FD Calculator
A fixed deposit (FD) lets you park a lump sum with a bank for a fixed time at a fixed rate. Most banks add the interest to your balance every quarter, so each quarter you earn interest on interest too. If you put ₹1,00,000 in a 5-year FD at 7%, you get back ₹1,41,478: ₹41,478 is interest. Enter your own amount, rate and tenure below to see yours, year by year. This is the amount before any tax is deducted.
- A = P × (1 + r ÷ (100 × n))^(n × t) = ₹1,00,000 × (1 + 7 ÷ 400)^(4 × 5)
- Interest = ₹1,41,478 − ₹1,00,000 = ₹41,478
- Your deposit: ₹1,00,000 (70.7%)
- Interest earned: ₹41,478 (29.3%)
| Year | Opening balance | Interest in year | Closing balance |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹7,186 | ₹1,07,186 |
| Year 2 | ₹1,07,186 | ₹7,702 | ₹1,14,888 |
| Year 3 | ₹1,14,888 | ₹8,256 | ₹1,23,144 |
| Year 4 | ₹1,23,144 | ₹8,849 | ₹1,31,993 |
| Year 5 | ₹1,31,993 | ₹9,485 | ₹1,41,478 |
Read the guide: FD vs RD: Which Is Better for You? Returns, Tax and Rules Compared
How to use the fd calculator
- Enter the amount you will deposit in one go.
- Enter the interest rate your bank quotes for that tenure. Rates differ for different tenures and for senior citizens, so read the rate card.
- Enter the tenure in years and extra months. Most banks accept deposits from 7 days up to 10 years.
- Choose how often interest is added. Quarterly is the most common. If you will take the interest out as a payout instead, this calculator does not apply, because a payout FD does not compound.
- Read the maturity amount, the interest, and the effective yearly return, which is higher than the quoted rate whenever interest is added more than once a year.
Formula
Maturity amount = P × (1 + r ÷ (100 × n))n × t
Here P is the deposit, r is the yearly rate in %, n is how many times a year interest is added (4 for quarterly), and t is the tenure in years.
Interest earned = Maturity amount − P
Effective yearly return = ((1 + r ÷ (100 × n))n − 1) × 100. At 7% compounded quarterly it is 7.186%.
For tenures that are not a whole number of quarters, banks have their own rounding rules, so the figure on your receipt can differ by a small amount.
Worked examples
₹1 lakh for 5 years at 7%
With quarterly compounding you get ₹1,41,478 at maturity, so ₹41,478 is interest. If the interest were added only once a year, you would get ₹1,40,255, which is ₹1,223 less. Same rate, same money: the more often interest is added, the more you earn.
₹5 lakh for 5 years: does 0.5% matter?
At 7% the maturity amount is ₹7,07,389. At 7.5% it is ₹7,24,974. That 0.5% extra is worth ₹17,585 over five years, which is why senior citizens’ rates and comparing banks can matter.
A tenure with extra months
₹5,00,000 at 6.5% for 3 years and 6 months grows to ₹6,26,582, so interest is ₹1,26,582. The table shows the last row as a part year.
How long does it take to double?
₹1,00,000 at 7% grows to ₹2,00,160 in 10 years, so a 10-year FD about doubles your money at that rate. The Rule of 72 gives the same answer: 72 ÷ 7 is a little over 10 years.
Common mistakes to avoid
- Comparing banks by the quoted rate alone. A bank that adds interest monthly gives you a slightly higher effective return than one that adds it yearly at the same rate.
- Forgetting tax. FD interest is added to your income and taxed at your slab rate every year, even if you only receive it at maturity. A bank also deducts TDS once your interest from that bank crosses the yearly limit.
- Ignoring the penalty for breaking an FD early. Banks usually cut the rate when you withdraw before maturity, so check the rule before you lock in money you may need.
- Putting more than ₹5 lakh in one bank. Deposit insurance covers up to ₹5 lakh per depositor per bank, with principal and interest counted together.
- Assuming the rate will stay the same on renewal. When an FD matures, the new rate can be lower.
Frequently asked questions
How is FD interest calculated?
Most Indian banks add the interest to your balance every quarter. The formula is Maturity amount = P × (1 + r ÷ 400)4t for quarterly compounding, where P is the deposit, r is the yearly rate in % and t is the years. This calculator also lets you choose monthly, half-yearly or yearly compounding.
Is FD interest taxable?
Yes. FD interest is taxed as “income from other sources” at your slab rate, and you should add it to your income every year as it accrues, not only when the FD matures. Use our income tax calculator to see what your slab means for your FD.
When does the bank deduct TDS on FD interest?
From 1 April 2025, banks deduct TDS at 10% (20% without PAN) only if the interest they pay you in a year is more than ₹50,000, or more than ₹1,00,000 for senior citizens. Once you cross the limit, TDS applies to the whole interest, not just the excess. Rules were renumbered under the Income-tax Act, 2025, so confirm the current section with your bank. TDS is only an advance payment, and you can claim it against your final tax.
Is my FD safe?
Deposits in banks are insured by DICGC up to ₹5 lakh per depositor per bank, with principal and interest together, across all branches. Deposits above that are not covered. Company and NBFC FDs are not covered by this insurance.
What is the effective yield and why is it higher than the rate?
The quoted rate is a yearly rate. If interest is added every quarter, you earn interest on interest, so over a year you actually earn more. At 7% compounded quarterly, you earn 7.186% in a year. That figure is the effective yield.
FD or RD: which should I choose?
Use an FD when you have a lump sum today. Use an RD when you want to save a fixed amount every month. For long-term growth, compare both with a SIP, which is not guaranteed.
Can I take my money out before the FD matures?
Usually yes, but most banks pay a lower rate for the period the money stayed, and they may charge a penalty. A tax-saving FD has a 5-year lock-in and cannot be withdrawn early. Read your bank’s terms before you deposit.
Sources: DICGC — Deposit insurance (₹5 lakh cover) · Income Tax Department — TDS on interest (section 194A)