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FD Calculator

Calculate your Fixed Deposit (FD) maturity amount, cumulative interest earned, and effective yield. Built using standard quarterly compounding rules followed by all major Indian commercial banks.

₹
₹5,000₹1,00,00,000
%
3%10%
Yr
1 Yr10 Yr

Maturity Amount

₹1,23,144

3 year FD at 7% (quarterly compounding)

Principal

₹1,00,000

Interest

₹23,144

Total

₹1,23,144

Total Cost₹1,23,144
Principal Loan
₹1,00,000
81.2%
Total Interest
₹23,144
18.8%

FD maturity calculated using quarterly compounding (standard for most Indian banks). TDS may apply. Actual returns depend on bank and deposit type.

How Bank FD Maturity is Calculated in India

Fixed Deposits remain the benchmark risk-free investment for Indian savers. When you lock in funds for a tenure of 6 months or longer, Indian banks compound the interest quarterly (every 3 months) and reinvest it into your principal balance.

The standard compound interest formula for quarterly compounded cumulative FDs is:

A = P × [1 + r / (4 × 100)]^(4 × t)
A (Maturity Amount): Total amount payable to you at maturity (Principal + Interest).
P (Principal): Original lump-sum amount placed in the fixed deposit.
r & t: Annual interest rate percentage and tenure in years.

Sample Maturity Values: ₹1 Lakh, ₹5 Lakh & ₹10 Lakh FDs at 7.00% p.a.

Showing total maturity value and interest accrued with quarterly compounding:

Deposit Amount1 Year Maturity3 Year Maturity5 Year MaturityTotal 5-Yr Interest
₹1,00,000₹1,07,186₹1,23,144₹1,41,478₹41,478
₹5,00,000₹5,35,930₹6,15,720₹7,07,389₹2,07,389
₹10,00,000₹10,71,859₹12,31,439₹14,14,778₹4,14,778

Current Indicative Fixed Deposit Rates in India (2025)

Bank / Institution1-Year Regular Rate3-Year Regular Rate3-Year Senior Citizen Rate
State Bank of India (SBI)6.80%6.75%7.25%
HDFC Bank6.60%7.00%7.50%
ICICI Bank6.70%7.00%7.50%
Post Office Time Deposit (POTD)6.90%7.10%7.10%
Punjab National Bank (PNB)6.80%7.00%7.50%
Unity Small Finance Bank7.85%8.15%8.65%

Taxation and Safety Considerations

🛡️ DICGC Insurance Safety Net

Under RBI regulations, deposits up to ₹5 Lakh (combining principal and accrued interest) are guaranteed across all registered commercial banks. If investing more than ₹5 Lakhs, consider spreading deposits across multiple banks.

📑 Tax Added to Income Slab

FD interest is fully taxable as per your individual income tax slab under "Income from Other Sources". Even if TDS of 10% is deducted, you must pay additional tax if you fall in the 20% or 30% tax brackets.

Frequently Asked Questions

How is Fixed Deposit (FD) interest calculated in Indian banks?▾
Most commercial banks in India calculate cumulative FD interest on a quarterly compounding basis using the formula: A = P × (1 + r / (4 × 100))^(4 × t), where P is principal deposit, r is annual interest rate, and t is tenure in years.
Are Fixed Deposits in India safe and insured?▾
Yes, deposits in all scheduled commercial banks (public, private, and small finance banks) are insured up to ₹5,00,000 per depositor per bank by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI.
What is the additional interest rate for Senior Citizens on bank FDs?▾
Indian banks typically offer an additional 0.50% (50 basis points) interest rate to senior citizens (individuals aged 60 and above). Special tenures often feature super senior rates of up to 0.75% above standard rates.
What are the TDS rules on bank Fixed Deposit interest?▾
Under Section 194A of the Income Tax Act, banks deduct 10% TDS if total interest across all branches exceeds ₹40,000 in a financial year for general citizens (₹50,000 for senior citizens). If PAN is not provided, TDS is deducted at 20%.
How can I prevent TDS deduction on my Fixed Deposit interest?▾
If your total taxable income is below the basic tax exemption limit, you can submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) to your bank at the beginning of each financial year to avoid TDS deduction.
What is the difference between Cumulative and Non-Cumulative FDs?▾
In a Cumulative FD, interest is reinvested quarterly and paid out as a lump sum along with the principal at maturity (maximizing compounding). In a Non-Cumulative FD, interest is paid out periodically (monthly, quarterly, or half-yearly) directly to your savings account for regular cash flow.