FD Calculator (Fixed Deposit)
Calculate maturity value, cumulative interest earned, and quarterly compounding returns on bank fixed deposits in India.
After 3 years at 7% (quarterly)
*Interest is subject to TDS if total annual bank interest exceeds ₹40,000 (₹50,000 for seniors).
Important Educational Disclaimer for Calculator Results:
Calculations are estimates based on your entered inputs and selected return or inflation assumptions. Results are illustrative, hypothetical, and not guaranteed. Actual market returns, interest rates, tax liabilities, and inflation rates will vary and may materially alter your final outcome. This calculator does not constitute financial, investment, or tax advice.
What will your Fixed Deposit deliver at maturity?
A principal deposit of ₹1,00,000 locked for 3 years at 7% p.a. (quarterly compounding) will earn ₹23,144 in total interest, paying a maturity value of ₹1,23,144.
- Most Indian scheduled commercial banks compound fixed deposit interest on a quarterly basis (every 3 months).
- Senior citizens typically receive an additional 0.50% interest rate premium above standard card rates.
- Interest earned on bank FDs is fully taxable under 'Income from Other Sources' at your marginal slab rate, subject to 10% TDS if annual interest exceeds ₹40,000 (₹50,000 for seniors).
How This Calculator Works
Bank FDs use the compound interest formula with quarterly compounding (n=4). For simple interest deposits (non-cumulative), interest is paid out periodically without compounding.
A = P × (1 + r / n)^(n × t)Variables in Formula:
Worked Step-by-Step Example
You place ₹1,00,000 in a cumulative 3-year bank fixed deposit offering 7.0% interest compounded quarterly.
Key takeaway: Because interest is compounded quarterly rather than annually, you earn an extra ₹1,144 in bonus interest over simple compounding.
Common Mistakes to Avoid
⚠ Ignoring post-tax returns against inflation
A 7% FD in the 30% tax bracket yields 4.9% post-tax. If retail inflation is 6%, your real purchasing power is actually declining by -1.1% each year.
⚠ Breaking FDs prematurely without checking penalty
Premature withdrawal usually attracts a 0.5%–1.0% interest rate penalty and lowers the effective interest rate applied to the completed period.
Frequently Asked Questions
Complementary Tools
Educational Reading
Calculator = one answer. Financial Health Check = your full picture.
Answer 5 simple questions to see how your investments, debts, emergency fund, and cash flow fit together into a personalized blueprint.