How to Use This FD Calculator
Enter your deposit amount using the slider or the input field. Set the annual interest rate your bank is offering and choose the tenure in years. Select the compounding frequency — most bank FDs compound quarterly, though some compound monthly or annually. The calculator instantly shows your maturity amount, total interest earned, and the effective annual rate (which accounts for the benefit of compounding).
FD Interest Rates
We don't list bank-wise fixed deposit rates because they change often, and the rate you are offered depends on your credit score, income and loan amount. Ask your bank or lender for the rate offered to you, then enter it in the calculator above.
Why Compounding Frequency Matters
At the same annual rate, more frequent compounding results in higher returns. A 7% p.a. rate compounded monthly gives an effective annual rate (EAR) of about 7.23%, while the same rate compounded annually stays at 7%. Over a 5-year tenure on ₹10 lakh, monthly compounding earns roughly ₹3,000–₹5,000 more than annual compounding. Always check your bank's compounding schedule — most schedule quarterly compounding.
Related Calculators
Frequently Asked Questions
How is Fixed Deposit interest calculated?
FD interest is calculated using compound interest: A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual interest rate (as a decimal), n is the number of compounding periods per year, and t is the tenure in years. Most bank FDs compound quarterly. The interest earned = maturity amount − principal.
Where can I find current FD interest rates?
FD rates vary by bank and tenure and change with the RBI repo rate and liquidity conditions, so ask your bank for its current FD rates. Most banks pay senior citizens a slightly higher rate, and small finance banks often pay more than large banks. Enter the rate you are offered in the calculator above to see your maturity amount.
Is FD interest taxable in India?
Yes. FD interest is added to your total income and taxed at your applicable income tax slab rate. Banks deduct TDS (Tax Deducted at Source) at 10% if the annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G/15H to avoid TDS deduction.
What is the difference between cumulative and non-cumulative FDs?
In a cumulative FD, interest is compounded and paid at maturity along with the principal — this maximises returns through compounding. In a non-cumulative FD, interest is paid out periodically (monthly, quarterly, or annually) during the tenure. Non-cumulative FDs are preferred for regular income, while cumulative FDs are better for wealth accumulation.
Can I break an FD before maturity?
Yes, most banks allow premature withdrawal of FDs, but they levy a penalty — typically 0.5%–1% reduction on the applicable interest rate. For example, if a 2-year FD earns 7% p.a. and you break it after 1 year, the bank may pay you at the 1-year rate minus 1% (say 5.5% instead of 6.5%). Some tax-saving FDs with a 5-year lock-in do not allow premature withdrawal.