How to use the FD calculator
Enter the amount you will deposit, the interest rate your bank offers and the tenure. Use decimals for part years: 0.5 for six months, 1.25 for fifteen months. Choose how often the bank compounds interest; most banks compound quarterly.
For example, ₹1 lakh at 7% for 5 years with quarterly compounding grows to about ₹1,41,478. With yearly compounding the same deposit gives ₹1,40,255, about ₹1,200 less.
The FD formula
A = P × (1 + r ÷ n)n × t
- A is the maturity amount and P the deposit
- r is the yearly interest rate as a decimal
- n is how many times interest is compounded each year (4 for quarterly)
- t is the tenure in years
This is for a cumulative FD, where interest is added back to the deposit. If you choose monthly or quarterly payouts instead, you receive the interest as it is earned and the deposit does not grow.
Things to know before you book an FD
- Tax: interest is taxed at your slab rate every year, even on a cumulative FD.
- TDS: banks deduct 10% when your interest from one bank crosses ₹50,000 a year (₹1 lakh for senior citizens). If your income is below the taxable limit, submit Form 121 (it replaced Forms 15G and 15H from 1 April 2026).
- Safety: DICGC insures up to ₹5 lakh per depositor per bank.
- Breaking early: most banks cut the rate by 0.5–1% on premature withdrawal.
- Senior citizens usually get 0.25–0.5% extra.
Frequently asked questions
How is FD maturity amount calculated?
Maturity = P × (1 + r ÷ n)^(n × t), where P is the deposit, r is the yearly rate as a decimal, n is the number of times interest is compounded each year (4 for quarterly) and t is the tenure in years.
Do banks compound FD interest quarterly?
Most Indian banks compound cumulative FD interest every quarter. Some small finance banks compound monthly. Check your bank’s FD terms and pick the matching option.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS when your interest from one bank crosses ₹50,000 in a year (₹1 lakh for senior citizens). If your total income is below the taxable limit, give the bank Form 121 (it replaced Forms 15G and 15H from 1 April 2026) to stop TDS.
Is my FD safe?
Deposits in each bank are insured by DICGC up to ₹5 lakh per depositor, including interest. Spread larger amounts across banks for full cover.
What is a tax-saver FD?
A 5-year fixed deposit with a lock-in that qualifies for a deduction of up to ₹1.5 lakh under Section 80C in the old tax regime. It offers no deduction under the new regime.
Last reviewed: 13-10-2026. Rates and rules are checked against official sources; tell us if something has changed. Contact