Investment & Retirement

    FD Calculator

    Calculate the maturity value of a bank fixed deposit with quarterly compounding — as used by every Indian bank.

    Inputs
    %
    years
    Result
    Maturity Amount
    ₹1,41,478
    • Principal₹1,00,000
    • Interest Earned₹41,478
    • Effective Yield7.19%

    ₹1,00,000 at 7% for 5 years matures to ₹1,41,478.

    Visual Breakdown
    Step-by-step calculation
    1. Quarterly rate = 7/4/100 = 0.0175
    2. M = P × (1 + r/4)^(4×t) = ₹1,41,478
    3. Interest = M − P = ₹41,478
    How this is calculated
    M = P × (1 + r/n)^(n·t) where n = 4 for quarterly compounding
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Parking emergency-fund or short-term goal money safely.
    • Senior-citizen fixed-income planning (7.5–9% + Section 80TTB ₹50k deduction).
    • Building a 5-year FD ladder for rolling annual maturities.
    Overview

    Understanding the FD

    Fixed Deposits remain the cornerstone of Indian household savings — nearly ₹110 lakh crore parked across banks, small-finance banks and NBFCs. Rates range 6.5–8.25% for regular investors and 7–9% for senior citizens (0.5% add-on). This calculator returns maturity value under quarterly compounding (the RBI-mandated norm for FDs) for any principal, rate and tenure.

    FD interest is fully taxable at slab rates and TDS is deducted at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens; ₹1 lakh proposed FY25). Submit Form 15G/15H if income is below the exemption limit to avoid TDS. For laddering strategy, split the corpus across 5-year FDs opened annually to blend liquidity with rate stability.

    Worked examples

    Real-world scenarios, step-by-step

    ₹5 L FD @ 7.25% for 5 years (quarterly compounding)

    Retiree parks emergency corpus in a scheduled-bank FD.

    • n = 20 quarters | q-rate = 7.25/4 = 1.8125%
    • Maturity = 5,00,000 × (1.018125)^20
    • Maturity ≈ ₹7,15,850 | Interest ≈ ₹2.16 L
    Maturity ≈ ₹7.16 L.
    Rates & reference

    Indicative FD rates — 1-year tenure (Nov 2025)

    Bank tierRegularSenior
    PSU banks (SBI, PNB)6.75–7.00%7.25–7.50%
    Large private (HDFC, ICICI)7.00–7.25%7.50–7.75%
    Small finance banks8.00–8.50%8.50–9.00%
    Corporate FD (AAA)7.50–8.25%7.75–8.50%
    Pro tips

    Common mistakes to avoid

    Not submitting 15G/15H when eligible — TDS locks up funds till refund.

    Breaking large FDs entirely — request partial premature withdrawal.

    Ignoring DICGC ₹5 L insurance cap — split across banks for large corpus.

    Choosing cumulative when regular income is needed (or vice versa).

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Ladder 5 FDs (1–5 year tenures) — reinvest matured FD as new 5-year each year.

    • Book new FDs online — 5–15 bps extra vs branch counter.

    • Seniors: use Section 80TTB ₹50k deduction on interest income.

    Frequently asked questions

    Is FD interest taxable?+

    Yes. FD interest is taxable at your slab rate and TDS is deducted if interest crosses ₹40,000/year (₹50,000 for senior citizens).

    Is quarterly compounding standard?+

    Yes — all major Indian banks compound FD interest quarterly.

    Are premature withdrawals penalised?+

    Yes, typically 0.5%–1% below the applicable rate on the actual holding period.

    Keep exploring

    People also ask

    Does the calculator include the annual bonus?+

    The bonus / variable pay is shown separately since it is typically paid annually, not monthly.

    via In-Hand Salary Calculator
    Term or endowment insurance?+

    For pure risk cover, always term insurance. Endowment/ULIPs mix insurance with investment and typically deliver poor returns on both.

    via Life Insurance Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). FD Calculator — Taxpex. Retrieved from https://taxpex.com/tools/investment/fd-calculator
    HTML link
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