How to use: FD calculator
- 1Enter the amount you will deposit.
- 2Enter the bank's interest rate for your tenure.
- 3Enter the tenure in years and months.
- 4Choose the compounding frequency; quarterly is the default for most banks.
Compounding makes a difference
₹1,00,000 at 7% for 5 years:
| Compounding | Maturity |
|---|---|
| Yearly | ₹1,40,255 |
| Half-yearly | ₹1,41,060 |
| Quarterly | ₹1,41,478 |
| Monthly | ₹1,41,763 |
Cumulative vs payout FDs
This calculator shows cumulative FDs, where interest is reinvested and paid at maturity. If you choose a monthly or quarterly payout FD, interest is paid out instead of compounding, so the total you receive is lower.
Tips
- Ladder your FDs across different maturities so some money is always becoming available.
- Compare with debt funds and RDs for your time frame and tax bracket.
- Check premature withdrawal penalties before locking money in for a long tenure.
Frequently asked questions
How do banks calculate FD interest?
Most Indian banks compound interest quarterly using A = P × (1 + r/4)^(4 × years). Deposits shorter than six months usually earn simple interest instead.
What is the effective yield?
Because of compounding, a 7% FD compounded quarterly actually earns about 7.19% a year. The effective yield lets you compare FDs with different compounding.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS once the year's interest crosses the TDS threshold; submit Form 15G (or 15H for senior citizens) if your total income is below the taxable limit.
Do senior citizens get a higher rate?
Most banks pay senior citizens an extra 0.25–0.75% a year. Enter the senior citizen rate from your bank to see the difference.