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 updated: August 4, 2026 · Formulas verified by automated tests that block every release. Editorial review dates are shown in the sources block above.
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.