FD Calculator
A deposit locked in at a fixed rate, compounding on a set schedule. See the maturity value, the interest earned and the true annual yield.
Your deposit
Most Indian banks compound FD interest quarterly.
At maturity
Year-by-year ledger
Crore crossings in green| Year | Interest so far | Value | In crore |
|---|
How FD maturity is calculated
A fixed deposit grows by A = P × (1+r/m)^(m·t), where P is the deposit, r the annual rate (as a decimal), m the number of times interest is compounded each year and t the tenure in years. Compounding more often lifts the outcome slightly: the same 7% compounded quarterly yields about 7.19% a year, monthly about 7.23%.
A deposit of ₹10 lakh at 7% compounded quarterly grows to about ₹14.15 lakh in five years — roughly ₹4.15 lakh of interest. Remember this is the gross figure; tax is deducted separately.
FD questions
Does quarterly compounding beat yearly compounding?
Yes, slightly. At a stated 7%, quarterly compounding gives an effective yield of about 7.19% a year versus 7.00% for yearly. On ₹10 lakh over five years that is roughly ₹9,000 more.
Is FD interest taxed?
Yes. FD interest is fully taxable at your income-tax slab. Banks deduct 10% TDS once interest crosses ₹40,000 in a year (₹50,000 for senior citizens), or 20% if no PAN is on file. This calculator shows gross figures before tax.
Do senior citizens get a higher FD rate?
Usually. Most banks add 0.25% to 0.50% to the standard rate for depositors aged 60 and above, so a 7% FD might be 7.50% for a senior citizen.