FD Calculator
See your fixed-deposit maturity value, total interest and effective annual yield live — for any compounding frequency, with a TDS estimate.
Year-wise growth
Compounded quarterly| Year | Opening balance | Interest earned | Closing balance |
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Disclaimer: Indicative estimate assuming a fixed rate for the full tenure and cumulative (reinvested) interest. Actual maturity, TDS and tax depend on your bank's terms, PAN/Form 15G-15H status and your slab. Not investment advice.
How a fixed deposit grows
A fixed deposit pays compound interest: each period's interest is added to your balance and itself earns interest next period. The more frequently the bank compounds (most compound quarterly), the higher your maturity value for the same nominal rate. The formula is A = P × (1 + r ÷ (100 × f))f × t, where f is the number of compounding periods per year.
Compounding frequency & TDS rules
The same 7% rate gives a different effective yield depending on how often it compounds. Banks also deduct TDS on the interest they credit each year — here is a quick reference.
| Monthly | f = 12 |
| Quarterly (most common) | f = 4 |
| Half-yearly | f = 2 |
| Yearly | f = 1 |
| General depositor threshold | ₹40,000 / yr |
| Senior citizen threshold | ₹50,000 / yr |
| TDS rate (PAN available) | 10% |
| TDS rate (no PAN) | 20% |
Worked example
A ₹1,00,000 deposit at 7% p.a. compounded quarterly for 5 years. Here i = 0.07 ÷ 4 = 0.0175 per quarter, and n = 4 × 5 = 20 quarters, so A = 1,00,000 × (1.0175)²⁰ ≈ ₹1,41,478.
Key terms explained
Maturity value (A)
The total amount you receive at the end of the tenure — your principal plus compound interest. This is the headline figure in a cumulative FD where interest is reinvested rather than paid out.
Effective annual yield
The true annualised return once compounding is included: (1 + r/(100·f))f − 1. For a 7% quarterly FD it works out to about 7.19%, higher than the stated 7%.
TDS u/s 194A
Banks deduct 10% tax at source on FD interest once it crosses ₹40,000 a year (₹50,000 for seniors). It is a prepayment of your tax, credited when you file your ITR, not a separate charge.
Taxability of interest
FD interest is fully taxable under "Income from Other Sources" at your slab rate. If your slab is above 10%, you pay the balance tax over TDS; if below, you can claim a refund.
How is fixed deposit maturity calculated?
Most banks compound interest quarterly: maturity = principal × (1 + r/4)^(4 × years). A monthly or quarterly payout FD pays the interest out instead of compounding it, so the maturity value equals the principal.
Is FD interest taxable?
Yes, fully, at your slab rate, and it is taxable on accrual each year — not only when the FD matures. Senior citizens can deduct up to ₹50,000 of interest under section 80TTB, and others up to ₹10,000 of savings-account interest under 80TTA, both only under the old regime.
When does the bank deduct TDS on an FD?
Under section 194A when interest across your deposits at that bank exceeds ₹50,000 in a year (₹1,00,000 for senior citizens). TDS is 10%, or 20% if PAN is not given. Submit Form 15G or 15H if your total income is below the taxable limit.
Is a tax-saving FD different?
Yes. A five-year tax-saving FD qualifies for deduction under section 80C up to ₹1.5 lakh, but it has a lock-in of five years, cannot be prematurely withdrawn or pledged, and the interest remains fully taxable.
What happens if I break an FD early?
The bank pays interest at the rate applicable for the period actually run, not the contracted rate, and usually applies a penalty of 0.5% to 1%. The effective return can be much lower than the headline rate.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.