MyFinCards

FD Calculator

Indian banks compound fixed deposits quarterly, so the maturity value is always a little above what the advertised rate alone suggests — and below six months no quarter completes, so the deposit earns simple interest instead. Both rules are applied here and stated on the page. Depositing monthly rather than in one go? Use the RD calculator.

₹1,00,000
₹5,000₹1,00,00,000
6.5%
1%15%
5 Yr
1 Yr25 Yr
Invested amount₹1,00,000
Est. returns₹38,042
Total value₹1,38,042

What the Maturity Value is Made Of

Maturity Value

₹1,38,042

Indian banks compound fixed deposits quarterly, so a quoted 6.5% is applied as 1.625% four times a year. The effective annual yield is 6.660%, not 6.5% — which is why a maturity value is always a little above what simple arithmetic on the advertised rate suggests. Depositing monthly rather than in one go? Use the RD calculator.

Worked Example: ₹1,00,000 for 5 Years

You deposit ₹1,00,000 at 6.5% for 5 years. The bank credits 1.625% at the end of each of the 20 quarters, and the next quarter earns on the larger balance.

You deposit

₹1,00,000

once, at the start

Interest earned

₹38,042

compounded 20 times

Maturity value

₹1,38,042

before TDS and tax

FD interest is taxed at your slab rate

Not as capital gains — as ordinary income, in the year it accrues, whether or not you have withdrawn it. Banks deduct TDS once interest crosses ₹50,000 in a year (₹1,00,000 for senior citizens). In the 30% bracket this ₹38,042 is really about ₹26,629, which is what to compare against any other investment.

What this Calculator Does

It turns a deposit, a rate and a tenure into a maturity value, and splits that value into your principal and the interest. It also shows the effective annual yield that quarterly compounding produces, which is the figure to compare against any other investment — not the rate on the bank's poster.

How to Use It

1

Set the amount you are depositing.

2

Set the rate the bank is quoting you.

3

Pick years, months or days, then set the tenure.

4

Read the maturity value, and the effective yield in the note below it.

What It Does Not Include

FD interest is taxed as ordinary income at your slab rate, in the year it accrues, whether or not you have withdrawn it — not as capital gains. Banks deduct TDS once interest crosses ₹50,000 in a year. Premature withdrawal penalties are also excluded, and they typically cost around 1% of the rate.

Expert FAQ

Frequently Asked Questions

Banks compound fixed deposits quarterly. The maturity value is P × (1 + R/400)^(4×T), where P is the deposit, R the annual rate in percent and T the tenure in years. The division by 400 is the quarterly rate; the exponent is the number of quarters.
Because of the quarterly compounding. Interest credited at the end of each quarter earns interest for the remaining quarters. A 6.5% FD has an effective annual yield of 6.660%, so over a long tenure the gap against simple arithmetic is substantial.
No. Below about six months no compounding quarter completes, so banks pay simple interest pro rata for the period. Deposits quoted in days always work this way. This calculator switches method automatically and says which one it used.
Yes, as ordinary income at your slab rate, in the year it accrues rather than the year you withdraw. In the 30% bracket a 6.5% FD is really yielding about 4.6%, which is what to compare against inflation.
Once interest paid to you crosses ₹50,000 in a financial year (₹1,00,000 for senior citizens), at 10% if your PAN is on record. TDS is not the final tax — you still owe the difference between it and your slab rate when you file.
An FD gives a contractual rate and capital protection up to ₹5 lakh of deposit insurance. A debt fund gives no guarantee but its gains are only taxed on redemption, not annually, which matters over a long holding. The right comparison is post-tax, not headline rate against headline return.
You get the rate applicable to the period the deposit actually ran, usually minus a penalty of around 0.5% to 1%. On a short holding that can leave you with less than the advertised rate would suggest, which is why laddering several smaller FDs often beats one large one.
Most banks add 0.25% to 0.75% for depositors over 60, and some offer a further premium over 80. Enter the rate you are actually being quoted — this calculator does not assume an age-based uplift.
Splitting one deposit across several tenures so that one matures each year. It keeps part of the money accessible without breaking the whole deposit, and it averages out rate changes rather than locking everything in at one moment.
The arithmetic is, given the rate and tenure you entered. The rate itself is contractual for the tenure of the deposit, which is what distinguishes an FD from a market-linked investment. Tax and any premature withdrawal penalty are not included.