🏦 FD Calculator

Calculate your fixed deposit maturity value, total interest earned and effective annual yield instantly. Uses quarterly compounding — the exact method Indian banks use for FDs.

Deposit Amount (₹) Annual Interest Rate (%)

Deposit Tenure

Compounding Frequency

About the FD Calculator

A Fixed Deposit (FD) is the most trusted savings instrument in India: you deposit a lump sum with a bank for a fixed tenure, and the bank pays a guaranteed interest rate. Our FD calculator shows you the exact maturity value before you invest, using the same quarterly-compounding method your bank will use.

FD Formula Used

We use the standard compound interest formula Indian banks apply to fixed deposits:

A = P × (1 + r/(100×n))^n×t

A = Maturity value
P = Principal (deposit amount)
r = Annual interest rate (%)
n = Compounding frequency per year (4 = quarterly)
t = Tenure in years

Why Quarterly Compounding Matters

Indian banks do not pay simple interest on FDs. Interest is added to your deposit every quarter, and from the next quarter you earn interest on the interest too. That is why the effective annual yield is always a little higher than the headline rate: a 7% FD compounded quarterly actually yields 7.19% per year. On ₹1,00,000 at 7% for 5 years, compounding frequency alone changes the maturity value like this:

Yearly compounding	₹1,40,255
Half-yearly compounding	₹1,41,060
Quarterly compounding (bank standard)	₹1,41,478
Monthly compounding	₹1,41,763

Worked Example

Suppose you deposit ₹1,00,000 in an FD at 7% for 5 years with quarterly compounding. Applying the formula: A = 1,00,000 × (1 + 7/400)²⁰ = ₹1,41,478. You earn ₹41,478 in interest, and your effective annual yield is 7.19% — not 7%. Try it above: set the amount to 100000, rate to 7%, tenure to 5 years and compounding to Quarterly, and the calculator returns the same figures.

Current Bank FD Rates in India (Indicative)

For general (non-senior) deposits of 1–5 years, major banks currently offer roughly 6.5%–7.25%. Treat the ranges below as indicative only — banks revise rates often and special-tenure schemes (like 444-day or 777-day FDs) may pay more. Always check the bank's official rate card before investing.

SBI	~6.50% – 7.10%
HDFC Bank	~6.60% – 7.25%
ICICI Bank	~6.60% – 7.25%
Bank of India	~6.50% – 7.15%

Senior Citizens Earn 0.50% Extra

Depositors aged 60 and above get an additional 0.50% per annum at most banks. The difference is not trivial: the same ₹1,00,000, 5-year FD at 7.50% instead of 7% matures at ₹1,44,995 — about ₹3,517 extra. If you are investing for your parents, book the FD in the senior citizen's name (as first holder) to claim this benefit.

TDS on FD Interest — What Gets Deducted

FD interest is fully taxable at your slab rate under "Income from Other Sources". Separately, as per current rules, the bank deducts TDS at 10% if your total FD interest with that bank crosses ₹50,000 in a financial year — the threshold is ₹1,00,000 for senior citizens. Without a PAN on record, TDS jumps to 20%. TDS is only an advance tax: if your total income is below the taxable limit, submit Form 15G (or 15H for seniors) to avoid deduction, or claim it back when filing your ITR. Thresholds change with Union Budgets, so verify the current position before relying on these figures.

Breaking an FD Early

Need the money before maturity? Banks allow premature withdrawal, but you are paid interest at the rate that applied to the period your money actually stayed — minus a penalty of typically 0.5%–1%. Breaking a 5-year FD after 1 year therefore earns roughly the 1-year rate minus the penalty. If you may need the funds early, split the deposit into a ladder of shorter FDs instead of one long FD.

FD vs RD — Which One Fits You?

An FD invests a lump sum you already have, and every rupee works for the full tenure. A Recurring Deposit (RD) builds the corpus month by month — each monthly instalment earns interest only for the remaining tenure, so the same total outlay earns less in an RD than in an FD. Use an FD for bonuses, matured policies or sale proceeds sitting idle; use an RD to build a goal corpus from salary. Planning a loan instead of a deposit? Compare with our EMI Calculator, and read the EMI guide to see how interest costs you on the borrowing side.

How to Use 🏦 FD Calculator

Step 1: Enter Deposit Amount
Input the lump sum you plan to invest (e.g., 1,00,000 for ₹1 lakh).
Step 2: Set Interest Rate
Use the slider to set the annual rate your bank offers. Add 0.50% if the depositor is a senior citizen.
Step 3: Choose Tenure
Enter the deposit tenure and select Years or Months.
Step 4: Keep Compounding on Quarterly
Indian banks compound FD interest quarterly — leave this as Quarterly for a bank-accurate result.
Step 5: Click Calculate FD
See your maturity value, total interest earned and effective annual yield instantly.

Frequently Asked Questions

How is FD interest calculated in India?

Indian banks calculate FD interest with quarterly compounding using A = P × (1 + r/(100×n))^(n×t), where P is the deposit, r is the annual rate, n is 4 for quarterly compounding and t is the tenure in years. The interest earned each quarter is added to the principal, so later quarters earn interest on a bigger amount.

Why do banks use quarterly compounding for FDs?

Quarterly compounding is the standard convention followed by Indian banks for fixed deposits. Because interest is credited every 3 months and starts earning interest itself, the effective annual yield is slightly higher than the quoted rate — for example, a 7% FD compounded quarterly actually yields about 7.19% per year.

Is FD interest taxable?

Yes. FD interest is added to your income under 'Income from Other Sources' and taxed at your income tax slab rate. Separately, the bank deducts TDS — it is not an extra tax, just an advance collection you can adjust or claim as a refund when filing ITR.

When does a bank deduct TDS on FD interest?

As per current rules, banks deduct TDS at 10% when the total FD interest in a financial year exceeds ₹50,000 (₹1,00,000 for senior citizens). If you have not given your PAN, TDS is deducted at 20%. Tax rules change with budgets, so verify the current threshold before relying on it.

How much extra interest do senior citizens get on FDs?

Most Indian banks pay senior citizens (age 60+) an additional 0.50% per annum over the general rate. On a ₹1,00,000 deposit for 5 years at 7% compounded quarterly, that extra 0.50% adds about ₹3,517 — the maturity value rises from ₹1,41,478 to ₹1,44,995.

What happens if I break my FD before maturity?

The bank pays interest at the rate applicable for the period the deposit actually stayed, minus a premature withdrawal penalty — typically 0.5% to 1% lower than that rate. For example, breaking a 5-year FD after 1 year usually earns you roughly the 1-year rate minus the penalty, not the 5-year rate.

What is the difference between an FD and an RD?

In an FD you deposit a lump sum once and it grows for the full tenure. In an RD you deposit a fixed amount every month, and each instalment earns interest only from the month it is paid. FDs suit money you already have; RDs suit building a corpus from monthly savings.