FD Calculator

A fixed deposit (FD) is a savings instrument where you deposit a lump sum with a bank for a fixed term at a fixed interest rate. In return for locking your money away, you earn a higher, guaranteed rate than a regular savings account. It's one of the most popular low-risk investments because the return is predictable and the principal is secure.

The maturity amount depends on four things: the deposit amount, the interest rate, the tenure, and how often the interest compounds. Most banks compound FD interest quarterly, meaning interest is calculated and added to your balance every three months, after which it too starts earning interest. The formula is maturity = P × (1 + r/n)^(n×t), where P is the principal, r is the annual rate, n is the number of compounding periods per year, and t is the tenure in years. For example, ₹1,00,000 deposited at 7% for 5 years with quarterly compounding matures to about ₹1,41,500 — roughly ₹41,500 of interest.

More frequent compounding produces a slightly higher maturity value for the same rate, which is why it's worth checking whether a bank compounds quarterly, half-yearly or annually when comparing FDs. The rate itself is the biggest factor, and rates vary by bank, tenure, and whether you're a senior citizen (who often get a small bonus rate).

A couple of practical points. FD interest is generally taxable as income, so your post-tax return will be lower than the headline figure — and banks may deduct tax at source (TDS) above a threshold. Breaking an FD before maturity usually incurs a penalty and a lower rate, so only lock away money you won't need. For savers who want regular income rather than a lump sum at the end, many banks also offer FDs that pay interest out monthly or quarterly. Use this calculator to compare maturity values across banks and tenures before you commit.