Calculators
FD Calculator
Last updated 17 June 2026The interactive FD calculator runs on this page. Open the calculator ↑
Key Takeaways
- An FD pays a fixed, pre-agreed interest rate for a chosen tenure — returns are known in advance, unlike market-linked investments.
- Most Indian banks compound FD interest quarterly. ₹1,00,000 at an assumed 7% for 5 years grows to about ₹1,41,478 with quarterly compounding.
- Compounding frequency matters a little: the same deposit earns slightly more when compounded monthly or quarterly than annually.
- Senior citizens usually get a higher rate — commonly around 0.25%–0.75% more than the general public, depending on the bank.
- FD interest is fully taxable at your income-tax slab rate, and banks deduct TDS once interest crosses the annual threshold (₹50,000 general / ₹1,00,000 for senior citizens per bank, FY 2025-26).
What Is a Fixed Deposit?
A fixed deposit (FD) — also called a term deposit — is a deposit where you place a lump sum with a bank, NBFC or post office for a fixed tenure at a fixed interest rate. In return, the institution pays you a guaranteed rate of interest that does not change for the life of the deposit, regardless of what happens to market rates.
FDs come in two main forms:
- Cumulative FD: interest is reinvested (compounded) and paid together with the principal at maturity. This is what most "FD maturity" calculators, including this one, estimate.
- Non-cumulative FD: interest is paid out at regular intervals (monthly, quarterly, half-yearly or yearly) instead of being reinvested — useful for those who want a regular income, such as retirees.
FDs are popular in India because the return is predictable and the capital is generally safe. Bank deposits are also covered by DICGC deposit insurance up to ₹5,00,000 per depositor per bank (principal plus interest), which adds a layer of protection. The main trade-offs are lower long-term return potential than equity, and a penalty for breaking the FD early (premature withdrawal).
How FD Interest Is Calculated
For a cumulative FD, interest is compounded — each period's interest is added to the principal, and the next period's interest is calculated on the larger balance. Indian banks most commonly compound quarterly (every three months).
For a non-cumulative FD, interest is calculated and paid out each period without being reinvested, so the principal stays the same throughout — this behaves like simple interest on the original amount.
This calculator estimates the cumulative (compound) maturity value, since that is what most savers want to know. You enter the amount, the interest rate, the tenure, and the compounding frequency, and it returns the maturity amount and the interest earned.
FD Interest Formula
The maturity value of a cumulative FD uses the standard compound-interest formula:
A = P × (1 + r ÷ n)^(n × t)
Where:
| Symbol | Meaning | Example |
|---|---|---|
| A | Maturity amount | ₹1,41,478 |
| P | Principal (amount deposited) | ₹1,00,000 |
| r | Annual interest rate (as a decimal) | 7% → 0.07 |
| n | Compounding frequency per year | Quarterly → 4 |
| t | Tenure in years | 5 |
Interest earned = A − P.
Worked Example
Let's calculate a ₹1,00,000 FD at an assumed 7% per year for 5 years, compounded quarterly.
Step 1 — Periodic rate (r ÷ n). 0.07 ÷ 4 = 0.0175
Step 2 — Number of periods (n × t). 4 × 5 = 20
Step 3 — Apply the formula. A = 1,00,000 × (1 + 0.0175)²⁰ A = 1,00,000 × (1.0175)²⁰ A = 1,00,000 × 1.41478 = ₹1,41,478
Step 4 — Interest earned. ₹1,41,478 − ₹1,00,000 = ₹41,478
So a ₹1 lakh deposit earns about ₹41,478 in interest over five years at this example rate. The calculator above does this instantly; the maths is shown so you can verify it. (7% is used purely as an example — your bank's current rate will differ.)
Simple Interest vs Compound Interest
The difference between simple and compound interest is what makes a cumulative FD worth more than a non-cumulative one over the same period.
- Simple interest is calculated only on the original principal: SI = P × r × t. For our example, that is 1,00,000 × 0.07 × 5 = ₹35,000.
- Compound interest is calculated on the principal plus accumulated interest. Quarterly compounding on the same FD gives ₹41,478.
| Method | Interest earned | Maturity value |
|---|---|---|
| Simple interest | ₹35,000 | ₹1,35,000 |
| Compound interest (quarterly) | ₹41,478 | ₹1,41,478 |
That is an extra ₹6,478 purely from compounding, on the same deposit at the same rate. A cumulative FD compounds; a non-cumulative FD (which pays interest out) effectively earns simple interest on the principal, because nothing is reinvested.
