FD Calculator

A fixed deposit locks a lump sum with a bank or NBFC for a chosen tenure at a fixed interest rate, insulating you from the ups and downs of markets. The maturity value depends on three things: the principal, the annual interest rate, and how often the bank compounds that interest. Most Indian banks compound quarterly, but this calculator lets you compare monthly, quarterly, and yearly compounding so you can see the difference for yourself.

The reason compounding matters is that interest itself starts earning interest. On a one-year deposit the gap between simple and compound interest is small, but over five or ten years it widens meaningfully. The comparison panel here shows both figures side by side, so you can see exactly how many rupees compounding adds on top of plain simple interest for your specific deposit and tenure. Senior citizens typically earn an extra 0.25%–0.75% over the standard rate, which compounds into a noticeable difference.

Two things to keep in mind. First, FD interest is fully taxable at your slab rate, and banks deduct TDS once annual interest crosses ₹40,000 (₹50,000 for senior citizens) — so your post-tax return is lower than the headline rate, especially in higher brackets. Second, breaking an FD early usually attracts a penalty of around 0.5%–1% on the applicable rate. If you might need the money sooner, consider laddering several smaller FDs with staggered maturities instead of one large deposit, so you can access part of your money without breaking the whole thing.