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Estimates only — not financial advice. Results are estimates for education and planning. Consult a qualified financial advisor (CA, CFP, or SEBI-registered advisor) before any major financial decision. See how results are validated on our Verification Methodology page, or read the full Terms of Service.

About This FD Calculator

This free FD calculator shows the exact maturity value and interest earned on a fixed deposit before you walk into the bank. It supports all four payout structures Indian banks offer — cumulative (reinvested), quarterly payout, monthly payout, and short-tenure simple interest — and automatically adds the 0.50% senior citizen bonus, so the number you see matches the bank's FD receipt.

Fixed deposits remain India's most trusted savings product, holding over half of household financial savings. But trust doesn't mean transparency: banks advertise headline rates without showing what quarterly compounding actually delivers, and few depositors realise that a monthly-payout FD earns a slightly lower effective rate than a cumulative one. A retiree in Coimbatore comparing a 7.1% cumulative FD against a 7.25% monthly-payout FD cannot eyeball which pays more — this calculator settles it in seconds, for any principal from ₹1,000 to several crores and tenures from 7 days to 10 years.

Why You Need an FD Calculator

The classic FD mistakes are choosing a payout mode without comparing effective yields, breaking a deposit early without checking the penalty math, and ignoring tax — FD interest is fully taxable at your slab rate, and banks deduct 10% TDS once interest crosses ₹50,000 a year (₹1 lakh for senior citizens). Running the numbers first shows your real post-compounding return so you can compare honestly against debt funds or an RD. For a complete primer on rates, laddering, and premature withdrawal rules, read our complete fixed deposit guide.

How to Use This FD Calculator

  1. Principal Amount (₹): The lump sum you plan to deposit. Enter the actual amount, not a rounded figure — compounding differences grow with the principal.
  2. Interest Rate (%): The annual rate your bank quotes for your chosen tenure. Check the bank's rate card — rates differ by tenure bucket, and small finance banks often pay 0.5–1% more than large banks.
  3. Tenure Type & Tenure Value: Choose years, months, or days and enter the duration. Tenures under 6 months use simple interest, which the calculator switches to automatically.
  4. Payout Type: Cumulative reinvests interest for maximum growth; quarterly or monthly payout suits anyone who needs regular income. Select senior citizen if applicable for the +0.50% rate.

The results show your maturity amount, total interest, and effective yield. A common mistake is comparing FDs by headline rate alone — always compare maturity values for the same tenure, and remember the interest shown is pre-tax.

How Fixed Deposit Interest Is Calculated

A Fixed Deposit (FD) is a savings instrument where you deposit a lump sum with a bank for a fixed period at a guaranteed interest rate. Unlike savings accounts, the interest rate on an FD does not change during the tenure, making it predictable. Indian banks typically compound FD interest quarterly, which means interest earned in one quarter itself earns interest in the next.

FD Compound Interest Formula

For cumulative FDs (interest reinvested), the maturity amount is:

A = P × (1 + r/n)^(n × t)

Where P is the principal, r is the annual interest rate (decimal), n is the compounding frequency per year (4 for quarterly), and t is the tenure in years. For simple-interest FDs (tenure under 6 months), the formula becomes: A = P × (1 + r × t).

Worked Example

You deposit ₹1,00,000 in a bank FD at 7% per annum for 3 years with quarterly compounding.

Senior citizens (age 60+) receive an additional 0.50% interest from most banks, bringing the effective rate to 7.5% in this example — yielding ₹1,25,022 at maturity.

Real-World FD Examples

Suresh, 63, Coimbatore — retirement corpus for monthly income

Suresh parks ₹20 lakh of his retirement corpus in a 5-year FD at 7% + 0.50% senior citizen bonus. In cumulative mode the calculator projects a maturity of about ₹29 lakh; switching to monthly payout shows roughly ₹12,500 a month of income with the principal returned at maturity. Seeing both modes side by side lets him split the corpus — half for income, half compounding.

Meera, 29, Jaipur — parking an annual bonus

Meera received a ₹2 lakh bonus she'll need for a wedding in 18 months. A 1.5-year FD at 6.9% (quarterly compounding) matures at about ₹2.21 lakh — guaranteed. She compared this against an equity SIP and chose the FD because the goal is too near to accept market risk. Takeaway: FDs win when the timeline is short and the amount is non-negotiable.

Accuracy & Common Questions

Is this FD calculator accurate?

Yes — it uses the quarterly compounding convention mandated for Indian banks and high-precision decimal arithmetic, so results match bank FD receipts. Minor rupee-level differences can occur when banks round interest at each quarter.

When should I use an FD instead of an RD or SIP?

Use an FD when you already have a lump sum. If you're saving month by month, compare with our RD calculator; if your horizon is 7+ years and you can accept market risk, a SIP has historically returned more.

Is FD interest taxable?

Yes, fully — it is added to your income and taxed at your slab rate. Banks deduct 10% TDS when annual interest exceeds ₹50,000 (₹1 lakh for senior citizens); submit Form 15G/15H if your total income is below the taxable limit.