About the FD Calculator
An FD calculator shows what a fixed deposit pays at maturity. Most Indian banks compound FD interest quarterly. ₹1,00,000 at 7% for 5 years, compounded quarterly, matures at ₹1,41,478, earning ₹41,478 before tax.
How it is calculated
A = P × (1 + r/n)^(n × t)
- P is the deposit, r the annual rate as a decimal, t the tenure in years.
- n is the number of compounding periods a year: 4 for quarterly, the usual bank method.
- This is the cumulative (reinvestment) option. With monthly or quarterly payout, interest is paid out instead of compounding.
Worked example
Inputs: ₹1,00,000 at 7% for 5 years, compounded quarterly.
Result: Maturity value ₹1,41,478, interest ₹41,478.
Rules and assumptions
- FD interest is added to your income and taxed at your slab rate.
- Banks deduct 10% TDS when your interest from one bank exceeds ₹50,000 in a year (₹1,00,000 for senior citizens), from FY 2025-26. Form 15G or 15H can avoid TDS if your income is below the taxable limit.
- Deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including interest.
Frequently asked questions
How is FD interest calculated?
With compound interest: A = P × (1 + r/n)^(n × t). Most banks compound quarterly, so n = 4.
Is FD interest taxable?
Yes. It is added to your income and taxed at your slab rate, whether you take it out or it is reinvested.
Do senior citizens get a higher FD rate?
Most banks pay senior citizens an extra 0.25% to 0.50% a year. Enter the senior rate in the calculator.
What happens if I break an FD early?
Banks usually pay the rate for the period the money actually stayed, minus a penalty, often 0.5% to 1%.