What is the FD Calculator?
A Fixed Deposit (FD) calculator computes the maturity amount of a one-time deposit kept with a bank or NBFC for a fixed tenure at a fixed interest rate. It's the simplest, lowest-risk parking spot for short-term money.
Indian banks compound FD interest quarterly. This calculator uses that compounding so the maturity matches what your bank credits.
Formula
M = P × (1 + r/n)^(n × t)
- P — Principal amount
- r — Annual interest rate (decimal)
- n — Compounding frequency per year (4 for quarterly)
- t — Tenure in years
Step-by-step example
Setup: ₹1,00,000 FD at 7.25% p.a. for 5 years.
- Quarterly rate = 0.0725 / 4 = 0.018125
- Periods n × t = 20
- Maturity = 1,00,000 × 1.018125²⁰ ≈ ₹1,43,000
Answer: Maturity ≈ ₹1,43,000 · Interest earned ≈ ₹43,000
Frequently asked questions
Is FD interest taxable?
Yes. Interest is taxed at your slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
Is premature withdrawal allowed?
Yes, with a small penalty (usually 0.5–1% off the interest rate).
Are FDs insured?
Bank FDs are insured by DICGC up to ₹5 lakh per depositor per bank.