Calculate your Fixed Deposit maturity amount and interest earned instantly.
An FD Calculator estimates the maturity amount and interest earned on a fixed deposit investment, based on the principal amount, interest rate, tenure, and compounding frequency. Fixed deposits are a popular low-risk savings instrument where a lump sum is deposited with a bank for a fixed period at a guaranteed interest rate, making it easy to project exactly how much the investment will be worth at maturity.
For compound interest FDs, Maturity Amount = Principal × (1 + r/n)^(n×t), where r is the annual interest rate, n is the number of times interest compounds per year (commonly quarterly for many FDs), and t is the tenure in years. For simple interest FDs, Maturity Amount = Principal + (Principal × Rate × Time), though most bank fixed deposits use compound interest, typically compounded quarterly.
Enter the principal deposit amount, the annual interest rate offered, the tenure of the deposit, and the compounding frequency (usually quarterly for standard bank FDs). The calculator returns the maturity amount and the total interest earned over the deposit period.
Example 1: A fixed deposit of 1,00,000 at 7% annual interest, compounded quarterly, for 5 years grows to approximately 1,41,000, earning roughly 41,000 in interest over the period.
Example 2: The same 1,00,000 deposit at a higher 8% annual interest rate for the same 5-year tenure grows to approximately 1,48,600, illustrating how even a one percentage point difference in rate meaningfully affects the final maturity amount over a multi-year term.
More frequent compounding means interest is calculated and added to the principal more often, allowing subsequent interest to be earned on a slightly larger base sooner, so quarterly compounding produces a marginally higher maturity amount than annual compounding at the same nominal rate.
Most banks allow premature withdrawal but typically apply a penalty, often a reduction in the effective interest rate applied to the actual holding period, meaning early withdrawal generally results in earning less interest than originally projected at the full tenure.
Yes, the interest rate on a fixed deposit is locked in at the time of deposit and doesn't change with market fluctuations during the tenure, making FDs a predictable, low-risk investment option compared with market-linked instruments like mutual funds or stocks.
In most jurisdictions, FD interest is added to the depositor's taxable income and taxed according to their applicable income tax slab, and banks may deduct tax at source once interest earned crosses a specified threshold, so it's worth factoring in the post-tax return when comparing FDs against other investments.
A cumulative FD reinvests the interest earned back into the principal, compounding until maturity when the full lump sum is paid out, while a non-cumulative FD pays out interest at regular intervals (monthly, quarterly, or annually) as regular income rather than compounding it.
Many banks offer a preferential interest rate, often 0.25% to 0.50% higher, for senior citizen depositors as a standard policy, making fixed deposits a particularly popular retirement income option for older investors seeking predictable, low-risk returns.
This depends on your liquidity needs and rate expectations; longer tenures typically lock in a rate for an extended period (beneficial if rates are expected to fall), while shorter tenures offer more flexibility to reinvest at potentially higher rates if interest rates are expected to rise.
Compared with savings accounts, FDs typically offer higher interest rates in exchange for reduced liquidity, while compared with government bonds or debt mutual funds, FDs offer simplicity and capital protection but potentially lower returns and less tax efficiency depending on the specific instrument and holding period.
Tax-saving FDs offer a deduction on the invested amount under specific tax provisions but come with a mandatory lock-in period, typically five years, during which premature withdrawal is not allowed, making them less flexible than a regular FD in exchange for the tax benefit.
Yes, a strategy called FD laddering involves splitting savings across several FDs with staggered maturity dates, providing periodic liquidity access while still benefiting from generally higher long-term interest rates on the longer-tenure portions.
If the FD's interest rate is lower than the prevailing inflation rate, the real purchasing power of the invested money can actually decline over time, which is why it's important to compare FD rates against inflation expectations rather than looking at the nominal rate alone.