Finance & Investing

Fixed Deposit Calculator

Calculate your FD maturity amount, total interest earned and effective yield. Compare simple vs compound interest, monthly vs quarterly vs annual compounding, and see the real post-tax return on your deposit.

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Updated April 2026
Before You Calculate

What Is a Fixed Deposit — and Is Your Money Actually Growing?

April 2026  ·  5 min read  ·  Keeroot Solutions

A Fixed Deposit (FD) is the savings instrument that has defined Indian household finance for generations. You deposit a lump sum with a bank or NBFC for a fixed period at a guaranteed interest rate — and unlike a savings account whose rate can change anytime, your FD rate is locked from day one. At maturity, you receive your principal plus accumulated interest. Simple, safe, predictable.

But "simple" doesn't mean "no decisions required." The choices you make when booking an FD — compounding frequency, cumulative vs non-cumulative payout, tenure, bank selection, and tax planning — can mean the difference of thousands or even lakhs in final returns on the same principal. This calculator exists to make those differences visible before you commit, not after.

The Compounding Frequency Difference Most People Miss

Most bank FDs compound interest quarterly as per RBI norms — but the same nominal rate with different compounding frequencies produces meaningfully different maturity amounts over long tenures. Consider ₹5 lakh at 7% for 5 years:

  • Annual compounding: Maturity ₹7,01,276 · Interest earned ₹2,01,276
  • Quarterly compounding: Maturity ₹7,07,904 · Interest earned ₹2,07,904
  • Monthly compounding: Maturity ₹7,09,926 · Interest earned ₹2,09,926

The difference between annual and monthly compounding on the same 7% rate: ₹8,650 extra over 5 years — from the same principal, at the same stated rate, just compounded more frequently. On ₹50 lakh, this difference is ₹86,500. Always check the compounding frequency, not just the headline rate.

The Real Return Question: What Does Your FD Actually Earn?

Most FD investors track gross maturity. Few track post-tax, inflation-adjusted real return — and the answer is often sobering. If you're in the 30% tax bracket, a 7% FD earns only 4.9% after tax. With inflation at 6%, your real purchasing-power return is negative: −1.1%/year. Your money grows in nominal terms but shrinks in real terms.

This doesn't make FDs bad — it makes them what they are: capital-preservation instruments, not wealth-building tools. They're ideal for emergency funds, short-term goals (1–3 years), risk-averse investors, and the fixed-income component of a diversified portfolio. For long-term wealth creation beyond 5 years, equity-linked instruments historically outperform FDs significantly on a post-tax, inflation-adjusted basis. This calculator shows you all four numbers — gross, post-tax, inflation-adjusted, and real yield — so you can make that comparison clearly.

Who Should Use This Calculator

Anyone considering or already holding an FD: first-time depositors comparing bank options, retirees evaluating monthly vs cumulative payout, high-income investors calculating their real post-30% tax returns, senior citizens checking the benefit of the 0.25–0.5% senior rate premium, and anyone doing FD laddering who wants to model different tenure-amount combinations. Also see our EMI Calculator if you're weighing FD investment against prepaying a loan, and our FD vs Mutual Fund guide for context on where FDs fit in a full portfolio.

⚠️ Disclaimer: Interest rates shown in the bank comparison table are indicative only — actual rates change frequently. Always verify current rates on the official bank website before booking. FD interest is taxable as income at your applicable slab rate. This tool is for planning only and does not constitute financial advice.
📊 What Your FD Result Really Means
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Calculate Your FD Returns

Enter your deposit amount, interest rate and tenure to find maturity amount and total interest earned

Monthly
n = 12 ✓
Quarterly
n = 4 (RBI norm)
Half-Yearly
n = 2
Annual
n = 1
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% / yr
yrs
mo
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🏢 FD Maturity Amount
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at maturity
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Interest Earned: —
FD Returns at a Glance
Maturity at Different Compounding Frequencies
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    Real Investor Examples

    Three Investors, Three Completely Different FD Outcomes

    Same instrument, very different situations. See how principal, tenure, tax slab, and compounding choice interact across real Indian investor profiles.

