What is a fixed deposit (FD)?
A fixed deposit is a savings product where you lock a lump sum with a bank, small finance bank or post office for a fixed period at a guaranteed interest rate. It's one of the most popular low-risk investments in India because the return is known in advance. This FD calculator shows exactly how much you'll receive at maturity and how much of it is interest.
How to use the FD calculator
- Enter your deposit amount and the interest rate your bank offers.
- Set the tenure in years and months.
- Choose the compounding frequency — quarterly is standard for cumulative FDs at Indian banks. Pick "Simple interest" for an FD that pays out interest regularly.
FD maturity formula
A = P × (1 + r ÷ n)n × t
- A = maturity amount, P = deposit
- r = annual interest rate (as a decimal)
- n = compounding periods per year (4 for quarterly)
- t = tenure in years
Example
A ₹1,00,000 FD at 7% for 5 years, compounded quarterly: A = 1,00,000 × (1 + 0.07 ÷ 4)20= ₹1,41,478. You earn ₹41,478 in interest — an effective yield of about 7.19% a year, slightly higher than the 7% headline rate thanks to quarterly compounding.
Tips for FD investors
- Ladder your FDs — split money across 1, 2 and 3-year deposits so some matures every year.
- Compare small finance banks, which often pay 0.5–1% more (still DICGC-insured up to ₹5 lakh).
- Consider tax: in the 30% slab, a 7% FD earns only about 4.8% after tax. A 5-year tax-saver FD qualifies for Section 80C under the old regime.
- For monthly savings rather than a lump sum, use the RD calculator.
Disclaimer: Results are estimates for educational purposes only and are not financial, investment or tax advice. Please verify with your bank, broker or a SEBI-registered adviser before acting. Read the full disclaimer.