Fixed Deposit Calculator
Estimate fixed deposit maturity value and interest using principal, annual rate, tenure and compounding frequency.
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Results are estimates for general planning only. Actual charges, lender terms, tax rules and returns may differ. This calculator does not provide financial, investment, tax or lending advice.
Fixed Deposit Calculator: Guide, Formula & Banking Maturity Estimates
A Fixed Deposit (FD) is a secure investment instrument offered by banks and Non-Banking Financial Companies (NBFCs) in India that pays a guaranteed rate of interest for a predetermined tenure. Most commercial banks in India (such as SBI, HDFC, and ICICI) compound interest on a quarterly basis for cumulative deposits. Use our free FD calculator to estimate total interest earnings and maturity value across multiple tenures.
The Fixed Deposit Compounding Formula
For cumulative term deposits, the maturity amount ($A$) is calculated using the standard compound interest model:
A = P × (1 + r / n)^(n × t)
Total interest earned is calculated as $I = A - P$:
- A: Total maturity amount received upon completion of tenure.
- P: Principal deposit amount invested.
- r: Annual nominal interest rate in decimal form (e.g., $7.00\% = 0.07$).
- n: Compounding frequency per year ($4 = \text{Quarterly compounding}$, the standard practice in Indian retail banking).
- t: Total tenure in years (e.g., 18 months = $1.5$ years).
Benchmark FD Maturity Scenarios (₹1,00,000 Deposit @ 7.00% p.a. Quarterly Compounding)
| Deposit Tenure | Principal Invested | Effective APY | Interest Earned | Total Maturity Value |
|---|---|---|---|---|
| 1 Year (4 quarters) | ₹1,00,000 | 7.19% | ₹7,186 | ₹1,07,186 |
| 2 Years (8 quarters) | ₹1,00,000 | 7.19% | ₹14,888 | ₹1,14,888 |
| 3 Years (12 quarters) | ₹1,00,000 | 7.19% | ₹23,144 | ₹1,23,144 |
| 5 Years (20 quarters) | ₹1,00,000 | 7.19% | ₹41,478 | ₹1,41,478 |
Explore Related Financial Tools
Compare fixed guaranteed banking returns against regular market investments or debt repayment:
- Compare guaranteed FD returns with market equity gains on the SIP Calculator.
- Model compounding growth across customized intervals with the Compound Interest Calculator.
- Calculate non-compounding short-term deposit returns on our Simple Interest Calculator.
- Plan loan servicing and repayments on the EMI Calculator.
- Browse the complete suite on the FinPath Calculators Directory.
Frequently Asked Questions
Why do Indian banks compound FD interest on a quarterly basis?
In accordance with Reserve Bank of India (RBI) guidelines, domestic commercial banks compound interest every quarter on term deposits with tenures of 6 months and above. This produces an effective annual return (APY) slightly higher than the quoted nominal rate.
Is TDS deducted on Fixed Deposit interest?
Yes. In India, banks deduct 10% Tax Deducted at Source (TDS) if total interest across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If PAN is not provided, TDS is deducted at 20%.
What is the difference between cumulative and non-cumulative FDs?
In a cumulative FD, interest is reinvested quarterly and paid in lump sum at maturity. In a non-cumulative FD, interest is disbursed directly to your savings account at monthly, quarterly, or half-yearly intervals.
Statutory Notice: This calculator provides illustrative mathematical projections based on constant quarterly compounding. Actual bank maturity values may vary marginally due to specific day-count conventions, TDS deductions, or premature withdrawal penalties.
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