FD Calculator
What will your fixed deposit actually grow to? Maturity value and interest earned, with the compounding frequency your bank really uses. Free, private, no signup.
Your fixed deposit
At maturity
Year-by-year growth
| Year | Interest that year | Balance |
|---|
How FD compounding actually works
Banks quote a per-year rate, but most compound quarterly — the interest earned each quarter starts earning its own interest. That is why a 7% FD compounded quarterly actually yields about 7.19% a year (the effective yield shown above). The formula: maturity = P × (1 + r/n)nt, where n is the compounding frequency.
- Compounding frequency matters, a little. On a ₹1 lakh, 5-year FD at 7%, quarterly vs yearly compounding is worth roughly ₹1,300 extra. Small — but free money.
- Cumulative vs payout. This calculator assumes interest is reinvested (cumulative). If you take monthly/quarterly payouts instead, you earn simple interest only — no compounding.
- Breaking an FD early costs you. Most banks cut ~1% off the rate for premature withdrawal and pay the rate for the period actually completed. Only break an FD for a genuine emergency.
Tax on FD interest
FD interest is fully taxable at your slab rate — there is no special FD tax rate. Banks deduct 10% TDS when your interest crosses ₹50,000 in a year (₹1,00,000 for senior citizens, per Budget 2025). TDS is not your final tax: if you are in the 30% slab, you owe the rest; if you owe no tax, claim it back in your return. The 5-year tax-saving FD is the exception — its deposit qualifies for 80C deduction up to ₹1.5 lakh, but the interest is still taxable.