FD Calculator
Compute the maturity, interest earned and effective annual rate of a fixed deposit in India. Free FD calculator with quarterly, monthly and annual compounding.
A Fixed Deposit, or FD, is the most familiar safe investment in India. You park a lump sum with a bank or NBFC for a chosen tenure, and the institution pays a contracted interest rate, typically compounded quarterly. The FD calculator on this page tells you the maturity value, the total interest earned and the effective annual rate, given your principal, the rate, the tenure and the compounding frequency.
Fixed Deposit
Why use the FD Calculator
FDs feel simple but they hide a few details that affect the actual return. The compounding frequency moves the maturity by a meaningful amount over long tenures. Senior citizens get a 50 basis point premium at most banks. TDS at 10 percent kicks in if interest crosses 40,000 in a financial year, which can change the effective post tax yield. The calculator surfaces the gross numbers cleanly, leaving you to layer your tax slab on top.
Benefits at a glance
Maturity at any compounding frequency
Toggle between annual, half yearly, quarterly, monthly and daily compounding. Most Indian bank FDs use quarterly. Some company FDs use half yearly or monthly. The calculator handles all five.
Effective annual rate exposed
A 7 percent FD compounded quarterly has an effective annual rate of 7.19 percent. The calculator shows both the nominal and the effective rate, useful for comparing FDs from different issuers with different compounding conventions.
Useful for senior citizens
Adjust the rate to your senior citizen rate (typically 50 basis points above the regular rate at most public and private sector banks). The calculator handles fractional rates.
Visualise yearly growth
The growth chart shows the balance year by year. The curve is gentle but steady, the visual signature of a low risk fixed return product.
How to use the FD Calculator
- 1
Enter the principal
The amount you plan to deposit. FDs in India have minimum amounts as low as 1,000 rupees and no upper cap. Tax saver FDs (5 year lock in, 80C eligible) have a 1.5 lakh annual limit.
- 2
Enter the interest rate
Use the rate offered by the bank or NBFC. SBI 1 to 5 year FDs are typically 6.5 to 7 percent. Senior citizens get 50 basis points more. Small finance banks and NBFCs may offer 7.5 to 8.5 percent for higher credit risk.
- 3
Set the tenure
FD tenures range from 7 days to 10 years. Most popular tenures are 1 year, 2 to 3 years and 5 years. The 5 year tax saver FD has a hard lock in.
- 4
Choose the compounding frequency
Quarterly is the default for most Indian bank FDs. Some company FDs use half yearly or monthly. Read the FD application form to confirm.
- 5
Read the maturity and interest
The maturity is the gross amount you receive at the end of the tenure. The interest earned is the total above your principal. Subtract TDS and any further tax at your slab rate to estimate the net return.
Frequently asked questions
What is the difference between cumulative and non cumulative FD?
A cumulative FD pays the interest at maturity along with the principal, with the interest reinvested at the same rate during the tenure. A non cumulative FD pays the interest periodically (monthly, quarterly or annually) to your bank account, leaving the principal intact. Cumulative gives a higher final maturity due to compounding. Non cumulative provides regular income.
How is FD interest taxed in India?
FD interest is added to your taxable income and taxed at your slab rate. Banks deduct TDS at 10 percent if total interest exceeds 40,000 in a financial year (50,000 for senior citizens). If you submit Form 15G or 15H (for those whose total income is below the taxable threshold), TDS can be avoided. The 10 percent TDS is a credit against your final tax liability, not a flat rate.
What is a tax saver FD?
A tax saver FD is a 5 year FD that qualifies for Section 80C deduction up to 1.5 lakh combined with other 80C investments. The lock in is hard, no premature withdrawal allowed. The interest is fully taxable at slab rate. Useful for old regime taxpayers who want a guaranteed return option within their 80C limit.
Should I break my FD early?
Most Indian bank FDs allow premature withdrawal with a penalty of 0.5 to 1 percent reduction on the applicable rate (the lower of the contracted rate or the rate that would have applied for the actual tenure held). Tax saver FDs cannot be broken before 5 years. If the alternative use of the funds earns significantly more than the FD rate, breaking may be worthwhile.
Are FDs covered by deposit insurance?
Yes. Bank FDs in India are covered by DICGC up to 5 lakh per depositor per bank. This includes both principal and interest. Spread large deposits across multiple banks if total exposure exceeds the cap. NBFCs and corporate FDs are not covered by DICGC and carry credit risk of the issuer.
Are NBFC and corporate FDs safer than bank FDs?
Generally no. NBFC and corporate FDs offer higher rates (often 100 to 200 basis points above bank FDs) precisely because they carry higher credit risk. Stick to AAA or AA rated issuers and check the issuer's credit ratings before investing. The DICGC insurance does not apply.
Should I split my FD across multiple banks?
Yes if your total deposit exceeds the 5 lakh DICGC insurance cap at a single bank. Spreading deposits keeps the entire amount insured. Many depositors split between two or three large public and private sector banks for the additional safety margin.
Final word
Fixed deposits remain a useful low risk anchor in any portfolio, especially for the emergency corpus and short term goals. Use the calculator to compare maturity values across banks, across compounding frequencies and across tenures. The headline rate is rarely the full picture, and the effective annual rate is the cleanest number to use when comparing competing offers.
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