What is FD Calculator?
Calculate Fixed Deposit maturity amount and interest earned for any bank with quarterly, monthly or annual compounding Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Reviewed and last updated on 30 July 2026 by the FinCalc Pro Editorial Team.
How FD Maturity Values Are Computed
The FD Calculator uses the compound interest formula M = P × (1 + r/n)^(n×t), where n is the compounding frequency. Indian banks almost universally compound deposits quarterly, so for a 7% annual rate the calculator applies 1.75% every three months to the running balance rather than a flat 7% once a year. The practical difference: ₹5 lakh at 7% for 3 years matures at about ₹6,16,450 with quarterly compounding, versus ₹6,12,500 if interest were computed only once a year.
Because the compounding frequency changes the outcome by a small but real amount, always select quarterly when comparing against a bank's quoted "effective yield". The effective annual yield on a 7% quarterly-compounded deposit is actually about 7.19% — the extra 0.19% is the compounding gain the bank bakes into its marketing.
TDS and the Real Post-Tax Return
FD interest is fully taxable at your slab rate, and banks deduct 10% TDS when total interest across all branches crosses ₹40,000 in a year (₹50,000 for senior citizens). The calculator gives you the gross maturity amount; the post-tax picture requires applying your marginal rate to the interest earned.
For a taxpayer in the 30% bracket, a 7% FD yields roughly 4.9% after tax. That changes the comparison against investments like PPF (tax-free), equity SIPs, or tax-saving FDs. Tax-saving FDs under Section 80C lock in five years and give a deduction on the principal, but the interest remains taxable — a point many savers miss when they assume "80C FD" means fully tax-free.
Comparing Banks and Building an FD Ladder
Rates vary meaningfully: small finance banks often offer 8–9% against 6.5–7.5% at large private and public banks, while senior citizens typically earn 0.25–0.5% more. Always confirm the deposit is insured under the DICGC scheme (up to ₹5 lakh per bank per customer) before chasing a high rate.
A common strategy is an FD ladder — splitting one amount across 6-month, 1-year, 2-year, and 3-year deposits so a portion matures every few months, providing liquidity without breaking long deposits early and paying penalties. The calculator lets you model each rung of the ladder separately and add them together.
Formula Used
M = Maturity Amount | P = Principal | r = Annual interest rate | n = Compounding frequency | t = Tenure in years
How to Use This Calculator
- Enter your FD principal amount
- Enter the annual interest rate offered by your bank
- Select compounding frequency (quarterly is standard for most banks)
- Enter FD tenure in years and months
- Click Calculate to see maturity amount and total interest
Worked Example
Principal: ₹5,00,000 | Rate: 7% | Quarterly compounding | 3 years → Maturity: ₹6,16,450 | Interest: ₹1,16,450
Why Use This Tool?
- Compare FD rates across different banks
- Plan tax-saving FD (5-year lock-in) under 80C
- See effective yield after TDS deduction
- Senior citizen FD offers 0.25–0.5% higher rates
Frequently Asked Questions
How is FD interest calculated?
Most banks use quarterly compounding: M = P × (1 + r/4)^(4×t). For example, ₹1 lakh at 7% for 1 year with quarterly compounding gives ₹1,07,186.
Is TDS deducted on FD interest?
Yes, TDS at 10% is deducted if FD interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your income is below taxable limit.
Which bank offers the best FD interest rates?
Small finance banks like Unity, Suryoday, ESAF offer 8–9% FD rates. Among large banks, rates range from 6.5–7.5%. Senior citizens get 0.25–0.5% extra. Always check FDIC/DICGC insurance limit (₹5 lakh).
Can I break FD before maturity?
Yes, but premature withdrawal attracts a penalty of 0.5–1% on the applicable rate. It is better to take a loan against FD instead of breaking it prematurely.
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