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    Ramesh — Retired Senior Citizen

    68 years old, 0% tax slab (Form 15H)

    Principal₹15,00,000
    Rate (senior +0.5%)7.75% p.a.
    Tenure3 years
    CompoundingQuarterly
    Gross maturity₹18,86,612
    Interest earned₹3,86,612
    TDS deducted₹0 (Form 15H)
    ✅ Optimal setup. Senior rate premium, no TDS via Form 15H, quarterly compounding, cumulative FD. Ramesh should also consider SCSS (8.2%) for a higher sovereign-backed rate on up to ₹30L.
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    Kavitha — Salaried Professional

    34 years old, 30% tax slab

    Principal₹5,00,000
    Rate7.25% p.a.
    Tenure5 years
    Gross maturity₹7,11,677
    Interest earned₹2,11,677
    Tax (30% slab)₹63,503
    Post-tax maturity₹6,48,174
    Effective yield~5.06% p.a.
    ⚠️ At 30% tax slab, Kavitha's real post-tax yield is ~5.06% — below current inflation of ~6%. Her purchasing power is declining. FD suits her only for the emergency fund component. For goals 5+ years away, equity mutual funds are likely to outperform after tax on an inflation-adjusted basis.
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    Suresh — Short-Term Goal Saver

    41 years old, 20% tax slab, home renovation in 18 months

    Principal₹8,00,000
    Rate7.50% p.a.
    Tenure18 months
    CompoundingQuarterly
    Gross maturity₹8,92,714
    Post-tax maturity₹8,74,171
    Interest earned₹92,714
    ✅ Perfect use case. Short-term goal with fixed horizon, capital safety priority, guaranteed returns. Suresh should confirm the FD tenure matches his renovation timeline exactly to avoid premature withdrawal penalties. Consider a Flexi-FD in case the timeline shifts.
    Avoid These Errors

    5 Common FD Mistakes That Cost Indian Investors Thousands

    1
    Comparing FDs by nominal rate instead of Effective Annual Yield (EAY). A bank offering 7.2% with monthly compounding is not the same as one offering 7.2% with annual compounding. The monthly-compounding FD has an EAY of 7.44% — a difference of 0.24 percentage points. On ₹10 lakh for 5 years, that difference is approximately ₹13,000 in additional interest. Always calculate or ask for EAY before comparing offers.
    2
    Putting more than ₹5 lakh in a single bank without thinking about DICGC coverage. DICGC insures all deposits at a bank (across savings, current, FD, RD accounts) up to ₹5 lakh per depositor per bank — not per account or per FD. If you have ₹20 lakh in FDs at one bank, ₹15 lakh is uninsured. Spread large deposits across multiple banks, or use government-backed instruments (SCSS, NSC, Post Office TD) for amounts above the insured limit.
    3
    Forgetting to submit Form 15G/15H — and paying avoidable TDS. If your total income (including FD interest) is below the taxable limit, you can submit Form 15G (under 60) or Form 15H (60+) at the start of each financial year to prevent the bank from deducting TDS. Many eligible investors miss this deadline and then have to claim a refund via ITR — an unnecessary process. Submit at the start of April each year to every bank where you hold FDs with significant interest.
    4
    Treating FD interest as tax payable only at maturity. FD interest accrues and is taxable every financial year — not just in the year the FD matures. On a 5-year FD, you must declare interest income in your ITR for each of the 5 years. The bank deducts TDS annually (or when the interest threshold is crossed). Many investors are surprised by a large tax bill at maturity because they hadn't accounted for the compounding of tax liability over the tenure.
    5
    Breaking the FD instead of taking a loan against it. When you need emergency funds, breaking an FD typically costs you 0.5%–1% penalty on the interest rate — and you lose the compounding benefit on the withdrawn amount. Most banks offer loans against FD at the FD rate + 1–2%. If you need ₹1–2 lakh temporarily and have a ₹10 lakh FD, borrowing against it for 2–3 months at 9% costs far less than breaking the FD and rebooking at a potentially lower current rate. Check this option before premature withdrawal.
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    Built & Maintained By
    Keeroot Solutions
    Digital Product Studio · Coimbatore, India · keeroot.com · Last updated: April 2026
    This FD Calculator is built and maintained by Keeroot Solutions, the team behind KeeHelper. The compound interest formula (A = P × (1 + r/n)^(nt)) is the standard RBI-aligned calculation. Bank rate data in the comparison table is sourced from public bank websites and updated periodically — always verify current rates directly with your bank before booking. Post-tax and real yield calculations use the standard income-tax formula and CPI inflation adjustment. All computation runs locally in your browser — no data is stored or transmitted.
    ✅ RBI-standard formula 🏦 Bank rates updated April 2026 🔒 No data stored 📅 Updated April 2026
    EMI Calculator SIP Calculator FD vs Mutual Fund Guide About KeeHelper

    FD Interest Rates — Major Banks

    Indicative rates for general and senior citizen FDs across tenures at top Indian banks

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    Rates are AI-sourced estimates for reference only. Verify exact rates with your bank before investing. Rates updated dynamically.

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    Cumulative vs Non-Cumulative

    Cumulative FDs reinvest interest and pay the full amount at maturity — better for wealth building. Non-cumulative FDs pay interest periodically (monthly/quarterly) to your savings account — ideal for retirees needing regular income.

