Calculate your fixed deposit maturity amount and interest earned. Compare monthly, quarterly and annual compounding across Indian banks.
A Fixed Deposit (FD) calculator helps Indian depositors estimate the maturity value and total interest earned on a bank fixed deposit. You simply enter the deposit amount, the interest rate offered by the bank, the tenure, and the compounding frequency, and the calculator instantly shows the exact amount you will receive at maturity.
Fixed deposits are among the most popular and safest investment options in India, offered by banks, post offices, and NBFCs. Interest rates on bank FDs currently range from about 6.0% to 7.5% for general citizens, with senior citizens typically getting 0.50% to 0.75% higher rates. Understanding your FD returns before investing helps you compare different banks and pick the best option for your financial goals.
FD interest in India is compounded at the frequency chosen by the bank, using the compound interest formula:
Maturity = P × (1 + r/n)nt
Where: P = principal, r = annual interest rate (decimal), n = compounding frequency per year, t = tenure in years.
Most Indian banks compound FD interest quarterly, which yields slightly more than simple interest. This calculator uses the actual bank-style compounding formula so your results match what the bank calculates.
Yes. Interest earned on fixed deposits is added to your total income and taxed as per your income tax slab. If the total interest earned across all FDs exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank deducts TDS at 10% (or 20% if PAN not provided). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Monthly compounding gives the highest returns, followed by quarterly, half-yearly, and yearly. However, most Indian banks compound FDs quarterly. The effective yield difference between quarterly and monthly compounding is small (about 0.05-0.1% annually), so the practical difference for most depositors is minimal.
Yes, most banks allow premature withdrawal of FDs, but typically charge a penalty (usually 0.5% to 1% of the interest rate) and pay a lower interest rate for the period the deposit was held. Some banks also have a minimum lock-in period. Senior citizen FDs and tax-saving FDs (5-year lock-in under Section 80C) have more restrictive premature withdrawal rules.