FD Calculator Fixed Deposit Interest Estimation
Calculate the maturity amount and interest earned on your Fixed Deposit
Plan your savings better by understanding how much your Fixed Deposit will be worth at maturity with different compounding frequencies.
Calculate FD Returns
💡 Tip: Higher compounding frequency (monthly vs yearly) results in better returns due to more frequent interest calculation.
Understanding Fixed Deposits
What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. The principal and interest are paid at maturity.
- Guaranteed returns with minimal risk
- Fixed tenure from 7 days to 10 years
- Interest compounded quarterly or monthly
Benefits of FD
- Safe and secure investment option
- Higher interest rates than savings accounts
- Disciplined savings habit
- Loan against FD facility available
Compounding Frequency Options
Monthly
Interest compounded every month. Highest returns.
Quarterly
Most common option. Compounded every 3 months.
Half-Yearly
Interest compounded twice a year.
Yearly
Annual compounding of interest.
How It Works
This calculator uses the compound interest formula to calculate FD maturity amount:
A = P × (1 + r/n)^(n×t) - • A = Maturity Amount
- • P = Principal deposit amount
- • r = Annual interest rate (decimal)
- • n = Number of times interest is compounded per year
- • t = Time period in years
Why Our FD Calculator Stands Out
Multiple Compounding Options
Calculate FD returns with monthly, quarterly, half-yearly, and yearly compounding frequencies to find the best option.
Accurate Interest Rates
Based on current Indian bank FD rates (5-8% for regular deposits, higher for senior citizens) to give you realistic projections.
Detailed Breakdown
See complete maturity details including principal amount, interest earned, and total maturity value in an easy-to-understand format.
How to Use the FD Calculator
Enter Deposit Amount
Input the amount you want to invest in a Fixed Deposit. Most Indian banks accept FDs starting from ₹1,000.
Set Interest Rate
Enter the annual interest rate offered by your bank. Current rates typically range from 5-8% for regular FDs and up to 8.5% for senior citizens.
Choose Tenure & Compounding
Select your FD tenure in years and choose the compounding frequency. Monthly compounding typically offers better returns than yearly.
View Maturity Details
See your maturity amount, total interest earned, and effective returns. Compare different compounding frequencies to maximize returns.
Frequently Asked Questions
What is the current FD interest rate in India?
FD interest rates in India (as of 2025) typically range from 5% to 8% for regular deposits, depending on the bank and tenure. Senior citizens can get an additional 0.25-0.5% higher interest rate. Public sector banks like SBI offer around 6-7%, while some small finance banks offer up to 8-8.5%.
Is FD interest taxable in India?
Yes, FD interest is taxable under "Income from Other Sources" and added to your annual income. Banks deduct 10% TDS if your interest income exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
Can I withdraw FD before maturity?
Yes, most banks allow premature withdrawal of FDs, but you'll receive a lower interest rate (usually 1% less than the original rate) and may have to pay a penalty of 0.5-1%. Some banks offer flexi-FD options where you can withdraw partially without breaking the entire deposit.
Which is better - monthly or quarterly compounding for FD?
Monthly compounding gives better returns than quarterly or yearly compounding because interest is calculated and added to the principal more frequently. However, the difference is usually small. For example, on a ₹1 lakh FD at 7% for 1 year: monthly compounding gives ₹7,229 vs ₹7,186 for quarterly compounding - a difference of just ₹43.
Are fixed deposits safe in India?
FDs in scheduled banks are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation) up to ₹5 lakh per depositor per bank. This makes FDs one of the safest investment options in India, backed by government guarantee. However, returns are typically lower than market-linked investments.
What is the minimum and maximum tenure for FD?
The minimum FD tenure is typically 7 days to 14 days, depending on the bank. Maximum tenure can go up to 10 years. Generally, longer tenures offer higher interest rates, but it's important to consider liquidity needs. Tax-saving FDs under Section 80C have a mandatory 5-year lock-in period.