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FD Calculator

FD Details

₹10,000₹1,00,00,000
1%15%
years
1 year10 years

Maturity Summary

Maturity Amount₹7,07,389
Principal
Interest

Principal Amount

₹5,00,000

Total Interest

₹2,07,389

Maturity Amount

₹7,07,389

Effective Rate

7.19%

What is FD Calculator, and How Does it Help You

Fixed Deposits (FDs) are one of the most popular low-risk investment options in India, offering guaranteed returns over a selected tenure. Banks offer higher interest rates on FDs compared to standard savings accounts, making them ideal for capital preservation and planning fixed returns.

The FD Calculator helps you estimate the maturity amount and the total interest earned on your fixed deposit. It supports quarterly compounding, which is the standard banking practice.

Guaranteed Returns Check

Instant calculation of interest earnings and final maturity value based on fixed interest rates.

Senior Citizen Benefit

Adjust interest rates to factor in the higher rates (usually 0.5% extra) offered to senior citizens.

Flexible Payout Planning

Simulate returns for cumulative growth FDs (interest paid at maturity) or non-cumulative payouts.

How Does the FD Calculator Work?

The FD Calculator uses the compound interest formula adjusted for quarterly compounding intervals.

A = P * (1 + r / 4)^(4 * t)

A: Final maturity amount
P: Principal deposit amount
r: Annual interest rate (as a decimal)
t: Tenure of the fixed deposit in years

If you open an FD of ₹1,00,000 at 7% p.a. for a tenure of 5 years, compounding quarterly, the calculator computes: A = 1,00,000 * (1 + 0.07 / 4)^(4 * 5) = 1,00,000 * (1.0175)^20 = ₹1,41,478. The interest earned is ₹41,478.

How to Use FD Calculator

Using the FD Calculator is extremely simple and takes just a few seconds. Follow these steps:

1

Enter Principal Amount

Type in the amount you wish to invest in the fixed deposit.

2

Set Interest Rate

Input the annual interest rate offered by the bank for the chosen tenure.

3

Choose Tenure

Specify the deposit duration in years, months, or days to see the maturity value.

Advantages of Using FD Calculator

✓ Risk-Free Returns View

Know the exact maturity proceeds of your investment, backed by bank guarantees.

✓ Goal Alignment

Match FDs to specific short-term goals (like a vacation or downpayment) with precise figures.

✓ Tax Saving FD Analysis

Evaluate 5-year tax-saving FDs to check return yields under Section 80C.

✓ Compare Bank Offers

Easily compare rates from multiple banks to secure the highest FD yield.

Frequently Asked Questions

Fixed Deposit (FD) is a savings instrument where you deposit a lump sum with a bank or NBFC for a fixed period at a predetermined interest rate. The bank pays you interest on your deposit, which is compounded quarterly in most cases. At maturity, you receive your principal plus accumulated interest. FDs are considered very safe as they are not affected by market fluctuations.
FD interest is calculated using compound interest formula: A = P(1 + r/n)^(nt), where P = Principal, r = Annual interest rate, n = Compounding frequency (4 for quarterly), t = Time in years. For example, ₹1 lakh at 7% for 5 years with quarterly compounding = ₹1,00,000 × (1 + 0.07/4)^(4×5) = ₹1,41,478.
Simple interest is calculated only on principal: SI = P × R × T / 100. Compound interest is calculated on principal plus accumulated interest. Most bank FDs use quarterly compounding, which gives higher returns than simple interest. For example, ₹1 lakh at 7% for 3 years: Simple Interest = ₹21,000, Compound Interest (quarterly) = ₹23,144.
FD tenure varies by bank: Minimum is typically 7 days to 14 days, Maximum ranges from 10 years to 20 years. Most popular tenures are 1 year, 2 years, 3 years, and 5 years. For tax-saving FD under Section 80C, the mandatory lock-in period is 5 years.
Yes, FD returns are guaranteed at the rate fixed at the time of deposit. Unlike mutual funds or stocks, FD interest rates don't change with market conditions. However, if you break the FD prematurely, you may get a lower rate. Bank deposits up to ₹5 lakh are insured by DICGC (Deposit Insurance).
Premature withdrawal typically results in: (1) Lower interest rate – usually 0.5-1% less than the original rate, (2) Penalty of 0.5-1% may be charged by some banks, (3) Interest is recalculated at the lower rate for the actual period. Some banks offer penalty-free premature withdrawal on specific FD products.
FD interest is fully taxable as "Income from Other Sources" at your income tax slab rate. TDS is deducted at 10% if interest exceeds ₹40,000/year (₹50,000 for senior citizens). If PAN is not provided, TDS is 20%. You can submit Form 15G (or 15H for seniors) to avoid TDS if your total income is below taxable limit.
Tax-Saving FD is a 5-year fixed deposit that qualifies for deduction under Section 80C up to ₹1.5 lakh per year. Key features: (1) Lock-in period of 5 years – no premature withdrawal allowed, (2) No loan against this FD, (3) Only the principal qualifies for 80C deduction – interest is still taxable.
Yes, most banks offer 0.25% to 0.50% additional interest to senior citizens (60+ years). Some banks offer up to 0.75% extra for super senior citizens (80+ years). The higher TDS threshold of ₹50,000 also benefits seniors with larger deposits.
Yes, banks offer loans/overdraft against FD up to 90-95% of the deposit value at interest rates 1-2% above the FD rate. Benefits: (1) Quick processing, minimal documentation, (2) FD continues to earn interest, (3) Lower interest than personal loans, (4) No need to break FD. Not available for tax-saving FDs.
Cumulative FD: Interest is compounded and paid at maturity along with principal. Best for wealth creation. Non-cumulative FD: Interest is paid out periodically (monthly/quarterly/yearly). Best for regular income, often chosen by retirees. Cumulative FDs give slightly higher effective returns due to compounding.
FD is ideal when you want: (1) Guaranteed, risk-free returns, (2) Capital preservation, (3) Short to medium-term goals (1-5 years). Consider other options for: (1) Long-term goals (10+ years) – equity mutual funds may give higher returns, (2) Inflation beating returns – debt funds, PPF, (3) Tax efficiency – ELSS, PPF have better tax treatment.