How does this calculator compound interest?

Quarterly, which is what almost all Indian banks use for cumulative FDs: the annual rate is divided by four and applied every three months, so M = P × (1 + r ÷ 400)^(4t). That makes the effective annual yield slightly higher than the quoted rate — 7% compounded quarterly is about 7.19% a year.

Is TDS deducted on FD interest?

Yes, once it crosses a threshold. As of FY 2025-26, banks deduct 10% TDS under §194A when your interest at that bank exceeds ₹50,000 in a financial year — ₹1,00,000 for senior citizens — and a higher rate applies if your PAN isn’t on record. TDS is not the final tax: FD interest is fully taxable at your slab rate, and if your total income is below the taxable limit you can submit Form 15G (15H for seniors) to skip the deduction.

What happens if I withdraw the FD early?

Banks typically pay the rate applicable to the period the deposit actually ran, minus a premature-withdrawal penalty of around 0.5–1%. The maturity shown here assumes you hold to term, so an early exit will land noticeably below it. Laddering several smaller FDs is a common way to keep liquidity without breaking one large deposit.

Is a fixed deposit safe?

Bank FDs are among the safest rupee instruments, and deposits are insured by DICGC up to ₹5 lakh per depositor per bank — principal plus interest — as of 2026. If you hold more than that, splitting across banks extends the cover. Corporate FDs are not covered by DICGC and carry credit risk in exchange for their higher rates.

Cumulative or non-cumulative FD — which does this model?

Cumulative: interest is reinvested each quarter and paid at maturity, which is what the compounding formula assumes. A non-cumulative FD pays interest out monthly, quarterly or annually, so there is nothing to compound — you get regular income and a maturity equal to your principal, usually at a slightly lower payout rate.

Is my deposit data uploaded?

No — the calculation runs entirely in your browser and nothing you enter leaves your device.

FD Calculator (Fixed Deposit)

Calculate fixed deposit maturity and interest with quarterly compounding.

Runs in your browser — files never leave your device

Deposit amount₹Interest rate%Years

Maturity

₹1,41,477.82

Invested

₹1,00,000

Interest

₹41,477.82

How it works

A fixed deposit locks a lump sum with a bank for a set tenure at a rate agreed up front. This calculator shows the maturity amount and total interest for a cumulative FD — one where interest is reinvested rather than paid out — using quarterly compounding, the convention nearly all Indian banks apply to cumulative deposits.

The formula is M = P × (1 + r ÷ 400)^(4 × t), where P is the deposit, r is the annual rate in percent and t is the tenure in years: the annual rate is split into four quarterly additions of r ÷ 4 each, so interest starts earning interest every quarter. Fractional tenures work too — 1.5 years simply means six quarters.

Worked example with the defaults: ₹1,00,000 at 7% for 5 years. The quarterly rate is 1.75%, applied 20 times: M = 1,00,000 × (1.0175)²⁰ = ₹1,41,477.82, so interest earned is ₹41,477.82. Simple interest at the same rate would pay ₹35,000 — quarterly compounding adds ₹6,477.82 over the five years, and the gap widens with longer tenures.

Enter the rate your own bank quotes for your tenure — FD rates vary by bank, tenure bucket and depositor age, and senior citizens typically get around 0.25–0.75 percentage points extra. Note that the result is the pre-tax maturity: FD interest is fully taxable at your slab rate, and as of FY 2025-26 banks deduct 10% TDS under §194A once interest crosses ₹50,000 in a year (₹1,00,000 for senior citizens).

Two caveats. The tool models a cumulative FD held to maturity — non-cumulative FDs that pay interest out monthly or quarterly don’t compound, so their maturity equals the principal. And premature withdrawal usually earns a lower rate plus a penalty, so the projected maturity only holds if you stay invested. Treat the tax figures as estimates and confirm with your bank or a CA.

Frequently asked questions

How does this calculator compound interest?: Quarterly, which is what almost all Indian banks use for cumulative FDs: the annual rate is divided by four and applied every three months, so M = P × (1 + r ÷ 400)^(4t). That makes the effective annual yield slightly higher than the quoted rate — 7% compounded quarterly is about 7.19% a year.
Is TDS deducted on FD interest?: Yes, once it crosses a threshold. As of FY 2025-26, banks deduct 10% TDS under §194A when your interest at that bank exceeds ₹50,000 in a financial year — ₹1,00,000 for senior citizens — and a higher rate applies if your PAN isn’t on record. TDS is not the final tax: FD interest is fully taxable at your slab rate, and if your total income is below the taxable limit you can submit Form 15G (15H for seniors) to skip the deduction.
What happens if I withdraw the FD early?: Banks typically pay the rate applicable to the period the deposit actually ran, minus a premature-withdrawal penalty of around 0.5–1%. The maturity shown here assumes you hold to term, so an early exit will land noticeably below it. Laddering several smaller FDs is a common way to keep liquidity without breaking one large deposit.
Is a fixed deposit safe?: Bank FDs are among the safest rupee instruments, and deposits are insured by DICGC up to ₹5 lakh per depositor per bank — principal plus interest — as of 2026. If you hold more than that, splitting across banks extends the cover. Corporate FDs are not covered by DICGC and carry credit risk in exchange for their higher rates.
Cumulative or non-cumulative FD — which does this model?: Cumulative: interest is reinvested each quarter and paid at maturity, which is what the compounding formula assumes. A non-cumulative FD pays interest out monthly, quarterly or annually, so there is nothing to compound — you get regular income and a maturity equal to your principal, usually at a slightly lower payout rate.
Is my deposit data uploaded?: No — the calculation runs entirely in your browser and nothing you enter leaves your device.

FD Calculator (Fixed Deposit)

How it works

Frequently asked questions

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