🏦 Finance Tool

FD Calculator

Calculate fixed deposit maturity amount, interest earned and effective annual yield for any compounding frequency. Compare multiple FDs instantly.

Deposit details
% p.a.
Tenure
Compounding frequency
🏦 Maturity Amount
₹0 Total value at maturity
₹0Principal
₹0Interest Earned
0%Eff. Annual Yield
Principal₹0
Interest Earned₹0
Total Maturity₹0
How compounding frequency affects your returns
FrequencyMaturityInterestEff. Yield
Calculation history
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Results are indicative. Actual FD returns may vary based on bank policy, tax deductions (TDS) and premature withdrawal penalties. Consult your bank for exact rates.

How is FD interest calculated?

Fixed deposits use compound interest where interest earned is reinvested each compounding period, growing your total at an accelerating rate.

Compound FD: A = P × (1 + r/n)^(n×t)
Simple FD: A = P × (1 + r×t)
Eff. Yield: EY = (1 + r/n)^n − 1
where: P=principal · r=annual rate · n=compounding freq · t=years
📅 Compounding frequency

More frequent compounding = more interest. Monthly gives marginally more than quarterly, which beats half-yearly and annual. The gap widens with higher rates and longer tenures.

💰 TDS on FD interest

Banks deduct TDS at 10% if annual FD interest exceeds ₹40,000 (₹50,000 for seniors). Submit Form 15G/15H if your total income is below the taxable limit to avoid TDS deduction.

🔓 Premature withdrawal

Breaking an FD before maturity attracts a penalty — typically 0.5–1% lower interest rate. Senior citizen FDs generally have higher rates (0.25–0.5% extra).

🛡️ DICGC insurance

Bank deposits are insured up to ₹5 lakh per depositor per bank by DICGC. For larger amounts, spread across multiple banks to maximise insurance coverage.

Frequently asked questions

FD interest uses compound interest: A = P × (1 + r/n)^(n×t). Simple interest FDs use A = P × (1 + r×t). Most bank FDs use quarterly compounding for both calculation and payout.
Simple interest pays interest only on the principal. Compound interest reinvests the interest, so you earn interest on interest. Compound interest always gives higher returns for the same rate and tenure.
Monthly compounding gives highest returns, followed by quarterly, half-yearly, and annual. The difference is small for typical rates but grows with higher interest rates and longer tenures.
Yes — FD interest is fully taxable as per your income slab. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if eligible.
Effective annual yield (EAY) shows the actual annual return considering compounding. EAY = (1 + r/n)^n − 1. A 7% rate compounded quarterly gives an EAY of 7.19%, meaning you effectively earn 7.19% annually.
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