FD Calculator

How a fixed deposit grows

A fixed deposit locks a lump sum with a bank for a chosen tenure at a rate fixed on the day you book it. Most Indian banks compound FD interest quarterly, meaning every three months the interest earned is added to your balance and the next quarter earns interest on the larger amount. The calculator uses the standard compound-interest formula with quarterly compounding to show your exact maturity value.

Because the rate is locked, an FD gives complete certainty about the final amount — a key reason it remains one of India's most popular savings instruments.

Why people choose an FD

The appeal is safety and predictability. Unlike equity or mutual funds, an FD's return does not depend on markets, and the principal is protected. Deposits are insured by the DICGC up to ₹5 lakh per depositor per bank. This makes FDs ideal for emergency funds, short-term goals, or the stable portion of a retiree's portfolio.

What affects your maturity value

• Deposit amount — the principal you lock in.
• Interest rate — varies by bank and tenure; senior citizens get a bonus.
• Tenure — longer terms usually carry higher rates and allow more compounding.
• Compounding frequency — quarterly is standard and slightly beats annual compounding.

Remember that the maturity figure is pre-tax. Interest is added to your income and taxed at your slab rate, and banks deduct 10% TDS once interest crosses ₹40,000 a year (₹50,000 for seniors).

Common mistakes to avoid

Many savers park all their money in a single long FD, then break it early and lose interest to penalties. A better approach is an FD ladder — several deposits maturing at different times — which keeps money accessible without sacrificing rates. Another mistake is ignoring the tax drag: after slab-rate tax, an FD's real return may barely beat inflation, so relying on FDs alone for long-term wealth rarely works. Finally, savers with income below the taxable limit often forget to file Form 15G or 15H, letting the bank deduct TDS unnecessarily.