    2 Types
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    Senior Citizen FD: 0.5% Extra

    All major banks offer 0.25%–0.5% premium to senior citizens (60+). Post Office's Senior Citizen Savings Scheme (SCSS) at 8.2% is the best guaranteed return for seniors — but limited to Rs.30 lakh total investment.

    8.2% SCSS
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    Tax-Saving FD: 80C Deduction

    5-year tax-saving FDs qualify for Rs.1.5 lakh 80C deduction under the old tax regime. However, the interest earned is still fully taxable. With a 30% tax slab, effective post-tax yield on a 7% FD is just ~4.9%.

    80C Benefit
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    Small Finance Banks: Up to 9%+

    Small Finance Banks (SFBs) like AU SFB, Unity, Suryoday offer FD rates of 8.5–9.5% — significantly higher than large banks. They are also covered under DICGC insurance up to Rs.5 lakh. Consider these for better yields on amounts within the insured limit.

    Higher Yield
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    Laddering: Don't Lock All at Once

    Instead of a single large FD at today's rate, split into multiple FDs maturing at different intervals (6 months, 1 year, 2 years). This "ladder" ensures you always have liquidity and can reinvest maturing FDs at prevailing rates, reducing interest rate risk.

    Smart Strategy
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    Premature Withdrawal Penalty

    Most banks charge 0.5%–1% penalty on premature FD withdrawal. A 7% FD broken early may earn only 6%–6.5%. Consider an Flexi-FD (overdraft against FD) for liquidity needs instead of breaking your FD — you pay interest only on the amount used.

    Plan Ahead

    How FD Returns Are Calculated

    Step-by-step from deposit amount and interest rate to maturity value, TDS deduction and real post-tax return

    Step by Step
    From Principal to Post-Tax Maturity
    • 1
      Enter Principal, Rate and Tenure

      The three basic inputs: how much you are depositing (principal), the interest rate the bank is offering (per annum), and the tenure in years and months. These fully define the FD contract.

    • 2
      Apply Compound or Simple Interest Formula

      Compound: A = P × (1 + r/n)^(n×t), where r is annual rate, n is compounding periods per year, and t is years. Simple: A = P × (1 + r×t). Most cumulative bank FDs use quarterly compounding (n=4) as mandated by RBI for savings instruments.

    • 3
      Compare All Compounding Frequencies

      The calculator shows maturity at monthly (n=12), quarterly (n=4), half-yearly (n=2) and annual (n=1) compounding so you can see exactly how much the compounding frequency affects your earnings. Monthly compounding always gives the highest maturity amount for the same nominal rate.

    • 4
      Calculate Post-Tax Returns

      FD interest is taxed as income. Post-Tax Interest = Gross Interest × (1 − Tax Rate). Post-Tax Maturity = Principal + Post-Tax Interest. At a 30% slab, Rs.1 lakh earned as FD interest retains only Rs.70,000 — the real maturity is substantially lower than the gross figure most calculators show.

    • 5
      Compute Inflation-Adjusted Real Return

      Real Maturity = Nominal Maturity / (1 + Inflation)^Years. This shows the purchasing power of your FD proceeds in today's rupees. At 6% inflation, a Rs.2 lakh FD maturity in 5 years is worth only Rs.1.49 lakh in today's money — a critical number for goal planning.

    Quick formula reference:
    Compound FD : A = P × (1 + r/n)^(n×t)
    Simple Interest: A = P × (1 + r×t)
    Post-Tax : Post-Tax Interest = Gross Interest × (1 − TaxRate)
    Real Return : Real Maturity = Nominal / (1 + Inflation)^Years

    Fixed Deposit Facts & Strategies

    Essential things every FD investor in India must know to maximise returns and minimise tax

    Did You Know?
    Smart FD Investing Tips
    📋
    FD Interest Is Taxed Every Year, Not on Maturity

    This surprises many investors: TDS on FD interest is deducted annually (or quarterly when it accrues). You must declare this income in your ITR every year, not just in the year the FD matures. For long-term FDs, keep records of accrued interest year by year to avoid a large tax bill at maturity.

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    DICGC Insurance: Only Rs.5 Lakh Per Bank

    Deposits are insured by DICGC up to Rs.5 lakh per depositor per bank (across all accounts and FDs at that bank). If you have Rs.20 lakh to invest, spread across 4+ banks for full insurance coverage. Do not put all deposits in one bank above the insured limit.

    📈
    Effective Yield Is Always Higher Than Nominal Rate

    A 7% FD compounded monthly has an Effective Annual Yield (EAY) of 7.229%, not 7%. The more frequent the compounding, the higher the EAY. When comparing FD offers from different banks, always convert to EAY for an apples-to-apples comparison. Small differences compound significantly over 3–5 years.

