FD Calculator
Work out what a lump-sum Fixed Deposit will be worth at maturity, with your choice of compounding frequency.
Why compounding frequency matters
The same annual rate produces a slightly higher maturity value the more often interest compounds — quarterly compounding (the norm for most Indian bank FDs) beats annual compounding by a small but real margin, since interest earned starts earning its own interest sooner. The formula used is A = P(1 + r/n)n×t, where n is the compounding frequency per year.
Important note
This calculator gives an estimate for planning purposes using standard formulas and the rate you enter. Actual returns depend on market performance (for market-linked options), the scheme's official compounding rules, and rates that change over time — this is not a guarantee of returns and not financial advice. Check current official rates before relying on any figure here.
Frequently asked questions
Is FD interest taxable?
Yes — interest earned on a Fixed Deposit is typically added to your taxable income and taxed at your applicable slab rate in India, and banks usually deduct TDS if interest exceeds a certain threshold in a financial year. Confirm current thresholds and rules with a tax advisor.
What's the difference between cumulative and non-cumulative FDs?
A cumulative FD reinvests interest back into the deposit, compounding until maturity (what this calculator models); a non-cumulative FD pays out interest at regular intervals (monthly/quarterly/annually) instead of letting it compound, resulting in a lower total payout for the same rate.
Can I withdraw an FD before maturity?
Most banks allow premature withdrawal, usually with a penalty (a reduced interest rate) applied to the amount withdrawn early — check your specific bank's premature withdrawal terms before relying on early access.
Why do banks compound FD interest quarterly instead of monthly or annually?
Quarterly compounding is simply the conventional standard most Indian banks use for FDs; it's not a rule but a widespread industry practice. This calculator lets you choose monthly, quarterly, or annual compounding to match your specific bank's terms.