How to use this FD calculator
- Enter the deposit amount (principal) you want to invest.
- Set the annual interest rate offered by your bank using the slider or type it directly.
- Choose the tenure in years.
- Select the compounding frequency — most banks compound quarterly.
- The calculator instantly shows your maturity amount, total interest earned, a pie chart breakdown, and a growth chart.
- Expand the year-by-year breakdown to see how your deposit grows each year.
What is a fixed deposit (FD)?
A fixed deposit is one of the safest investment instruments offered by banks and NBFCs. You deposit a lump sum amount for a fixed period at a guaranteed interest rate. Unlike market-linked investments, FD returns are predictable and unaffected by market volatility.
FDs are ideal for conservative investors who prioritise capital safety over high returns. They are also commonly used for short- to medium-term financial goals, emergency funds, and by senior citizens who depend on interest income.
FD maturity formula
Where P = principal deposit, r = annual interest rate (as a decimal), n = compounding frequency per year, t = tenure in years.
For example, ₹1,00,000 at 7% p.a. compounded quarterly for 5 years: A = 1,00,000 × (1 + 0.07/4)4×5 = 1,00,000 × (1.0175)20 ≈ ₹1,41,478.
FD interest rates comparison
Interest rates vary by bank, tenure, and depositor type. Here is a general range:
| Tenure | General rate | Senior citizen rate |
|---|---|---|
| 7 days – 6 months | 3.0% – 5.5% | 3.5% – 6.0% |
| 6 months – 1 year | 5.5% – 7.0% | 6.0% – 7.5% |
| 1 – 3 years | 6.5% – 7.25% | 7.0% – 7.75% |
| 3 – 5 years | 6.5% – 7.5% | 7.0% – 8.0% |
| 5 – 10 years | 6.0% – 7.0% | 6.5% – 7.5% |
Rates are indicative and vary across banks. Always confirm current rates with your bank.
Frequently asked questions
What is the difference between cumulative and non-cumulative FD?
In a cumulative FD, interest is compounded and paid out at maturity along with the principal — ideal for wealth building. In a non-cumulative FD, interest is paid out at regular intervals (monthly, quarterly, or yearly) — ideal for generating periodic income.
Is FD interest taxable?
Yes. Interest earned on FDs is fully taxable under "Income from Other Sources." Banks deduct TDS at 10% if total interest exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your income is below the taxable limit.
Can I withdraw my FD before maturity?
Yes, most banks allow premature withdrawal, but they charge a penalty of 0.5%–1% on the applicable interest rate. Some banks offer no-penalty FDs with slightly lower interest rates.
What is a tax-saving FD?
A tax-saving FD has a 5-year lock-in period and qualifies for a deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. However, the interest earned is still taxable.
How does compounding frequency affect FD returns?
More frequent compounding yields slightly higher returns. Monthly compounding earns more than quarterly, which earns more than yearly — because interest is reinvested sooner. The difference is modest for short tenures but adds up over longer periods.