FD Calculator

📊 Year-wise FD Growth Schedule

An estimated year-by-year view of how your deposit could grow, based on the amount, rate, tenure and compounding frequency entered above.

What is a Fixed Deposit?

A Fixed Deposit (FD) is a financial product offered by banks and non-banking financial companies (NBFCs) where you invest a lump sum amount for a fixed tenure at a predetermined interest rate. In return, the institution pays interest on your deposit, and the full amount — principal plus interest — is generally paid back to you at maturity, subject to the product's terms. FDs are commonly used for short- to medium-term savings goals because the rate is fixed for the tenure, unlike market-linked investments.

How Does an FD Work?

• Principal: the lump sum amount you deposit at the start.
• Interest rate: the annual rate the institution agrees to pay, fixed for the tenure you choose.
• Tenure: the length of time your money stays deposited, commonly ranging from a few days to several years depending on the product.
• Compounding: how often interest is calculated and added to your balance during the tenure — monthly, quarterly, half-yearly or annually.
• Maturity: the end of the tenure, when the deposit plus accumulated interest becomes payable, according to the product's terms.
• Withdrawal conditions: most FDs allow premature withdrawal subject to a penalty or reduced rate, while certain tax-saving FDs carry a mandatory lock-in period.

FDs are generally considered a lower-risk way to earn a fixed, pre-agreed rate of return compared with market-linked investments, but "lower risk" is not the same as "no risk" — returns, insurance coverage and product terms depend on the specific institution and scheme, so it's worth reading the product's terms carefully before investing.

FD Calculator Formula

This calculator estimates the maturity value of a fixed deposit using the standard compound interest formula:

M = P × (1 + r/n)^(n×t)

• M = estimated maturity amount
• P = principal (deposit) amount
• r = annual interest rate, expressed as a decimal
• n = number of compounding periods per year (12 monthly, 4 quarterly, 2 half-yearly, 1 annually)
• t = tenure in years

From this, Total Interest Earned = M − P. The calculator also shows an Effective Yield, calculated as the actual annual growth rate implied by the compounding frequency: (1 + r/n)^n − 1, expressed as a percentage. This effective yield is generally slightly higher than the nominal annual rate whenever compounding happens more than once a year, because interest itself starts earning interest within the same year.

FD Calculation Example

For a deposit of ₹5,00,000, an interest rate of 7% per annum, a tenure of 5 years and quarterly compounding, this calculator's formula produces the following estimate:

• Maturity Amount: ₹7,07,389
• Total Interest Earned: ₹2,07,389
• Effective Yield: 7.19%

These are the calculator's default values — enter ₹5,00,000, 7% and 5 years with quarterly compounding above to see the same live result.

Compounding Frequency Explained

• Monthly compounding: interest is calculated and added to the balance 12 times per year.
• Quarterly compounding: interest is calculated 4 times per year — the convention most commonly used by Indian banks.
• Half-yearly compounding: interest is calculated 2 times per year.
• Annual compounding: interest is calculated once per year.

When the nominal annual rate and all other inputs are held constant, more frequent compounding produces a mathematically higher maturity amount under the formula this calculator uses, because interest is credited — and starts earning further interest — sooner. This is a property of the formula, not a guarantee about any specific bank's product; actual FD schemes may use their own conventions, and the compounding frequency is usually fixed by the product rather than something you can freely choose.

Cumulative vs Non-Cumulative FD

Cumulative FD: interest is generally accumulated and reinvested within the deposit, with the full amount — principal and accrued interest — paid out at maturity, according to the product's terms. This calculator models a cumulative-style FD.

Non-cumulative FD: interest is generally paid out periodically — monthly, quarterly, half-yearly or annually — according to the payout option selected, rather than added back to the principal. Neither option is universally better; a cumulative FD tends to suit investors focused on maximizing the maturity value, while a non-cumulative FD tends to suit investors who want a regular income stream from their deposit.

FD Interest and Taxation

Interest earned on a fixed deposit is generally taxable according to applicable income tax rules, typically added to your total income and taxed at your slab rate. Banks and financial institutions may deduct TDS (tax deducted at source) once your interest income crosses a specified threshold in a financial year, and separate rules can apply to senior citizens or to Form 15G/15H declarations. Because thresholds, rates and rules can change from year to year, please check the latest guidance from the Income Tax Department or your bank rather than relying on any figure quoted here. This is general information, not personalized tax advice.

Premature FD Withdrawal

Most fixed deposits allow withdrawal before the maturity date, but this usually comes with a penalty, such as a reduced interest rate for the period the deposit was actually held. Some tax-saving fixed deposits carry a mandatory lock-in period during which withdrawal is not permitted at all. Exact penalty amounts, lock-in periods and withdrawal rules vary by institution and product, so it's important to review the specific terms and conditions before investing, especially if you may need access to the funds earlier than planned.

Senior Citizen FD

Many banks and NBFCs offer an additional interest rate for senior citizens on fixed deposits, on top of the standard rate. The exact additional rate, if any, and the eligibility criteria depend entirely on the institution and the specific FD product, so it's worth checking the current terms directly with the bank rather than assuming a fixed extra percentage applies everywhere.

How to Compare FD Options

Because interest rates and terms change frequently and vary by institution, this page does not publish a list of current bank rates. When comparing FD options, it's generally useful to look at:

• Interest rate offered for your specific tenure
• Tenure options and any minimum/maximum limits
• Compounding frequency used by the product
• Premature withdrawal rules and any applicable penalty
• Senior citizen or special-category rates, if applicable to you
• Tax treatment, including TDS and any lock-in requirements for tax-saving FDs
• Deposit insurance coverage, such as DICGC protection in India, and what it actually covers
• Payout type — cumulative (paid at maturity) versus non-cumulative (periodic payout)

In India, bank deposits are generally covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a specified limit per depositor per bank, covering principal and interest together. Coverage limits and rules can be updated by the regulator, so confirm the current limit on DICGC's official website rather than relying on a fixed figure here — deposit insurance also does not mean every rupee in every situation is automatically protected regardless of amount or institution.

FD vs Other Savings and Investment Options

A savings account offers high liquidity and typically a lower interest rate than an FD, suiting money you may need at short notice. A Recurring Deposit (RD) is similar to an FD but built around regular monthly contributions rather than a single lump sum. SIPs in mutual funds invest in market-linked instruments and can potentially offer higher long-term growth, but with returns that are not fixed and can go up or down with the market. Government-backed savings schemes, where applicable, may offer their own fixed rates and tax treatment. There is no universally "best" option — the right choice depends on your liquidity needs, time horizon, risk tolerance and tax situation, and many people use a mix of these depending on their goals.