FD Calculator
Fixed deposits are the default safe parking spot for Indian savers. Work out exactly what your deposit matures to, and see how much extra compounding earns over plain simple interest.
FD Details
Fixed deposit returns calculator.
₹1,00,000.00
7.00% per annum
Senior citizen rate shown after +0.5% bonus
36 months (3.0 years)
Compounding Frequency
Senior Citizen (60+ years)
Banks usually offer 0.5% extra on the standard rate.
Income Tax Slab
Select your slab to see post-TDS returns
Principal vs Interest
How much of maturity is principal vs interest earned.
Maturity
₹1.2 L
- Principal₹1.0 L81.2%
- Interest₹23.1 K18.8%
FD Growth Over Time
The gap between the lines is interest earned.
- Value
- Principal
Simple vs Compound Interest
See how compounding beats simple interest.
Simple Interest
₹1,21,000
Interest: ₹21,000
P × R × T / 100
Compound Interest
₹1,23,144
Interest: ₹23,144
P × (1 + r/n)(n×t)
Compounding earns you ₹2,144 more (7.19% effective vs 7% nominal)
Financial Intelligence
PreviewCurated Strategy Templates
AI Insight
This fixed savings plan builds a total projected maturity corpus of ₹1,23,144. Interest earned constitutes 100% of this final balance.
What This Means
Safe debt planning forms the core risk-mitigation layer of your portfolio. Vehicles like PPF and EPF offer EEE (Exempt-Exempt-Exempt) tax status, meaning interest and maturity values are fully tax-free.
Action Plan
- ✓Invest in PPF before the 5th of every month to ensure you receive interest for the full month, as balances are calculated on the 5th.
- ✓Maximize your EPF allocation to secure a retirement base before deploying surplus funds into higher-risk equity assets.
- ✓Avoid premature withdrawals from retirement accounts to preserve the long-term compounding chain.
Suggested Next Step
Explore High-Yield Fixed Investments →FD Calculator
FD calculator India: A ₹5 lakh fixed deposit at 7.5% interest for 3 years with quarterly compounding matures to ₹6.24 lakh. The effective annual yield is 7.71%, significantly higher than the 7.5% simple interest rate.
What Is FD Calculator?
Two FDs offering the same 7.5% interest rate can give you very different returns depending on whether interest compounds quarterly or annually. On ₹5 lakh for 3 years, the difference is over ₹3,500 — just from compounding frequency. Senior citizens can add another ₹7,500 to that with the standard 0.5% bonus.
How FD Calculator Is Calculated
Most Indian banks use quarterly compounding for FDs. The formula is A = P (1 + r/n)^(nt), where n=4 for quarterly compounding.
Worked Example:
For an investment of ₹5,00,000 (P) at 7.5% interest (r) for 3 years (t):
- r = 0.075, n = 4 (Quarterly)
- A = 5,00,000 x (1 + 0.075/4)^(4x3)
- A = 5,00,000 x (1.01875)^12
- A = 5,00,000 x 1.2497 ≈ ₹6,24,858
- Total Interest: ₹1,24,858
- Effective Annual Yield: 7.71%
Key Factors That Affect Your Result
- Compounding Frequency: Monthly compounding pays slightly more than quarterly, which pays more than yearly.
- Senior Citizen Rates: Most Indian banks offer an extra 0.50% to 0.75% interest to those above 60 years of age.
- TDS (Tax Deducted at Source): Banks deduct 10% TDS if your annual interest exceeds ₹40,000 (₹50,000 for seniors).
FD Calculator in the Indian Context
Fixed Deposits remain a massive part of Indian household savings. However, FD interest is fully taxable as per your income tax slab. If you are in the 30% bracket, a 7.5% FD only gives you 5.25% after tax, which often barely beats inflation.
To avoid TDS, taxpayers with total income below the exemption limit must submit Form 15G or 15H at the start of every financial year.
Practical Tip
Instead of one large ₹10 Lakh FD, open five FDs of ₹2 Lakhs each. This allows you to break one if you need urgent cash while the other four continue to earn full interest.
What most Indians miss: Senior citizens often miss that the additional 0.5% interest on FDs is not the only benefit; they also have a higher TDS threshold of ₹50,000 (Section 80TTB) compared to ₹40,000 for others. Also, "Cumulative" FDs are often better than "Non-Cumulative" for long-term wealth.
Sources
- Reserve Bank of India (RBI) Master Circular on Interest Rates — [rbi.org.in](https://rbi.org.in)
- India Post Savings Schemes — [indiapost.gov.in](https://www.indiapost.gov.in)
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FD FAQ
Fixed Deposit — Common Questions
FD maturity is calculated using the compound interest formula: M = P × (1 + r/n)^(n×t). 'P' is your principal amount, 'r' is the annual interest rate, 'n' is the number of times interest is compounded per year, and 't' is the tenure in years. For a ₹1,00,000 FD at 7% p.a. for 5 years with quarterly compounding (n=4), the maturity amount will be approximately ₹1,41,478.
Yes, more frequent compounding generates higher returns. If you invest ₹5,00,000 at 7% for 5 years: Yearly compounding yields ₹1,98,421 in interest. Quarterly compounding yields ₹2,07,389. Monthly compounding yields ₹2,09,310. Most Indian banks compound FD interest on a quarterly basis.
Yes, FD interest is fully taxable. It is added to your total income under 'Income from Other Sources' and taxed according to your applicable slab rate. If you fall in the 30% tax bracket, a 7% FD effectively gives you a post-tax return of only 4.9%.
Banks automatically deduct 10% TDS (Tax Deducted at Source) if your total interest earned across all branches of that bank exceeds ₹40,000 in a financial year. For senior citizens, this threshold is ₹50,000. If you do not provide a PAN card, the TDS rate jumps to 20%.
If your total annual income is below the basic exemption limit (₹3 Lakhs under the new regime), you can submit Form 15G (or Form 15H if you are a senior citizen over 60) to the bank at the start of the financial year. This instructs the bank not to deduct any TDS on your FD interest.
Premature withdrawal of an FD usually incurs a penalty of 0.5% to 1% on the applicable interest rate. The bank will pay you interest for the period the FD was actually held, minus the penalty. To avoid this, consider 'FD Laddering'—splitting a ₹5 Lakh investment into five ₹1 Lakh FDs maturing at different intervals.
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