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FD Calculator India — Fixed Deposit Maturity & Yield | Hannav

Savings & Deposits

Fixed Deposit (FD) Calculator

Calculate the maturity amount, total interest earned, effective annual yield, and post-tax returns of your fixed deposit (FD) based on bank interest rates and compounding frequency.

Calculator Inputs

Enter variables to compute real-time projections

Deposit Amount (₹) *

Annual Interest Rate (% p.a.) *

312

Deposit Tenure *

1120

Tenure in Years (Toggle Off for Months) *

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Compounding Frequency (1=Yearly, 2=Half-Year, 4=Quarterly, 12=Monthly) *

112

Senior Citizen (+0.5% rate bonus) *

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Tax Bracket / TDS Rate (%) *

030

Projections Results

Maturity Amount

₹0

Interest Earned

₹0

Principal Amount

₹0

Effective Annual Yield

Post-tax Returns

Formula & Calculation Logic

Mathematical ModelMaturity Amount = Principal × (1 + r/n)^(n*t)

P = Principal Amount, r = Annual Interest Rate as decimal, n = Compounding frequency per year (1=Yearly, 2=Half-Yearly, 4=Quarterly, 12=Monthly), t = Tenure in years.

Fixed Deposit (FD) Introduction

A Fixed Deposit (FD) is one of India's most popular and secure saving instruments, offered by banks and non-banking financial companies (NBFCs). Unlike regular savings accounts, FDs lock in your capital for a predetermined tenure (ranging from 7 days to 10 years) at a guaranteed rate of interest that is immune to market volatility. Lenders reward this lock-in by offering significantly higher interest rates than savings accounts. FDs are ideal for capital protection, building emergency funds, or generating predictable quarterly or monthly payout streams for retirees. They are backed by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 Lakhs per bank, making them virtually risk-free.

FD Compound Interest Formula

The maturity amount of a Fixed Deposit compounding periodically is calculated using: Maturity Amount = Principal × (1 + r/n)^(n*t). Where: (1) Principal is your initial deposit amount. (2) r is the annual nominal interest rate (written as a decimal). (3) n is the compounding frequency per year (1 for yearly, 2 for half-yearly, 4 for quarterly, 12 for monthly). (4) t is the tenure of the deposit in years. For example, if you deposit ₹1 Lakh at 7.0% compounded quarterly for 5 years: Principal = ₹1,00,000, r = 0.07, n = 4, t = 5. Maturity amount = ₹1,00,000 * (1 + 0.07/4)^20 = ₹1,41,478.

How Compounding Frequency Affects Returns

Compounding frequency determines how often the interest earned is added back to the principal to earn further interest. The rule is simple: more frequent compounding yields higher returns. Monthly compounding generates the maximum interest outgo, followed by Quarterly, Half-Yearly, and Yearly. For instance, ₹1 Lakh at 7% p.a. for 1 year yields: (a) Yearly Compounding: ₹1,07,000 (Yield 7.00%), (b) Half-Yearly: ₹1,07,123 (Yield 7.12%), (c) Quarterly: ₹1,07,186 (Yield 7.19%), and (d) Monthly: ₹1,07,229 (Yield 7.23%). Indian banks compound FDs quarterly by default.

FD vs RD (Recurring Deposit)

Fixed Deposits and Recurring Deposits differ primarily in investment frequency: 1) FD: A single, lump-sum investment made upfront. It is ideal if you have idle capital ready to lock away. 2) RD: Periodic, monthly savings of a fixed amount. It is suitable for salaried individuals who want to build a corpus gradually from monthly cash flows. RDs also compound quarterly, but since money is deposited throughout the tenure, the total interest earned on an RD is lower than an FD of the same total corpus over the same duration.

FD vs Debt Mutual Funds

Fixed Deposits offer 100% capital safety with fixed, guaranteed returns. Debt Mutual Funds invest in corporate bonds and government securities, meaning they are market-linked and carry interest rate and credit risk. However, debt funds offer higher liquidity (no premature withdrawal penalties) and can potentially outperform FDs in falling interest rate regimes. Under current tax laws, both FDs and Debt Mutual Funds are taxed at your slab rates.

Taxation of Fixed Deposits

Interest earned on FDs is fully taxable under "Income from Other Sources" at your applicable income tax slab rate. Banks deduct Tax Deducted at Source (TDS) at 10% if the annual interest earned exceeds ₹40,000 (₹50,000 for Senior Citizens) in a financial year. If you do not provide your PAN, TDS is deducted at 20%. To avoid TDS (if your total income is below the taxable threshold), you can submit Form 15G (Form 15H for senior citizens) at the beginning of the fiscal year.

Worked Examples

Example 1: Regular Citizen. Deposit = ₹1,00,000, Interest Rate = 7.0% p.a., Tenure = 5 Years, compounded Quarterly. Maturity Amount = ₹1,41,478, Interest Earned = ₹41,478. Yield = 7.19%. | Example 2: Senior Citizen (+0.5% bonus = 7.5% rate). Deposit = ₹1,00,000, Tenure = 5 Years, compounded Quarterly. Maturity Amount = ₹1,44,995, Interest = ₹44,995. Yield = 7.71%. | Example 3: Regular Citizen with 10% TDS. Deposit = ₹2,00,000, Rate = 6.5% p.a., Tenure = 3 Years, compounded Quarterly. Pre-tax Maturity = ₹2,42,300, Interest = ₹42,300. Tax (10%) = ₹4,230. Post-tax Maturity = ₹2,38,070.

Frequently Asked Questions

An FD Calculator helps you estimate the maturity value, total interest earned, effective yield, and post-tax returns of your fixed deposits based on compounding schedules, interest rates, and tenure.

Indian banks calculate FD interest using quarterly compounding by default. The interest is calculated at the end of each quarter and added back to the principal, forming the base for the next quarter's interest.

Individuals aged 60 years or above are eligible for senior citizen FD rates, which are typically 0.50% p.a. higher than standard interest rates offered to general depositors.

There is no legal upper limit on FD investments. However, deposits above ₹2 Crore are classified as bulk deposits and may carry different interest rates than retail deposits.

Banks deduct 10% tax (TDS) on the interest earned if it exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. If your PAN is not updated in the bank records, TDS is deducted at 20%.

If your total annual income is below the taxable limit (₹7 Lakhs under the new tax regime), you can submit Form 15G (Form 15H for senior citizens) to the bank to request zero TDS deductions.

Yes, you can break an FD prematurely, but banks usually levy a penalty of 0.5% to 1% on the interest rate for the period the deposit was held. Tax-saving FDs (5-year lock-in) cannot be withdrawn prematurely.

A Tax-Saving FD has a mandatory lock-in period of 5 years and qualifies for a tax deduction under Section 80C of the Income Tax Act up to ₹1.5 Lakhs per year. Premature withdrawal or loan against this deposit is not allowed.

Yes, you can take a loan or overdraft against your FD (up to 90-95% of the deposit value). The interest rate charged on the loan is typically 1% to 2% higher than the FD rate, and your FD continues to earn interest.

The minimum tenure for a bank Fixed Deposit is 7 days, and the maximum tenure is 10 years.

Popular scenarios

Jump into prefilled calculator landings for common Indian amounts, tenures, and ages.

₹25,000 @ 7% for 1 Years ₹25,000 @ 7% for 2 Years ₹25,000 @ 7% for 3 Years ₹25,000 @ 7% for 5 Years ₹25,000 @ 7% for 7 Years ₹25,000 @ 7% for 10 Years ₹50,000 @ 7% for 1 Years ₹50,000 @ 7% for 2 Years