Compounding Frequency Impact
The more often interest is compounded, the slightly higher your maturity value, because interest starts earning interest sooner. The table keeps the deposit at ₹1,00,000 at an assumed 7% for 5 years and varies only how often it compounds.
| Compounding frequency | Maturity value | Interest earned |
|---|---|---|
| Annually | ₹1,40,255 | ₹40,255 |
| Half-yearly | ₹1,41,060 | ₹41,060 |
| Quarterly (most common) | ₹1,41,478 | ₹41,478 |
| Monthly | ₹1,41,754 | ₹41,754 |
The gap between annual and monthly compounding here is about ₹1,500 over five years — real, but modest. Most Indian banks compound FD interest quarterly, so that is the default to use unless your bank states otherwise.
Senior Citizen FD Rates
Banks in India typically offer senior citizens (aged 60 and above) a higher FD interest rate than the general public — commonly in the range of 0.25% to 0.75% extra, though the exact additional rate varies by bank and tenure.
To illustrate, on a ₹1,00,000, 5-year FD compounded quarterly:
| Depositor | Example rate | Maturity value | Interest earned |
|---|---|---|---|
| General public | 7.00% | ₹1,41,478 | ₹41,478 |
| Senior citizen | 7.50% | ₹1,44,995 | ₹44,995 |
In this example the senior-citizen rate earns about ₹3,517 more over five years. These rates are illustrative — check the current general and senior-citizen rates with the specific bank, as the extra rate and whether it applies to "super senior" citizens (80+) differ between banks.
TDS and Taxation Basics
This is the part savers most often misunderstand, so read it carefully.
FD interest is fully taxable. Interest earned on a fixed deposit is added to your income under "Income from Other Sources" and taxed at your applicable income-tax slab rate. This is true regardless of whether TDS is deducted.
TDS is not a separate or final tax — it is advance tax. The bank deducts Tax Deducted at Source (TDS) on your FD interest and deposits it with the government against your PAN. You then account for it when filing your Income Tax Return (ITR): if too much was deducted, you claim a refund; if your slab rate is higher, you pay the balance.
When does the bank deduct TDS? (FY 2025-26 thresholds):
| Depositor | Annual FD interest threshold (per bank) | TDS rate |
|---|---|---|
| General public (below 60) | ₹50,000 | 10% (with PAN) |
| Senior citizens (60+) | ₹1,00,000 | 10% (with PAN) |
| No PAN provided | — | 20% |
- The threshold is the total interest from that bank in a financial year (across all your FDs there), not per FD.
- These thresholds were raised in Budget 2025, effective 1 April 2025 (from ₹40,000 and ₹50,000 respectively). TDS thresholds are revised in the annual Union Budget, so confirm the current limit before relying on it.
- Form 15G / 15H: if your total income is below the taxable limit, you can submit Form 15G (general) or Form 15H (senior citizens) to the bank to request that no TDS be deducted.
- TDS being deducted does not mean your tax is settled — you must still report the interest in your ITR and pay any balance based on your slab.
Tax rules are complex and individual. This is general information, not tax advice — consult a qualified tax professional for your situation.
FD vs Savings Account
Both are safe, bank-based options, but they serve different purposes.
| Factor | Fixed Deposit | Savings Account |
|---|---|---|
| Interest rate | Higher, fixed for the tenure | Lower, variable |
| Liquidity | Locked in; penalty to break early | Fully liquid, withdraw anytime |
| Best for | Money you won't need for a set period | Day-to-day money and emergencies |
| Interest basis | Compounded (cumulative FD) | Calculated on daily balance, paid quarterly |
| Returns | Predictable | Lower and changeable |
A common approach is to keep an emergency buffer in a savings account for instant access, and place surplus money you don't need soon into FDs for the higher, locked-in rate. See our guide on savings account vs fixed deposit for a deeper comparison.
FD vs RD
A fixed deposit takes a single lump sum; a recurring deposit (RD) takes a fixed amount every month. Both are term deposits with similar safety and similar tax treatment.
| Factor | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| How you invest | One lump sum upfront | A fixed amount every month |
| Best suited to | A surplus you already have | Building savings from monthly income |
| Interest rate | Fixed for tenure | Fixed for tenure (similar to FD) |
| How interest works | Compounds on the whole amount from day one | Each instalment compounds for its remaining tenure |
| Total interest (same total amount) | Higher — full sum earns from the start | Lower — money is invested gradually |
| Taxation | Interest taxable at slab; TDS applies | Interest taxable at slab; TDS applies |
If you already have the money, an FD generally earns more because the whole sum compounds from day one. If you are saving from a monthly salary, an RD builds the habit. Estimate an RD with our RD calculator, or read the full FD vs RD guide.
