Fixed Deposit Calculator
Calculate maturity value of fixed deposits.
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Ready when you are
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The deposit your parents swore by
Ask anyone in a Tier-2 town what to do with a spare lakh, and the answer is usually the same. Put it in an FD. A fixed deposit locks a sum with the bank for a set period, and in return the bank pays you a fixed rate. Nothing market-linked, nothing to watch every morning. You hand over the money, you get a maturity amount on a known date. That predictability is exactly why FDs never went out of style here.
How the maturity is built
Most banks compound FD interest every quarter. The maturity follows A = P(1 + r/4)^(4t), where P is your deposit, r is the annual rate as a decimal, and t is the years. Compounding quarterly just means the interest earned in one three-month block starts earning its own interest in the next. Small effect early on. Over five years it adds up to real money.
Here's a number to sit with. Put Rs 1,00,000 in a five-year FD at around 7 percent, compounded quarterly. The maturity lands near Rs 1,41,478. So a clean Rs 41,478 of growth on money you didn't touch once. A Pune saver doing this instead of leaving cash idle in savings comes out clearly ahead, because savings accounts pay far less.
What quietly eats your return
FD interest isn't tax-free. It gets added to your total income and taxed at your slab, which surprises people every single year. Banks also deduct TDS once your yearly FD interest crosses the threshold, so check the current limit before you assume you'll get the full amount. Two more things worth knowing:
- Break the FD early and you pay a premature withdrawal penalty, usually a small cut on the rate.
- Senior citizens generally get about 0.5 percent more than the standard rate.
So before you lock a big sum, think about whether you might need it. An FD rewards patience and punishes panic. Pick a tenure you can actually leave alone, and let the quarterly compounding do its slow, boring, reliable work.
Fixed Deposit Calculator — frequently asked questions
How is FD maturity amount calculated in India?
Banks use compound interest, mostly compounded quarterly. The formula is A = P times (1 + r/4) raised to (4 times t), where P is your deposit, r is the yearly rate as a decimal, and t is years. Each quarter's interest gets added to the principal and starts earning more. That is why a longer FD grows faster than simple interest would suggest.
Is FD interest taxable in India?
Yes, fully. The interest gets added to your total income and is taxed at whatever slab you fall in. There is no special lower rate for FD earnings. If you are in the 30 percent slab, nearly a third of your interest goes to tax. Many people forget this and feel short-changed at maturity, so factor your slab in while planning.
When does the bank deduct TDS on FD interest?
Banks deduct TDS once your total FD interest in a year crosses a set threshold, and the limit is higher for senior citizens. Check the current threshold since it changes. If your income is below the taxable level, you can submit Form 15G or 15H to ask the bank not to deduct TDS. Submit it early in the financial year to avoid deductions.
What happens if I break my FD before maturity?
You can withdraw early, but the bank charges a premature withdrawal penalty. Usually it lowers the interest rate by a small margin and pays you interest for the actual period the money stayed, not the original rate you booked. So you earn less than promised. Some banks also let you take a loan against the FD instead, which avoids breaking it entirely.
Do senior citizens get a higher FD rate?
Yes, most banks offer senior citizens around 0.5 percent more than the standard rate. So if a regular FD pays about 7 percent, a senior might get close to 7.5 percent on the same tenure. Over five years that small bump adds a useful amount. You need to be 60 or above, and the higher rate applies only to deposits in the senior's own name.
Is FD better than a savings account for parking money?
For money you will not need soon, yes. Savings accounts pay a low rate, while FDs pay far more for committing the cash for a fixed period. The catch is access. Savings money is instant, FD money needs breaking with a penalty. Keep your emergency buffer in savings and lock the surplus in an FD so it actually grows.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.