Written by Sagar Kumar Last updated: 21 August 2026
Fixed Deposits are one of the safest ways to grow savings at a guaranteed rate. This calculator shows exactly how much your FD will be worth at maturity and how much interest you will earn.
🏦 FD Calculator (Fixed Deposit)
Maturity Amount-
Total Interest-
Principal-
Effective Annual Rate-
How to Use This FD Calculator (Fixed Deposit)
Enter the deposit amount (e.g. ₹1,00,000).
Enter the yearly interest rate offered by your bank (e.g. 7%).
Enter the tenure in years and tap Calculate.
Formula
Maturity = P × (1 + r/n)^(n×t), where P = principal, r = yearly rate, n = compounding frequency (usually 4 for quarterly), t = years.
Example: ₹1,00,000 at 7% for 5 years with quarterly compounding grows to about ₹1,41,478 — interest earned ≈ ₹41,478.
Frequently Asked Questions
▶ How is FD interest compounded?
Most Indian banks compound FD interest quarterly. This means interest is added to your principal every 3 months and then earns further interest.
▶ Is FD interest taxable?
Yes, FD interest is added to your income and taxed at your slab rate. Banks deduct TDS if interest exceeds the yearly threshold; you can submit Form 15G/15H if your income is below the taxable limit.
▶ FD vs SIP — which is better?
FDs give guaranteed, fixed returns and suit short-term or safety-first goals. SIPs in equity funds carry market risk but have historically given higher long-term returns. Many people use both.
▶ Can I withdraw an FD early?
Yes, but premature withdrawal usually attracts a penalty of 0.5–1% on the interest rate. Check your bank's rules before breaking an FD.
📖 FD को और अच्छे से समझें
FD और SIP में कौन बेहतर है, रिटर्न-जोखिम की तुलना — पूरी जानकारी पढ़ें:
₹5,00,000 deposited at 7% for 5 years, compounded quarterly:
Item
Amount
Principal
₹5,00,000
Maturity value
₹7,07,389
Interest earned
₹2,07,389
Effective annual yield
7.19%
The effective yield exceeds the headline 7% because quarterly compounding adds interest to the balance four times a year.
FD returns at different rates and tenures
On a ₹5,00,000 deposit, quarterly compounding:
Rate
1 year
3 years
5 years
10 years
6.0%
₹5,30,678
₹5,97,817
₹6,73,431
₹9,07,038
6.5%
₹5,33,278
₹6,06,809
₹6,90,553
₹9,53,326
7.0%
₹5,35,891
₹6,15,948
₹7,07,389
₹10,01,782
7.5%
₹5,38,516
₹6,25,236
₹7,25,976
₹10,54,323
8.0%
₹5,41,154
₹6,34,674
₹7,44,335
₹11,08,050
Tax on FD interest — the part people forget
FD interest is fully taxable at your income tax slab rate. This changes the picture materially:
Your slab
Headline 7% FD
After-tax return
Real return (6% inflation)
0% (below limit)
7.0%
7.0%
+1.0%
5%
7.0%
6.65%
+0.65%
20%
7.0%
5.60%
−0.40%
30%
7.0%
4.90%
−1.10%
In the 20% and 30% slabs, a 7% FD loses purchasing power once inflation is accounted for. The rupee number always rises, which is why FDs feel safe — but what that money can buy quietly shrinks.
That isn't an argument against FDs. It's an argument for using them for what they're good at: money you need within a few years, and the stable portion of a portfolio. For long-horizon goals, growth assets do the heavy lifting.
TDS
Banks deduct TDS once your annual interest crosses the threshold, at a higher rate if PAN isn't provided. TDS is not your final liability — if you're in a higher slab you still owe the difference at filing. If your total income is below the taxable limit, submit Form 15G (or 15H for senior citizens) at the start of the year.
Types of FD worth knowing about
Cumulative — interest compounds and is paid at maturity. Best for growth.
Non-cumulative — interest paid out monthly or quarterly. Suits retirees needing income, but nothing compounds.
Tax-saving FD — five-year lock-in, qualifies under Section 80C in the old regime. No premature withdrawal.
Senior citizen FD — typically 0.25–0.75% higher rate.
Flexi / sweep-in FD — linked to your savings account, sweeping surplus balance into a deposit automatically.
Deposit insurance: bank deposits are insured up to ₹5 lakh per depositor per bank, covering principal and interest together. If you hold large sums, spreading across banks keeps everything within cover.
Common mistakes
Comparing FD rates without checking compounding frequency — quarterly beats annual at the same headline rate.
Ignoring tax. Compare after-tax returns, especially against PPF, which is tax-free.
Breaking an FD early and losing 0.5–1% as penalty. Laddering across several smaller FDs avoids this.
Keeping more than ₹5 lakh at one bank without considering deposit insurance limits.
Using FDs for a 20-year goal, where inflation erodes most of the real gain.
Forgetting to submit Form 15G/15H when eligible, then waiting for a refund.
More questions
▶ Is FD interest taxable?
Yes, fully, at your income tax slab rate. Banks deduct TDS once annual interest crosses the threshold, but that is not the final liability if you are in a higher slab.
▶ How often do banks compound FD interest?
Most cumulative fixed deposits compound quarterly, which is why the effective annual yield is slightly higher than the headline rate.
▶ What is the penalty for breaking an FD early?
Typically 0.5–1% off the applicable rate, and you receive the rate for the period actually completed rather than the original booked rate.
▶ Are FDs safe?
Bank deposits are insured up to ₹5 lakh per depositor per bank, covering principal and interest. Spreading larger amounts across banks keeps everything within cover.
▶ FD or PPF — which is better?
PPF interest is tax-free and generally beats an FD after tax, but it locks money for 15 years. FDs are liquid and flexible. Many people use both for different purposes.
▶ Do senior citizens get higher FD rates?
Yes, usually 0.25–0.75% above the standard rate at most banks.
▶ How do I avoid TDS on FD interest?
If your total income is below the taxable limit, submit Form 15G, or Form 15H if you are a senior citizen, at the start of the financial year.
