FD Calculator

A cumulative fixed deposit adds the interest to the deposit at every compounding period, so later interest is also earned on earlier interest. The maturity value is A = P × (1 + r/n)^(n × t), where P is the deposit, r the yearly rate, n the number of compounding periods per year and t the tenure in years.

For example, ₹1,00,000 at 7% for 5 years with quarterly compounding grows to about ₹1,41,478, so the interest earned is about ₹41,478. The effective yield of 7% compounded quarterly is about 7.186% a year.

This calculator is for cumulative deposits, where interest stays in the deposit until maturity. In a payout or non-cumulative FD the bank pays the interest out every month or quarter instead, so the deposit itself does not grow; the total interest is then simply the deposit times the rate times the years, slightly lower than with compounding.

Senior citizens usually receive an extra rate of around 0.25 to 0.5 percentage points. Enter that higher rate to see their maturity amount.

FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when the interest in a year is above the threshold set by the government; you can submit Form 15G or 15H if your total income is below the taxable limit. The calculator shows interest before tax, so set aside the tax you will owe.

Compare the effective yield rather than the quoted rate when banks compound differently, and check the penalty for breaking the deposit early. Splitting a large amount into several deposits with different maturities, known as laddering, keeps part of your money available and lets you reinvest at new rates as each deposit matures.

The table shows the balance at the end of every year and the interest earned in that year. Because interest is compounded, the yearly interest grows a little each year even though the rate stays the same. For a tenure with extra months, the last row shows the balance at maturity. Use the table to compare a short deposit you renew every year with one long deposit: the long deposit locks in today's rate, while yearly renewals let you take advantage if rates go up but expose you to lower rates if they fall. Compare banks with the same tenure and compounding, and remember that small finance banks often offer higher rates with deposit insurance up to the usual limit per bank.