₹0 | ₹8,849 | ₹1.32 L |
| 5 | ₹0 | ₹9,485 | ₹1.41 L |
About the FD Calculator
A fixed deposit (FD) is money placed with a bank or NBFC for a fixed tenure at an interest rate agreed upfront. Unlike market investments, the rate is locked for the whole term, so the maturity amount is known in advance — so the maturity amount is known in advance.
This calculator compounds your principal at the rate and frequency you choose (banks usually compound quarterly) and shows the maturity amount and the total interest earned.
Frequently asked questions
How is FD interest calculated?
Most banks use compound interest: A = P × (1 + r/n)^(n×t), where P is the principal, r the annual rate, n the compounding frequency (4 for quarterly) and t the years. More frequent compounding earns slightly more.
Is FD interest taxable?
Yes. FD interest is fully taxable as 'income from other sources' at your slab rate. Banks deduct TDS at 10% once your interest crosses the annual threshold (₹50,000 for most depositors, ₹1 lakh for senior citizens, since FY 2025-26); submit Form 15G/15H — a single Form 121 from April 2026 — if your total income is below the taxable limit.
What is the difference between cumulative and non-cumulative FDs?
In a cumulative FD the interest is reinvested and paid with the principal at maturity (what this calculator shows). A non-cumulative FD pays interest out at regular intervals — monthly, quarterly or yearly — so the principal does not compound.
Can I withdraw an FD before maturity?
Usually yes, but banks apply a penalty (often 0.5–1% lower interest) for premature withdrawal, so you earn less than the booked rate. Tax-saver FDs with a 5-year lock-in cannot be broken early.
FD or RD — what is the difference?
An FD is a single lumpsum locked for a term; an RD (recurring deposit) is a fixed amount saved every month. Use an FD for money you already have and an RD to build savings gradually — our RD calculator handles the monthly version.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation. Interest rates on deposits and savings schemes are set by the bank or the Government and can change; where the calculator takes a rate, the figures hold it for the whole term. Tax on the interest, penalties and early-withdrawal rules are included only where the calculator shows them. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.