FD Calculator

FD interest in India is usually compounded quarterly using the formula A = P × (1 + r/4)^(4×t), where P is the principal, r is the annual interest rate (as a decimal), and t is the tenure in years. The maturity amount A includes both your principal and the compounded interest. For example, ₹1 lakh at 7% for 5 years with quarterly compounding grows to about ₹1,41,478.

In a cumulative FD, the interest is reinvested and compounded, and you receive the entire amount (principal + interest) at maturity — best for growing your money. In a non-cumulative FD, the interest is paid out periodically (monthly, quarterly or yearly) and does not compound — best for those who need regular income, like retirees.

Senior citizens (aged 60 and above) typically earn an extra 0.25% to 0.50% interest over the general public rate on the same fixed deposit. Some banks offer even higher rates for super senior citizens (80+). This is why the senior citizen FD is one of the most popular safe investment options for retirees.

Yes. FD interest is fully taxable and added to your income under 'Income from Other Sources', taxed at your income tax slab rate. Banks deduct TDS at 10% if your total FD interest exceeds ₹40,000 in a year (₹50,000 for senior citizens). If your income is below the taxable limit, submit Form 15G/15H to avoid TDS.

At 7% interest with quarterly compounding, a ₹1 lakh FD for 5 years matures to approximately ₹1,41,478 — meaning you earn about ₹41,478 as interest. A senior citizen at 7.5% would get around ₹1,44,995. Use the calculator above for your exact bank rate and tenure.

Yes, most FDs allow premature withdrawal, but the bank applies a penalty — usually 0.5% to 1% lower than the contracted rate — and you earn interest only for the period the deposit was actually held. Tax-saving 5-year FDs have a lock-in and cannot be withdrawn early.

FDs offer guaranteed, risk-free returns and are ideal for capital safety and short-to-medium goals. However, returns (around 6.5–7.5%) may not beat inflation over the long term. For long-term wealth, many investors combine FDs with equity mutual funds. The right mix depends on your risk appetite and time horizon.

Most banks allow you to open an FD with as little as ₹1,000 (some with ₹5,000). There is generally no upper limit, though deposits up to ₹5 lakh per bank are insured by DICGC. For very large amounts, spreading across banks keeps your money within the insured limit.