FD Calculator

A fixed deposit (FD) locks a sum of money with a bank, small finance bank or NBFC for a fixed period at a fixed rate. This calculator estimates the maturity value of a cumulative FD, where interest is reinvested and paid out with the principal at the end. It uses quarterly compounding, which is the standard convention at Indian banks.

How to use this calculator

1. Enter the deposit amount (for example, ₹5 lakh).
2. Enter the annual interest rate offered for your tenure. Use the senior citizen rate if you are 60 or older.
3. Enter the tenure in years.
4. Read the maturity amount and the total interest earned.

Formula

A = P × (1 + r/4)^(4t)

• A = maturity amount
• P = principal deposited
• r = annual interest rate ÷ 100
• t = tenure in years
• 4 = number of compounding periods a year (quarterly)

Interest earned = A − P.

Worked example

You deposit ₹5 lakh for 5 years at 7% a year.

• r/4 = 0.07 ÷ 4 = 0.0175
• 4t = 20 quarters
• (1.0175)^20 ≈ 1.4148
• A = 5,00,000 × 1.4148 ≈ ₹7,07,389

Quarterly compounding lifts the effective annual yield at 7% to about 7.19%. In the first year the deposit earns about ₹35,930 of interest.

Things to keep in mind

• Senior citizen rates. Most banks pay resident individuals aged 60 and above an additional 0.25% to 0.50% a year, and some banks pay "super senior" depositors (80+) slightly more. Check your bank's current rate card for the exact tenure bucket.
• TDS on interest. For FY 2026-27, a bank deducts TDS when the interest it pays or credits to you in a financial year exceeds ₹50,000 (₹1 lakh for senior citizens). The threshold applies per bank and covers all your FDs and RDs there. TDS is 10% if PAN is linked, and higher without PAN. Under the Income-tax Act 2025, in force from 1 April 2026, this provision moved from Section 194A to Section 393, but the rates and limits are unchanged.
• Form 121. If tax on your total income for the year is nil, you can file a declaration so the bank does not deduct TDS. Form 121 replaces Forms 15G and 15H from tax year 2026-27.
• Tax on interest. FD interest is added to your income and taxed at your slab rate, whether or not TDS is deducted. TDS is only an advance payment. In the old regime, senior citizens can claim a deduction on bank interest up to ₹50,000 a year.
• Accrual taxation. Interest on a cumulative FD is taxable year by year as it accrues, not only at maturity.
• Payout FDs. If you choose monthly or quarterly interest payouts, there is no compounding on the paid-out interest, so the total earned is lower than shown here.
• Premature withdrawal. Breaking an FD early usually attracts a penalty of 0.5% to 1% on the applicable rate. Five-year tax-saver FDs cannot be broken early.
• Deposit insurance. DICGC insures deposits up to ₹5 lakh per depositor per bank, including interest.

Rates in this calculator are what you enter. Bank rates change with RBI policy, so check the current card before investing. This is an educational estimate, not advice.