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    Flexi-FD: Best of Both Worlds

    Flexi or Sweep-in FDs automatically transfer excess savings account balance to FDs and sweep back when needed. You earn FD interest rates on idle money while maintaining instant liquidity. Most major banks offer this — link your savings account to a Flexi-FD for emergency funds that still earn 6–7%.

    👴
    Post Office Schemes Often Beat Bank FDs

    SCSS at 8.2% (senior citizens), NSC at 7.7%, Post Office TD (5yr) at 7.5% — these sovereign-backed instruments often offer higher rates than equivalent bank FDs and are backed by the Government of India (not just DICGC). Consider these for the 80C deduction bucket.

    🔥
    Real Return on FD Is Often Negative

    With inflation at 6% and a 30% tax slab, a 7% FD delivers a real post-tax return of only ~-0.9% per year. Your purchasing power is actually declining. FDs are safe but for long-term wealth-building, equity mutual funds or hybrid funds almost always outperform FDs on a post-tax, inflation-adjusted basis over 10+ years.

    📉
    NRI FDs: Tax-Free Interest on FCNR

    NRIs can invest in Foreign Currency Non-Resident (FCNR) deposits — interest is completely tax-free in India (though taxable in the country of residence). NRE FDs (INR denominated, repatriable) are also tax-free in India. These offer the combined benefit of FD safety and tax efficiency for non-resident Indians.

    🎭
    FD Laddering: The Smartest Strategy

    Split a large corpus into multiple FDs with staggered maturities — say 25% each for 1 year, 2 years, 3 years, and 4 years. Every year a tranche matures, reinvest at current rates. This averages out interest rate cycles, ensures annual liquidity, and avoids the risk of locking everything at a low rate just before a rate hike.

    Frequently Asked Questions

    Common questions about FD maturity, compounding, TDS and tax on fixed deposits

    What is the difference between cumulative and non-cumulative FDs?
    A cumulative FD reinvests the interest back into the principal at each compounding period. You receive the full maturity amount (principal + all compounded interest) only at the end. This gives you the benefit of compound interest and is ideal for wealth building. A non-cumulative (periodic payout) FD pays out the interest to your savings account monthly, quarterly or half-yearly. You do not benefit from compound interest on the paid-out portion, so the total earnings are lower — but you get regular cash flow, which suits retirees.
    How is TDS on FD calculated, and can I avoid it?
    Banks deduct TDS at 10% when FD interest in a financial year exceeds Rs.40,000 (Rs.50,000 for senior citizens). If your total income including FD interest is below the taxable limit (Rs.3 lakh under new regime / Rs.2.5 lakh under old), submit Form 15G (below 60) or Form 15H (60+) at the beginning of each financial year to prevent TDS deduction. TDS is not the final tax — you must declare the income in your ITR and pay tax at your actual slab rate, claiming credit for TDS already deducted.
    Is monthly compounding always better than quarterly?
    Yes, for the same nominal interest rate, more frequent compounding always produces a higher effective yield and maturity amount. Monthly compounding (n=12) gives a higher EAY than quarterly (n=4), which in turn beats half-yearly (n=2), which beats annual (n=1). The difference is small but compounds over multi-year tenures. However, banks rarely offer the same nominal rate with different compounding options — the RBI-mandated standard for bank FDs is quarterly compounding. When comparing FDs across banks, convert all to EAY before comparing.
    Should I prefer FD or debt mutual funds for safe returns?
    For tenures under 3 years, FDs often win due to certainty, DICGC insurance, and simpler taxation. For tenures above 3 years (before April 2023 tax changes), debt mutual funds offered indexation benefit and lower effective tax rates. After the 2023 budget change, gains on debt funds are taxed at the income slab rate — same as FDs — making the advantage narrower. FDs are still preferred for capital safety, predictability and DICGC insurance. Debt funds have slightly better liquidity and no TDS, but carry NAV risk and no insurance. Senior citizens with 30% slab may find SCSS, NSC or tax-free bonds more attractive.
    What happens if I break my FD before maturity?
    Premature FD withdrawal typically attracts a penalty of 0.5%–1% from the contracted rate. The bank will pay interest at the rate applicable for the period the FD actually ran, minus the penalty. For example, if you booked a 2-year FD at 7% and break it after 14 months, the bank might pay the 1-year rate (say 6.5%) minus 1% = 5.5%. To avoid this, consider a Flexi/Sweep-in FD, or take a loan against the FD at a small interest rate spread — typically 1–2% above FD rate — which is often cheaper than breaking the FD.
    Is this tool private? Is my deposit data stored?
    Yes, completely private. All calculations run entirely in your browser using JavaScript. Your principal amount, interest rate, tenure and tax slab are never sent to any server, stored in any database, or logged in any way. The tool works fully offline once the page has loaded. Your data disappears when you close or refresh the tab.