Find the final amount of a bank Fixed Deposit.
Assumes quarterly compounding, the standard convention most Indian banks use for FDs.
Maturity: P × (1 + r/4)^(4×years)
An FD calculator shows what a bank fixed deposit will pay at maturity. You enter the amount, the interest rate and the tenure, and it applies quarterly compounding, the convention most Indian banks use for cumulative FDs.
Fixed deposits remain the most widely held savings product in India, favoured by retirees, conservative savers and anyone who wants a known return. Before booking one, people want to know the maturity amount, how much of it is interest, and how rates from different banks compare. This calculator answers all three.
It models a cumulative FD, where interest is added back to the deposit. Non-cumulative FDs that pay interest monthly or quarterly give a slightly lower total, because the interest paid out does not compound.
1. Note the deposit P, the annual interest rate r% and the tenure t in years.
2. Find the quarterly rate: r ÷ 400.
3. Find the number of quarters: 4t.
4. Maturity = P × (1 + r ÷ 400)^(4t).
5. Interest earned = maturity − P.
6. For the effective annual yield, compute (1 + r ÷ 400)⁴ − 1.
Banks quote an annual rate, but with quarterly compounding the interest earned in one quarter itself earns interest in the next. So the effective yield is a little higher than the quoted rate. At 7% compounded quarterly, the effective yield is (1.0175)⁴ − 1, about 7.19%. This is why a bank's rate card may show both an interest rate and an annualised yield. When comparing an FD with a product that compounds yearly, such as NSC, compare effective yields rather than quoted rates.
FD interest is added to your income and taxed at your slab rate. It is taxable every year as it accrues, even on a cumulative FD that pays nothing until maturity. Banks deduct TDS on interest above a threshold set by the government, and those without taxable income can submit a declaration form to avoid TDS. The calculator shows pre-tax figures. For someone in a high tax bracket, the post-tax return on an FD can fall below inflation, which is worth checking before locking money in for years.
Bank deposits are insured by DICGC up to a limit per depositor per bank, covering principal and interest together. Spreading large sums across banks keeps each within that limit. FD rates vary by tenure, and banks usually pay senior citizens a little more. Breaking an FD early typically means interest is recalculated at the lower rate for the period actually held, minus a penalty. If you may need part of the money, several smaller FDs, or a ladder with staggered maturities, give more flexibility than one large deposit.
Revathi has ₹2,50,000 from a matured policy and books a 3-year cumulative FD at her bank's rate of 7.4%.
Answer: Maturity amount ₹3,11,510; Interest earned ₹61,510
Assuming all FDs compound quarterly; some compound monthly or annually, so check the terms.
Using this for a non-cumulative FD that pays out interest regularly, which gives a lower total.
Ignoring tax on accrued interest in the years before maturity.
Comparing a quoted FD rate with another product's effective yield.
Keeping emergency money in a single long FD with a premature withdrawal penalty.
Comparing maturity amounts across banks and tenures before booking.
Planning an FD ladder with staggered maturities.
Estimating yearly interest income for tax planning.
Deciding between an FD and small savings schemes or debt funds.
Do all banks compound FD interest quarterly?
Quarterly is the most common method used in India, but some FDs add interest monthly or yearly instead. Check your own FD's terms to be sure.