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Fixed Deposit Calculator

A fixed deposit locks a lump sum with a bank at a fixed rate for a fixed tenor, so the maturity amount is known the day you book it. It suits money that must not move — an emergency buffer beyond six months, a down payment due in two years. Banks quote one annual rate, but how often it compounds decides what you receive. This calculator shows the maturity value, interest earned and real yearly yield.

Enter values

The lump sum you park with the bank

Annual rate your bank quotes — enter 0 for a zero-rate deposit

Results update as you type.

Results

Maturity value
₹1,42,174.67
Interest earned
₹42,174.67
Effective annual yield
7.29%
035.5K71.1K1.1L1.4LY1Y2Y3Y4Y5
  • Balance at year end

How is the Fixed Deposit calculated?

Enter the amount you are depositing, the annual rate your bank quotes, the tenor in years and the compounding frequency — quarterly is the norm for Indian banks and the default here. The calculator compounds the deposit over every period, returns the maturity value and the interest earned, and reports the effective annual yield so deposits that compound differently can be compared honestly. The line chart plots the year-end balance, which is the curve your money actually follows.

Formula

A = P × (1 + r ÷ n)^(n × t)

where:
P = principal (deposit amount)
r = annual interest rate as a decimal (7.1% → 0.071)
n = compounding periods per year (4 = quarterly)
t = tenor in years

Effective annual yield = (1 + r ÷ n)^n − 1. A 7.1% rate compounded quarterly really returns about 7.29% a year.

Example

Deposit: ₹2,00,000 · Rate: 7.1% per year · Tenor: 5 years · Compounded quarterly
Maturity value ≈ ₹2,84,349 · Interest earned ≈ ₹84,349
The first year alone adds about ₹14,583, and the effective annual yield is 7.29%. Compare that with plain simple interest at the same rate, which would pay only ₹71,000 across five years — compounding quietly adds roughly ₹13,350 more.

Things to remember

An FD's maturity amount is guaranteed for its tenor — no market risk required. Two things decide the outcome: the rate you book (compare small finance banks with PSU banks, within DICGC's ₹5 lakh cover per bank) and the tax, paid at your slab rate. Build the emergency fund first; then let the deposit do its job.

Frequently Asked Questions

How is fixed deposit interest calculated?

Banks compound FD interest — usually quarterly — with A = P × (1 + r ÷ n)^(n × t). You deposit a principal P at annual rate r, compounded n times a year for t years, and receive the compounded maturity amount. The gap between that figure and simple interest is exactly what earns you more than a savings account.

Which banks currently offer the best FD rates?

Small finance banks and some private banks typically lead, quoting 7–8% where large PSU banks often sit closer to 6.5–7%. Higher rates carry the usual caution: deposits up to ₹5 lakh per bank are insured by DICGC, so laddering across two banks can lift the rate without lifting the risk.

Can I break a fixed deposit before maturity?

Yes, as a premature withdrawal. The bank pays the rate applicable to the shorter period, often with a penalty of 0.5–1% slashed from it, so a five-year deposit broken in year two earns materially less than the booked rate. Match the tenor to when you actually need the money.

Is fixed deposit interest taxable?

Yes — FD interest is added to your income and taxed at your slab rate. Banks deduct TDS under Section 194A once interest crosses ₹40,000 in a year (₹50,000 for senior citizens), unless you file Form 15G or 15H declaring that your total tax liability is zero.

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