FD Calculator: Fixed Deposit Maturity & Interest
How FD interest is calculated
Most Indian banks compound fixed-deposit interest every quarter. The maturity value is A = P × (1 + r ÷ k)k × t, where P is the deposit, r is the annual rate as a decimal, k is the number of times interest is compounded each year and t is the period in years.
Because interest earns interest, a 7% FD compounded quarterly actually yields a little more than 7% a year. The “effective yield” in the result shows this.
Things to keep in mind
- Tax: FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when interest crosses the yearly threshold unless you submit Form 15G or 15H.
- Senior citizens usually get 0.25–0.50% extra. Enter the higher rate to see the difference.
- Deposit insurance: DICGC insures deposits up to ₹5 lakh per depositor per bank, covering principal and interest together.
- Rate changes: when the RBI cuts the repo rate, new FD rates usually fall. Locking in a longer tenure before a cut keeps the higher rate.
This is an estimate for planning only. Banks may round differently, and premature withdrawal usually carries a penalty.