Fixed Deposit (FD) Calculator
Maturity amount and interest on a bank fixed deposit.
Your files stay on your device
Maturity amount
-
- You deposit
- -
- Interest earned
- -
Year by year
| Year | Interest | Balance |
|---|
How to use FD Calculator
- Enter the amount you want to deposit.
- Add the rate your bank is actually offering, the one on your form rather than the headline rate.
- Set the tenure in years and months.
- Choose how often interest is added. Quarterly is what most Indian banks do, and it is the default here.
- Read the maturity amount and the interest earned, then open the table for the balance at the end of each year.
How the maturity amount is worked out
Compound interest: A = P × (1 + r/n)^(n × t). P is the deposit, r the yearly rate, n
the number of times interest is added each year, and t the tenure in years. Most Indian banks add
interest quarterly, so n is 4. That is the default here.
How often interest is added matters more than people expect. The same ₹5,00,000 at 7.1% for five years matures higher compounded monthly than compounded yearly, because the interest starts earning interest sooner.
A worked example
₹5,00,000 at 7.1% for five years, compounded quarterly, matures at roughly ₹7,10,900. That is about ₹2,10,900 of interest. Pick the simple-interest option instead, which is how a non-cumulative FD paying you each quarter behaves, and the interest is ₹1,77,500. The gap is what compounding adds.
Limits worth knowing
- Tax is not deducted. FD interest is fully taxable at your slab rate, and banks deduct TDS once interest crosses the yearly threshold. The maturity amount shown is before any of that.
- Senior citizens usually get an extra 0.25% to 0.75%. Type the rate you were actually quoted rather than the standard one.
- Breaking the deposit early normally costs a penalty of about 0.5% to 1% on the applicable rate, which this calculation does not model.
- Deposit insurance covers up to ₹5 lakh per depositor per bank, principal and interest together.
Frequently asked questions
How is the maturity amount calculated?
Compound interest: A = P x (1 + r/n)^(n x t). P is your deposit, r the yearly rate, n how many times a year interest is added, and t the tenure in years. With quarterly compounding n is 4.
Why does compounding frequency matter so much?
Because interest starts earning interest sooner. The same deposit at the same rate matures higher compounded monthly than compounded yearly. The gap is small over one year and real over five.
Is tax deducted from this figure?
No. FD interest is fully taxable at your slab rate, and the bank deducts TDS once your interest from that bank crosses the yearly threshold. The maturity amount here is before any tax.
What about the extra rate for senior citizens?
Most banks add between 0.25% and 0.75% for depositors over sixty. Type the rate you were actually quoted, because the calculator uses whatever you enter.
What happens if I break the deposit early?
You normally get the rate for the period you actually stayed invested, minus a penalty of about 0.5% to 1%. That can wipe out much of the gain from a longer tenure.
How much of my deposit is insured?
Deposit insurance covers up to Rs 5 lakh per depositor per bank, counting principal and interest together across all your accounts there. Spreading larger amounts across banks keeps everything covered.