Calculators

FD Calculator

Maturity amount and interest on a bank fixed deposit, compounded quarterly the way Indian banks do it.

How it works

Cumulative FDs in India compound every quarter: each quarter's interest is added to the deposit and earns interest after that. For tenures that are not a whole number of quarters, the leftover months earn simple interest. Payout FDs send the interest to your account monthly or quarterly instead, so nothing compounds.

A = P × (1 + r/4)^(quarters) × (1 + r × leftover months ÷ 12)
P
Deposit
r
Annual interest rate as a decimal
Quarters
Complete quarters in the tenure
Yield
The yearly rate the compounding works out to

Worked example

₹1,00,000 in a 3-year cumulative FD at 7%.

  1. 1Rate per quarter: 7% ÷ 4 = 1.75%
  2. 2Quarters: 3 × 4 = 12
  3. 3Growth: 1.0175¹² = 1.23144
  4. 4Effective yield: 7.19% a year

The FD matures at ₹1,23,144, earning ₹23,144 of interest.

Frequently asked questions

How is FD interest taxed?

It is added to your income and taxed at your slab rate every year as it accrues, even in a cumulative FD that pays out only at maturity. Banks deduct 10% TDS once a year's interest at that bank crosses ₹50,000, or ₹1 lakh for senior citizens. Submit Form 15G or 15H if your total income is below the taxable limit.

Why does my bank's figure differ slightly?

Banks count interest by days, not months, and some use a 365-day year even in leap years. Deposits under 6 months usually earn simple interest. The difference is typically a few rupees.

Is my FD safe?

DICGC insures deposits up to ₹5 lakh per person per bank, covering principal and interest together, if a bank fails. Above that, the bank's own strength is what protects you, so large sums are often split across banks.

Can I break an FD early?

Yes, except tax-saver FDs, which lock in for 5 years. Banks usually pay the rate for the period the money actually stayed, minus a penalty of 0.5–1%.

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