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FD Calculator

Calculate Fixed Deposit maturity value and interest earned — free, instant, no signup required.

Fixed Deposit Calculator
Maturity Value
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Principal
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Total Interest
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What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is a financial instrument offered by banks, post offices, and Non-Banking Financial Companies (NBFCs) where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. The interest rate does not change during the tenure regardless of market movements, making FDs one of the safest and most predictable savings instruments available in India.

FDs are widely used by risk-averse investors who prefer capital protection and guaranteed returns. They are offered for tenures ranging from 7 days to 10 years, with higher rates typically offered for medium-term deposits (1–3 years).

FD Calculation Formula

The maturity value of a Fixed Deposit using compound interest is:

A = P × (1 + r / (n × 100))^(n × t)

Where:
  A = Maturity amount (₹)
  P = Principal amount deposited (₹)
  r = Annual interest rate (%)
  n = Number of compounding periods per year (1=Yearly, 2=Half-Yearly, 4=Quarterly, 12=Monthly)
  t = Tenure in years

For example, a deposit of ₹1,00,000 at 7% p.a. compounded quarterly for 5 years yields: A = 1,00,000 × (1 + 7/(4×100))^(4×5) = 1,00,000 × (1.0175)^20 ≈ ₹1,41,478. The interest earned is ₹41,478.

Cumulative vs Non-Cumulative FD

  • Cumulative FD: The interest is compounded and reinvested throughout the tenure. You receive the full maturity amount (principal + accumulated interest) only at the end. This is suitable for long-term wealth building and is what this calculator models.
  • Non-Cumulative FD: Interest is paid out periodically — monthly, quarterly, half-yearly, or annually — rather than reinvested. The payout goes into your savings account. This is suited for retirees or anyone needing regular income from their deposit.

Tax on FD Interest

Interest earned on Fixed Deposits is fully taxable as "income from other sources" and is added to your total taxable income for the financial year. Key points:

  • TDS: Banks deduct TDS (Tax Deducted at Source) at 10% if the interest from a single bank exceeds ₹40,000 per year (₹50,000 for senior citizens) in a financial year. If your PAN is not linked, TDS is deducted at 20%.
  • Form 15G/15H: If your total income is below the taxable limit, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to request that the bank not deduct TDS.
  • 5-year tax-saving FD: Investments in 5-year tax-saving FDs qualify for Section 80C deduction up to ₹1.5 lakh per year. However, the interest earned is still taxable.

Premature Withdrawal

Most banks allow premature withdrawal of an FD before its maturity date. However, a penalty is typically levied — usually 0.5% to 1% below the contracted interest rate. The penalty applies to the rate applicable for the actual period the deposit was held. Some banks offer penalty-free sweep-in FDs or flexi-deposits that allow partial withdrawal without penalty.

Advantages of Fixed Deposits

  • Capital safety: FDs with scheduled commercial banks are covered by DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance up to ₹5 lakh per depositor per bank.
  • Guaranteed returns: The interest rate is locked at the time of booking. Even if market rates fall, your FD continues to earn the contracted rate.
  • Higher rates for senior citizens: Banks offer 0.25% to 0.5% additional interest to senior citizens (age 60+) over the regular FD rate.
  • Loan against FD: You can avail a loan or overdraft against your FD (typically up to 90% of the FD value) at a rate marginally higher than your FD rate, without breaking the deposit.
  • Flexible tenures: FDs are available from 7 days to 10 years. You can choose a tenure that aligns with your financial goal timeline.

Frequently Asked Questions

Compounding frequency determines how often the interest earned is added back to the principal and begins earning interest itself. More frequent compounding results in a slightly higher effective annual yield. For instance, at 7% p.a. on ₹1 lakh for 5 years: yearly compounding gives ₹1,40,255; quarterly compounding gives ₹1,41,478; monthly compounding gives ₹1,41,763. While the difference appears small, it becomes more significant with higher amounts and longer tenures. Most Indian banks compound FD interest quarterly by default.
Yes, FD interest is fully taxable. It is added to your total income and taxed at your applicable slab rate. Banks deduct TDS at 10% when the annual interest from a single bank exceeds ₹40,000 (₹50,000 for senior citizens). If your total income is below the taxable threshold, submit Form 15G (below 60 years) or Form 15H (60 years and above) to avoid TDS deduction. Even if TDS is not deducted (because you submitted Form 15G/15H), you must still declare the interest income in your income tax return.
Yes, most banks allow premature withdrawal of FDs. A penalty of 0.5% to 1% is typically applied to the applicable rate — meaning you earn interest at the rate for the actual duration held, minus the penalty. For example, if you book a 5-year FD at 7% but break it after 2 years when the 2-year rate was 6%, you might receive 6% minus 0.5% = 5.5% for 2 years. Some banks waive premature withdrawal penalties for senior citizens. Tax-saving 5-year FDs under Section 80C cannot be withdrawn before 5 years.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits in all scheduled commercial banks and cooperative banks up to ₹5 lakh per depositor per bank. This limit covers the combined total of all deposits held across all branches of the same bank — including savings accounts, current accounts, FDs, RDs, and any other deposits. The ₹5 lakh limit was revised from ₹1 lakh in February 2020. If you hold FDs worth more than ₹5 lakh in a single bank, spreading across multiple banks provides additional deposit insurance protection.