FD Calculator
Calculate how much your Fixed Deposit will be worth at maturity, accounting for your bank's compounding frequency.
Maturity Amount
after 5 years, quarterly compounding
FD vs. Other Fixed-Income Options
Fixed Deposits remain one of the most predictable investment options in India — your return is locked in at the time of deposit, regardless of how interest rates move afterward. This predictability comes at the cost of lower long-term returns compared to market-linked options like mutual funds, and FD interest is fully taxable at your slab rate, unlike instruments such as PPF, which offer tax-free interest.
Frequently Asked Questions
How is FD interest calculated?
Most Indian bank FDs use compound interest with quarterly compounding by default: A = P × (1 + r/n)^(n×t), where P is your deposit, r is the annual rate, n is the number of compounding periods per year, and t is tenure in years.
Why does compounding frequency matter?
More frequent compounding (e.g. monthly vs. annually) means interest gets added to your principal sooner, so it starts earning its own interest earlier. For the same nominal rate, monthly compounding yields a slightly higher maturity amount than annual compounding.
Is FD interest taxable?
Yes. FD interest is added to your total income and taxed at your applicable slab rate. Banks deduct TDS if your interest income exceeds ₹40,000 in a year (₹50,000 for senior citizens), but you're still liable to pay any additional tax due based on your full income.
What's the difference between cumulative and non-cumulative FDs?
A cumulative FD reinvests interest back into the deposit, paying out the full amount (principal + compounded interest) only at maturity — this calculator models a cumulative FD. A non-cumulative FD pays out interest periodically (monthly/quarterly) as income instead of compounding it.