FD Calculator

How the number is worked out#

A cumulative fixed deposit pays no interest along the way. Interest is added to the balance at the end of every compounding period, and that larger balance earns the next period's interest:

M = P × (1 + r ÷ (100 × n)) ^ (n × t)

Where P is the amount you deposit, r is the annual rate in per cent, n is the number of compounding periods in a year, and t is the tenure in years.

Most Indian banks compound term deposits quarterly, which is why that is the default above. Change it if your deposit says otherwise. Non-cumulative deposits — the kind that pay interest out monthly or quarterly instead of reinvesting it — behave like the simple interest option, because nothing compounds.

A worked example#

₹1,00,000 at 6.5% for five years, compounded quarterly:

The same deposit compounded annually matures at ₹1,37,009. The ₹1,033 gap is the whole argument for reading the compounding frequency on the deposit slip.

What this does not include#

Tax. FD interest is taxed at your slab rate in the year it accrues, not the year the deposit matures, and the bank deducts TDS once your interest with it crosses the annual threshold. A 6.5% deposit in the 30% bracket returns roughly 4.55% after tax — which is the number to compare against inflation, not the headline rate. The income tax calculator will tell you which bracket you are in.

Premature withdrawal. Break a deposit early and the bank recalculates at the rate that applied to the tenure you actually held it for, usually minus a penalty of around 0.5% to 1%. The maturity figure above assumes you hold to term.

Senior citizen rates. Most banks add 0.25% to 0.75% for depositors over 60. Enter your own bank's quoted rate rather than the general one.

Questions#

Is the interest rate on my FD fixed for the whole tenure?#

Yes — that is what makes it a fixed deposit. The rate you book at applies until maturity, regardless of what the RBI does to the repo rate afterwards. Auto-renewal is the exception: a deposit that rolls over renews at whatever rate is current on that day.

Does a longer tenure always pay more?#

Not necessarily. Bank rate cards peak somewhere in the middle — often around one to three years — and can pay less for five years than for two. Check the card for the specific tenure rather than assuming the curve slopes upward.

Why does my bank's maturity figure differ by a few rupees?#

Banks compound on calendar quarters from the booking date, and round at each step. Over five years that arithmetic drifts a few rupees from a clean formula. Treat the number above as accurate to the rupee-hundred, not the rupee.