How to use the FD Calculator
- Enter the deposit amount and the interest rate offered by your bank.
- Set the tenure in years and months and pick the compounding frequency.
- Read the maturity value, interest earned and the year-by-year table.
About this tool
Most Indian banks compound fixed deposit interest every quarter. The maturity value is A = P × (1 + r/n)n × t, where P is the deposit, r the yearly rate (as a decimal), n the number of compounding periods a year (4 for quarterly) and t the tenure in years. For example, ₹1,00,000 at 7% for 5 years grows to about ₹1,41,478 — ₹41,478 of interest.
FD rates differ from bank to bank and change often, so enter the rate your bank quotes today. Senior citizens usually get an extra 0.25%–0.50%; tick the box and set the extra rate. FD interest is added to your income and taxed at your slab rate, and banks deduct TDS once a year’s interest crosses the threshold (₹50,000, or ₹1,00,000 for senior citizens, from FY 2025-26) unless you submit Form 15G/15H where eligible.
Frequently asked questions
What is the maturity value of ₹1 lakh FD at 7% for 5 years?
With quarterly compounding it is about ₹1,41,478, so you earn roughly ₹41,478 in interest before tax.
Why is the effective yield higher than the FD rate?
Because interest is compounded every quarter, interest also earns interest. A 7% FD compounded quarterly gives an effective yearly yield of about 7.19%.
Is FD interest taxable?
Yes. It is added to your income and taxed at your slab rate, whether you take it out or let it compound.
Does this match my bank exactly?
It is very close for most tenures. Banks may use exact days, simple interest for short tenures, or pay interest out monthly or quarterly, which can change the figure slightly.