How to use the FD Calculator
- Enter the deposit amount.
- Enter the bank's interest rate for your tenure (and category, e.g. senior citizen).
- Enter the tenure in years and months.
Formula
Maturity = P × (1 + r ÷ 4)^(4 × t)
- t:
- tenure in years (months ÷ 12 for part years)
Cumulative vs payout FDs
In a cumulative FD, interest is added back every quarter and paid with the principal at maturity — that's what this calculator shows. In a payout FD, interest is paid out monthly or quarterly, so it doesn't compound and the total return is lower.
Tax on FD interest
FD interest is added to your income and taxed at your slab rate. Banks may deduct TDS when interest crosses the threshold in the law; you can account for it when you file your return.
Worked example
₹1,00,000 at 7% for 1 year
- Maturity = 1,00,000 × (1 + 0.07 ÷ 4)⁴ = 1,00,000 × 1.0175⁴
₹1,07,185.90 (interest ₹7,185.90; effective yield 7.19%)
Frequently asked questions
Why is my bank's maturity amount slightly different?
Banks may count days rather than months for short tenures, and round at each quarter. Differences are usually a few rupees.
Is FD better than a SIP?
They serve different purposes. FDs offer predictable returns and low risk; equity SIPs aim for higher long-term growth with market risk. Many people hold both.