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What is a Fixed Deposit (FD) Calculator?
A Fixed Deposit (FD) is one of the safest investment options in India, offered by banks and NBFCs like SBI, HDFC, ICICI, and Post Office schemes. You deposit a lump sum for a fixed tenure at a fixed interest rate, and the bank pays you back the principal plus interest at maturity. This FD Calculator instantly shows your maturity amount and total interest earned, based on quarterly compounding — the method most Indian banks use.
FD Maturity Formula
Banks in India typically compound FD interest quarterly. The formula used is:
Where A = Maturity amount, P = Principal (deposit amount), r = Annual interest rate (as a decimal), and t = Tenure in years.
Worked Example
Suppose you deposit ₹1,00,000 in a bank FD at 7.5% p.a. for 3 years, compounded quarterly:
- Principal: ₹1,00,000
- Maturity Amount: ≈ ₹1,24,988
- Interest Earned: ≈ ₹24,988
This is noticeably higher than simple interest (which would give only ₹22,500 interest over the same period) because quarterly compounding lets your interest earn interest too.
How to Use This Calculator
- Enter your deposit amount (Principal) in rupees.
- Enter the interest rate offered by your bank (usually 6.5%–8% p.a. for a regular FD, higher for senior citizens).
- Enter the tenure in years.
- Click Calculate to instantly see your maturity amount and interest earned.
Things to Know About FDs in India
- TDS: Banks deduct 10% TDS if your total FD interest exceeds ₹40,000/year (₹50,000 for senior citizens) in a financial year.
- Premature withdrawal: Most banks charge a 0.5%–1% penalty on the interest rate if you break the FD early.
- Senior Citizen FDs: Banks usually offer 0.25%–0.75% higher interest rates for senior citizens.
- Tax-saving FD: A 5-year tax-saving FD qualifies for deduction under Section 80C (up to ₹1.5 lakh), but the interest earned is still taxable.
Also check our RD Calculator if you'd rather invest monthly instead of a lump sum, or the Compound Interest Calculator for general compounding math.
More Worked Examples Across Deposit Sizes
FD returns scale predictably with amount and tenure, so it helps to see a few real scenarios. A smaller FD of ₹50,000 at 6.5% p.a. for 1 year matures to about ₹53,330, giving interest of roughly ₹3,330 — a useful parking spot for short-term savings goals like a festival fund. A larger deposit of ₹2,00,000 at 7% p.a. for 5 years grows to approximately ₹2,82,956, earning about ₹82,956 in interest — noticeably more than the ₹70,000 simple interest would give over the same period, purely because of quarterly compounding. At the higher end, a ₹10,00,000 FD at 7.25% p.a. for 7 years — a common tenure for retirees seeking a long, predictable income stream — matures to roughly ₹16.54 lakh, with interest of about ₹6.54 lakh, though note that TDS will apply well before maturity once annual interest crosses the ₹40,000 (or ₹50,000) threshold each year.
FD vs Other Fixed-Income Options
An FD isn't the only safe, fixed-return option available to Indian savers. The Public Provident Fund (PPF) currently offers a government-set rate (revised quarterly) that's usually 0.25%-1% higher than bank FDs, plus fully tax-free interest under the EEE (Exempt-Exempt-Exempt) structure — but it locks your money for 15 years with only partial withdrawal allowed after year 7. Post Office schemes like the National Savings Certificate (NSC) offer FD-like rates with an 80C deduction similar to a tax-saving FD. Corporate deposits and NBFC FDs sometimes offer 0.5%-1.5% higher rates than bank FDs to compensate for the marginally higher credit risk, so it's worth checking the credit rating (AAA-rated deposits are safest) before chasing a higher headline number. For most conservative savers wanting simplicity, liquidity options, and deposit insurance (DICGC covers up to ₹5 lakh per depositor per bank), a straightforward bank FD compared here remains the most practical choice.
Who Should Use This Calculator
This calculator is ideal for conservative investors — retirees relying on interest income, individuals parking emergency funds, or anyone comparing bank FD rates from SBI, HDFC, ICICI, or small finance banks before locking in a lump sum. It's particularly useful for senior citizens deciding between regular and senior-citizen FD schemes (which typically pay 0.25%-0.75% extra), and for taxpayers evaluating a 5-year tax-saving FD against other Section 80C options like PPF or ELSS. Because Indian banks almost universally compound FD interest quarterly rather than annually, this tool is more accurate for real-world bank FDs than a generic compound interest calculator using annual compounding — always confirm the specific bank's compounding frequency from your FD receipt, since some corporate or NBFC deposits compound differently.
Frequently Asked Questions
Q: How often do Indian banks compound FD interest?
A: Most Indian banks compound FD interest quarterly, which is what this calculator uses by default. Some post office and NBFC schemes may compound annually or offer cumulative vs. non-cumulative options — always check your FD receipt or scheme document, since the compounding frequency directly affects your final maturity amount even at the same headline rate.
Q: Is FD interest taxable in India?
A: Yes, FD interest is fully taxable as "income from other sources" at your applicable income tax slab rate. Banks deduct TDS at 10% if your total interest from that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens); if your PAN isn't linked, TDS jumps to 20%. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Q: What is a tax-saving FD and how is it different from a regular FD?
A: A tax-saving FD has a mandatory 5-year lock-in and qualifies for a Section 80C deduction of up to ₹1.5 lakh on the deposit amount. However, unlike PPF, the interest earned on a tax-saving FD is still fully taxable, and premature withdrawal is generally not allowed except in specific circumstances like the depositor's death.
Q: What penalty applies if I break my FD before maturity?
A: Most banks charge a penalty of 0.5% to 1% reduction in the interest rate applicable for the period the deposit was actually held, not the originally booked rate. So breaking a 3-year FD after 1 year means you earn roughly the 1-year rate minus the penalty, not the higher 3-year rate you were initially promised.
Q: Do senior citizens get a better FD rate, and is there a special tax benefit?
A: Yes, banks typically offer 0.25% to 0.75% higher interest on FDs for senior citizens (60+ years). Additionally, senior citizens can claim a deduction of up to ₹50,000 on interest income (including FD interest) under Section 80TTB, compared to just ₹10,000 under Section 80TTA available to non-seniors only on savings account interest.
📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.