A Fixed Deposit is a lump-sum deposit with a bank or NBFC for a fixed tenure at a fixed interest rate, making it one of the most predictable ways to earn a guaranteed return in India. Most banks compound FD interest quarterly, which slightly increases the effective yield compared to simple annual interest.
Enter your deposit amount, the interest rate offered, and the tenure to see the maturity value and total interest earned.
FD Calculator
Calculate the maturity value of a fixed deposit with quarterly compounding.
Assumes quarterly compounding, the most common method used by Indian banks for FDs. TDS may apply if interest exceeds the threshold set by the bank/tax rules.
How FD maturity is calculated
This calculator uses FV = P × (1 + r/4)^(4t), reflecting quarterly compounding, where P is the deposit amount, r is the annual interest rate and t is the tenure in years. Some banks offer cumulative FDs (interest reinvested and paid at maturity, as calculated here) versus non-cumulative FDs (interest paid out periodically) — the maturity value shown here applies to the cumulative option.
FD interest and tax
Interest earned on a fixed deposit is fully taxable at your income tax slab rate, and banks deduct TDS if the interest earned in a financial year crosses the threshold specified under tax rules. Because of this, FDs tend to be more tax-efficient for investors in lower tax brackets compared to those in the highest slab, where post-tax FD returns can trail other debt options.
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Frequently asked questions
Is FD interest guaranteed?
Yes, unlike market-linked instruments, the interest rate on a fixed deposit is locked in at the time of booking (for the tenure chosen) and does not fluctuate with the market.
Is FD interest taxable?
Yes, FD interest is added to your total income and taxed at your applicable income tax slab rate; banks also deduct TDS once interest crosses the prescribed annual threshold.
What happens if I break my FD early?
Most banks charge a small penalty (commonly 0.5-1%) on the applicable interest rate for premature withdrawal; exact terms vary by bank.