What is a FD Calculator?
A fixed deposit pays a rate that is agreed on the day you open it and does not move, which is the whole point of one. What is less obvious is how often the interest compounds, and that changes the maturity figure more than people expect.
Enter the deposit, the rate and the tenure and the tool returns the maturity amount, the interest earned and what you put in. Compounding defaults to quarterly, which is the convention for Indian bank FDs, and can be changed.
On a five year deposit the difference between yearly and quarterly compounding at the same headline rate is real money. When you compare two banks, compare the compounding frequency as well as the rate, because the advertised rate alone does not tell you the maturity value.
Frequently asked questions
How is FD interest calculated in India?
Most banks compound quarterly. The maturity amount is the principal multiplied by one plus the quarterly rate, raised to the number of quarters. A one year FD at 7 percent compounded quarterly matures slightly above 7 percent because each quarter earns on the previous quarter’s interest.
Is FD interest taxable?
Yes. Interest on a fixed deposit is added to your income and taxed at your slab rate. Banks deduct TDS once the interest for the year crosses the threshold, and that TDS is adjusted against your final liability rather than being a separate tax.
What happens if I break the FD early?
Banks usually pay the rate applicable for the period the money actually stayed, minus a penalty of around half to one percent. This calculator shows the maturity figure for the full tenure, so a premature withdrawal will be lower.
Does this send my figures anywhere?
No. The arithmetic runs in your browser and nothing is transmitted or stored.