FD Calculator
Calculate fixed deposit maturity with different compounding frequencies.
Calculate fixed deposit maturity with different compounding frequencies.
Use simple interest instead of compound
Most Indian banks compound quarterly
Show value in today's money
Maturity Amount
โน1,07,186
Effective annual rate: 7.19%
| Month | Invested | Interest | Total Value |
|---|---|---|---|
| 3 | โน1,00,000 | โน1,750 | โน1,01,750 |
| 6 | โน1,00,000 | โน3,531 | โน1,03,531 |
| 9 | โน1,00,000 | โน5,342 | โน1,05,342 |
| 12 | โน1,00,000 | โน7,186 | โน1,07,186 |
A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. FDs are one of the safest investment options in India, backed by deposit insurance up to โน5 lakhs per depositor per bank.
Compound Interest: Interest is calculated on both the principal and accumulated interest. Most bank FDs use quarterly compounding, meaning interest is added to your principal four times a year. This results in higher returns compared to simple interest.
Simple Interest: Interest is calculated only on the original principal amount. Some short-term deposits or corporate FDs may use simple interest. The formula is straightforward: I = P ร r ร t.
When comparing FDs with different compounding frequencies, the effective annual rate (EAR) gives you the true annual return. An FD with 7% annual rate compounded quarterly actually yields approximately 7.19% when annualized. This helps you make apple-to-apple comparisons between different FD offerings.
Interest earned on FDs is fully taxable as "Income from Other Sources" at your applicable tax slab rate. Banks deduct TDS at 10% if your total interest income from that bank exceeds โน40,000 in a financial year (โน50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
This calculator estimates your FD maturity amount using either compound or simple interest formulas. Enter your deposit amount, interest rate, tenure, and compounding frequency to see your projected returns.
Compound Interest Formula:
A = P ร (1 + r/n)^(nรt)Where A = Maturity amount, P = Principal, r = Annual interest rate (as decimal), n = Compounding frequency per year, t = Time in years (months รท 12)
Simple Interest Formula:
A = P ร (1 + r ร t)