Expert Verdict
"An FD does one job extremely well: it gives you a known, guaranteed return on money you can lock away, with capital protection backed by deposit insurance up to ₹5 lakh per bank. Use this calculator to see the maturity figure — but mentally subtract tax, because FD interest is taxed at your slab and that quietly lowers your real return, especially in higher brackets. Two practical tips: compound quarterly (the bank default) when modelling, and if you're a senior citizen, always ask for the senior-citizen rate and consider Form 15H if your income is below the taxable limit."
— The Tips4Banking Editorial Team · checked against primary sources before publishing
Frequently asked questions
How is FD interest calculated in India?
For a cumulative FD, interest is compounded — most commonly quarterly — using A = P × (1 + r/n)^(n×t). Each quarter's interest is added to the principal, so later interest is calculated on a growing balance. Non-cumulative FDs pay interest out periodically without compounding.
What is the maturity amount on a ₹1 lakh FD?
At an example rate of 7% for 5 years with quarterly compounding, a ₹1,00,000 FD matures to about ₹1,41,478 (₹41,478 interest). Your actual maturity depends on the bank's current rate and tenure — use the calculator above.
Do banks compound FD interest monthly or quarterly?
Most Indian banks compound FD interest quarterly. Some products may compound monthly or pay interest out (non-cumulative). More frequent compounding gives a slightly higher maturity value.
Is FD interest taxable?
Yes. FD interest is fully taxable as "Income from Other Sources" at your income-tax slab rate, whether or not TDS is deducted. You must report it in your ITR.
When does the bank deduct TDS on an FD?
A bank deducts 10% TDS (with PAN) once your total FD interest from that bank in a financial year crosses ₹50,000 for general depositors or ₹1,00,000 for senior citizens (FY 2025-26 thresholds). Without PAN, TDS is 20%.
Does paying TDS mean my FD tax is fully settled?
No. TDS is advance tax. If your slab rate is higher than 10%, you pay the balance when filing your ITR; if your total income is below the taxable limit, you can claim the TDS back as a refund.
How can I avoid TDS on my FD?
If your total income is below the taxable limit, submit Form 15G (general) or Form 15H (senior citizens) to your bank. This does not make the interest tax-free; it only stops TDS where no tax is due. You can also spread deposits so interest per bank stays under the threshold.
Do senior citizens get higher FD rates?
Yes, banks typically offer senior citizens (60+) about 0.25%–0.75% more than the general rate, varying by bank and tenure. Some banks offer an additional rate for super-senior citizens (80+).
What happens if I break my FD early?
Premature withdrawal usually attracts a penalty — typically a reduction of around 0.5%–1% on the applicable interest rate — and interest is recalculated for the period actually held. Exact penalties vary by bank.
Are fixed deposits safe?
Bank FDs are considered low-risk, and deposits are insured by DICGC up to ₹5,00,000 per depositor per bank (principal plus interest). Company and NBFC deposits are not covered by this insurance and carry higher risk.
What is the difference between a cumulative and non-cumulative FD?
A cumulative FD reinvests interest and pays it all at maturity (compounding). A non-cumulative FD pays interest out at regular intervals (monthly/quarterly/etc.), which suits those wanting a regular income but earns no compounding on the paid-out interest.
Can I use this calculator for company or post-office deposits?
The compound-interest maths is the same, but compounding frequency, rates and tax/TDS rules differ for company FDs and post-office schemes. Check the specific product's terms.
Sources
- Reserve Bank of India — guidelines on bank term deposits and premature withdrawal. (rbi.org.in)
- DICGC (Deposit Insurance and Credit Guarantee Corporation) — deposit insurance cover of ₹5,00,000 per depositor per bank. (dicgc.org.in)
- Income-tax Act, Section 194A and Union Budget 2025 — TDS thresholds on interest income revised effective 1 April 2025 (₹50,000 general / ₹1,00,000 senior citizens). (incometax.gov.in)
- Standard compound-interest formula (financial mathematics); all worked examples calculated and verified by the Tips4Banking editorial team.
Interest rates shown are examples only and vary by bank, tenure and amount. TDS thresholds are set in the annual Budget — verify the current limit before relying on it. This page is information, not tax or investment advice.