FD Calculator

Calculate fixed deposit maturity with different compounding frequencies.

FD Details

Principal Amount

₹

₹1,000₹10,00,00,000

Interest Rate (p.a.)

1%15%

Time Period

months

1 months120 months

Simple Interest

Use simple interest instead of compound

Compounding Frequency

Most Indian banks compound quarterly

Adjust for Inflation

Show value in today's money

Maturity Amount

₹1,07,186

Effective annual rate: 7.19%

Principal₹1,00,000

Total Interest₹7,186

Quarterly Breakdown

Month	Invested	Interest	Total Value
3	₹1,00,000	₹1,750	₹1,01,750
6	₹1,00,000	₹3,531	₹1,03,531
9	₹1,00,000	₹5,342	₹1,05,342
12	₹1,00,000	₹7,186	₹1,07,186

What is a Fixed Deposit?

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 ₹5 lakhs per depositor per bank.

Compound vs Simple Interest

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 × r × t.

Understanding Effective Annual Rate

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.

Tax on FD Interest

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 ₹40,000 in a financial year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

How FD Calculator Works

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 × (1 + r/n)^(n×t)

Where A = Maturity amount, P = Principal, r = Annual interest rate (as decimal), n = Compounding frequency per year, t = Time in years (months ÷ 12)

Simple Interest Formula:

A = P × (1 + r × t)

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Best RD Interest Rates: Bank-wise Comparison (2024)

Compare RD interest rates across major banks in India. Find the best recurring deposit rates from SBI, HDFC, ICICI, small finance banks, and post offices.

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Corporate FDs: Higher Returns, Higher Risk

Learn about corporate fixed deposits, their higher returns, associated risks, credit ratings, and how to evaluate if they're right for your portfolio.

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