FD Calculator
Enter your principal, interest rate, and tenure to calculate FD maturity amount at monthly, quarterly, half-yearly, or annual compounding — with a side-by-side frequency comparison.
FD Calculator
Calculate Fixed Deposit maturity amount and interest across any compounding frequency.
| Frequency | Maturity | Interest |
|---|---|---|
| Monthly | ₹7.09 L | ₹2.09 L |
| Quarterly | ₹7.07 L | ₹2.07 L |
| Half-Yearly | ₹7.05 L | ₹2.05 L |
| Annually | ₹7.01 L | ₹2.01 L |
About FD Calculator
A Fixed Deposit (FD) is the most widely used savings instrument in India — virtually every bank offers it, and the returns are predictable and guaranteed. The key variable most depositors underestimate is the compounding frequency. Two FDs with the same principal and nominal interest rate but different compounding frequencies produce different maturity amounts. A ₹5 lakh FD at 7% for 5 years compounded quarterly gives ₹7,09,672 — while the same FD compounded annually gives ₹7,01,276. That's ₹8,396 extra for simply choosing quarterly over annual compounding on the same offer.
The mathematics is the compound interest formula: Maturity = P × (1 + r/n)^(n×t), where r is the annual rate, n is the compounding frequency per year (monthly=12, quarterly=4, half-yearly=2, annually=1), and t is the tenure in years. As n increases, the effective annual yield increases. At 7% nominal rate: annual compounding gives 7.00% effective yield; quarterly gives 7.19%; monthly gives 7.23%. Over longer tenures and higher principals, these fractions of a percent translate into thousands of rupees.
Most Indian banks compound FD interest quarterly — SBI, HDFC Bank, ICICI Bank, Axis Bank all use quarterly compounding as standard. Post Office FDs, however, compound annually. Senior citizens typically earn 0.25%–0.75% additional interest, and some banks offer 0.10%–0.25% extra for digital/online FDs. Small Finance Banks (SFBs) like AU SFB, ESAF, and Utkarsh offer rates of 8.0%–9.25%, significantly higher than large PSBs and private banks — all deposits up to ₹5 lakh are insured by DICGC regardless of bank type.
TDS (Tax Deducted at Source) applies to FD interest above ₹40,000 per year (₹50,000 for senior citizens). Banks deduct 10% TDS at source. If your total income is below the taxable limit, you can submit Form 15G (or 15H for seniors) to prevent TDS deduction. Remember: TDS is not the final tax — your actual liability depends on your income slab. If you are in the 30% slab, TDS of 10% is just a downpayment on your actual 30% liability on FD interest.
How to Use the FD Calculator
Enter the principal amount — the deposit amount you plan to invest in the FD.
Set the interest rate — use the rate quoted in your bank's current FD rate card for the corresponding tenure. Check your bank's website for the exact rate for your planned deposit amount and tenure.
Set the tenure in years — the lock-in period of the FD. Banks typically offer higher rates for 1–3 year FDs; rates for shorter (7 days–6 months) or very long (5–10 years) tenures may differ.
Choose the compounding frequency — select Monthly, Quarterly, Half-Yearly, or Annually. Most Indian banks use Quarterly compounding by default. Check your bank's offer letter if unsure.
Read the results — the maturity amount, interest earned, and effective yield are shown for your selected frequency. The comparison table shows the same FD at all four compounding frequencies so you can see the difference.
Pro Tips
Always prefer quarterly or monthly compounding over annual. Banks rarely differ on the frequency offered — but if you have a choice, quarterly is usually the default and gives better effective yield than annual. On a ₹10L FD for 5 years at 7.5%, quarterly compounding adds ~₹19,000 extra over annual compounding.
AU SFB, Equitas SFB, Ujjivan SFB, and Suryoday SFB regularly offer 7.75%–9.25% for 1–3 year FDs vs. 6.5%–7.25% at large PSBs. All deposits up to ₹5 lakh are DICGC-insured regardless of bank type. For amounts under ₹5L, an SFB FD is essentially as safe as an SBI FD but earns 1%–2% more annually.
Instead of putting ₹5L in one 5-year FD, split it into ₹1L each in 1y, 2y, 3y, 4y, 5y FDs. As each matures, reinvest at the prevailing rate. This "FD ladder" ensures you benefit from rising rates while not being stuck if rates fall, and you always have some liquidity every year.
Frequently Asked Questions
How is FD interest calculated in India?
FD interest is calculated using the compound interest formula: A = P × (1 + r/n)^(nt), where A = maturity amount, P = principal, r = annual interest rate (as a decimal), n = compounding frequency per year (monthly=12, quarterly=4, half-yearly=2, annually=1), t = tenure in years. Interest earned = A − P. Most Indian banks use quarterly compounding (n=4). For example, ₹1 lakh at 7% for 2 years with quarterly compounding: A = 1,00,000 × (1 + 0.07/4)^(4×2) = 1,00,000 × (1.0175)^8 = ₹1,14,868. Interest = ₹14,868.
What is the difference between FD interest rate and effective yield?
The nominal interest rate is the advertised rate (e.g., 7%). The effective annual yield is the actual return per year after accounting for compounding. At 7% compounded quarterly, the effective yield is (1 + 0.07/4)^4 − 1 = 7.186%. At 7% compounded monthly, it is (1 + 0.07/12)^12 − 1 = 7.229%. The gap seems small but scales with principal and tenure — on ₹50L over 5 years, the difference between annual and monthly compounding at 7% is approximately ₹42,000.
Is FD interest taxable?
Yes. FD interest is added to your total income and taxed at your applicable slab rate — 0%, 5%, 20%, or 30% under the new tax regime. If FD interest exceeds ₹40,000/year (₹50,000 for senior citizens), the bank deducts 10% TDS (20% if PAN is not provided). If your total income is below the taxable limit (₹3 lakh under new regime), submit Form 15G (or 15H for seniors) to prevent TDS. The TDS is not additional tax — it is advance tax credited against your final liability. Submit Form 15G/15H at the start of each financial year, not mid-year.
Can I break an FD before maturity?
Yes, premature FD withdrawal is allowed at most banks but typically incurs a penalty of 0.5%–1% on the interest rate. If you booked an FD at 7% and break it after 1 year on a 3-year FD, the bank pays interest at the 1-year rate applicable on the booking date minus the penalty (say 6.5% − 1% = 5.5%). Some tax-saving FDs (5-year, 80C benefit) have a mandatory lock-in of 5 years and cannot be broken prematurely. For liquidity needs, consider keeping a portion of funds in a liquid mutual fund alongside the FD — liquid funds offer near-instant redemption (T+1) with returns comparable to short-term FDs.
What is the DICGC insurance limit for FDs?
The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures bank deposits up to ₹5 lakh per depositor per bank — this covers all accounts (savings, current, FD, RD) combined at that bank. If you deposit more than ₹5 lakh in any single bank and that bank fails, amounts above ₹5L are at risk. To protect large deposits: spread them across multiple banks (you get ₹5L insurance at each) or use banks with AAA credit ratings. Small Finance Banks are covered by DICGC just like large PSBs and private banks — there is no distinction in insurance coverage based on bank size or type.
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