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FD Calculator
Maturity value of a fixed deposit with quarterly compounding.
Principal
₹1,00,000
Interest
₹41,478
Maturity
₹1,41,478
How it works
Fixed Deposits pay a pre-agreed rate for a fixed tenure. Indian banks compound interest quarterly by default. The rate is locked at the time of booking, so an FD is a way to freeze today's rate.
The formula
M = P × (1 + r/4)^(4 × t)- M
- Maturity value
- P
- Deposit amount
- r
- Annual interest rate (decimal)
- t
- Tenure in years
Worked example
₹1,00,000 for 5 years at 7% → maturity ~₹1,41,478. Post-tax at 30% slab, effective annual yield drops to ~4.9%.
Pro tips
- Split into multiple FDs of ≤ ₹5 lakh across banks — that's the DICGC insurance cap per bank.
- Senior citizens get 0.5% extra; use Form 15G/H if income is below the taxable slab to avoid TDS.
- For very short tenures (< 6 months) liquid funds may beat FDs after tax.
- Break FDs strategically — penalty is usually 0.5–1%; sometimes worth it if rates jump.
Common mistakes
- Forgetting FD interest is fully taxable at your slab; the sticker rate is misleading.
- Auto-renewing without checking new rates — banks sometimes silently drop the rate at renewal.
- Assuming FDs beat inflation; historically they roughly match it, not beat it.
Go deeper
Related lessons
Concepts to explore
DICGC insuranceCumulative vs non-cumulative FDTax-saving FD (5-year lock-in)
Results are illustrative and do not include taxes, fees, or slippage. This is educational content — not investment, tax, or legal advice.