FD Calculator
₹ Fixed Deposit math the way Indian banks actually do it: quarterly compounding for cumulative FDs, honest simple-interest payouts for income FDs — and the price of choosing one over the other.
Anyone with the link can see the numbers included in it.
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Last reviewed: July 20, 2026 · Formulas verified by automated tests before every release.
How is FD maturity calculated?
Indian banks compound cumulative fixed deposits quarterly: maturity = P × (1 + r/4)^(4t). A ₹1,00,000 FD at 7% for 5 years matures at about ₹1,41,478 — ₹41,478 of interest, an effective yield of 7.19% a year. Non-cumulative FDs instead pay simple interest out monthly or quarterly (₹583 a month on that same deposit) and return the principal at the end.
The two FD formulas
Cumulative: A = P × (1 + r/4)^(4t) · Payout: income per period = P × r ÷ periods per year
The quarterly compounding is why an FD's effective yield beats its headline rate — 7% nominal works out to 7.19% effective. The blue box in the calculator prices the flip side: taking monthly income means the interest never compounds, and over five years on ₹1 lakh that convenience quietly costs about ₹6,478. Neither choice is wrong — pensioners buy income, savers buy growth — but the price tag should be visible before signing.
FD vs SIP vs PPF — different tools, different jobs
An FD locks a lump sum at a guaranteed rate — certainty, DICGC insurance to ₹5 lakh, full taxability. A SIP invests monthly into markets — higher expected growth, no guarantee. PPF is the 15-year tax-free marathon. The honest sequence many households use: emergency money in FDs, long-term money in SIPs, and PPF for the tax-free layer.
Sources, assumptions and limitations
- Formula: cumulative: A = P(1 + r/4)^(4t), quarterly compounding per Indian banking convention; payout: simple interest P×r÷periods, principal at maturity
- Assumptions: Rate stays fixed for the tenure (that's the FD contract); cumulative mode reinvests every quarter; figures are pre-tax.
- Not included: TDS and slab tax (see FAQ — banks deduct at 10% past ₹40,000/yr interest), premature-withdrawal penalties, senior-citizen rate bonuses (enter your actual card rate), tax-saver 5-year FD lock-in rules. DICGC insurance covers ₹5 lakh per depositor per bank.
- Last reviewed: July 26, 2026 by the CalcNotebook team
Frequently asked questions
How is FD interest calculated?
For cumulative FDs, Indian banks compound quarterly: maturity = P × (1 + r/4)^(4t). ₹1,00,000 at 7% for 5 years grows to about ₹1,41,478. Non-cumulative FDs pay simple interest out monthly or quarterly and return the principal at maturity — steady income, but no compounding.
Is FD interest taxable? What is TDS?
Yes — FD interest is fully taxable at your slab rate. Banks deduct TDS at 10% once your interest across their branches crosses ₹40,000 a year (₹50,000 for senior citizens); Form 15G/15H can prevent deduction if your income is below the taxable limit. This calculator shows pre-tax figures — your slab decides the rest.
What if I break the FD early?
Banks typically pay the rate applicable to the period the money actually stayed, minus a premature-withdrawal penalty (commonly 0.5–1%). Laddering — splitting one big FD into several maturities — keeps liquidity without sacrificing the whole deposit's rate.
Are FDs safe? What does DICGC cover?
Bank deposits in India are insured by DICGC up to ₹5 lakh per depositor per bank (principal + interest combined). Amounts above that ride on the bank's own strength — one honest argument for spreading large deposits across banks.
Senior citizen rates?
Most banks add 0.25–0.50% for depositors aged 60+. Enter the rate from your bank's senior-citizen card above — we deliberately don't guess it for you.