How this FD calculator works
A fixed deposit pays interest that is added back to your balance at regular intervals, so later interest is earned on earlier interest. This is compound interest. Most Indian banks compound FD interest quarterly, which is why the default here is quarterly.
Maturity = P × (1 + r ÷ n)n × tP is the deposit, r is the yearly rate as a decimal, n is the number of compounding periods per year and t is the tenure in years. The effective yearly yield shows what the stated rate really earns after compounding, which is slightly higher than the headline rate.
Things to remember
- Interest is taxable. FD interest is added to your income and taxed at your slab rate. Banks may deduct TDS above a yearly interest limit, and you can submit Form 15G or 15H if your total income is below the taxable limit.
- Premature withdrawal usually has a penalty. Banks often reduce the interest rate if you break an FD early.
- Compare effective yield, not just the headline rate. A monthly-compounding FD at the same stated rate earns slightly more than a yearly one.
Some banks pay interest out instead of compounding it, in which case your maturity value will match the deposit and the payouts will arrive separately. This tool assumes the interest is reinvested.
Frequently asked questions
How is FD maturity amount calculated?
Maturity = P x (1 + r/n)^(n x t), where P is the deposit, r is the yearly rate as a decimal, n is the compounding periods per year and t is the tenure in years.
Do banks compound FD interest quarterly?
Most do, which is why quarterly is the default here. Check your bank's terms, because some use other schedules or pay interest out.
Is FD interest taxable?
Yes. It is added to your income and taxed at your slab rate. Banks may deduct TDS once your interest crosses a yearly limit.
What is effective yield?
It is the actual yearly return after compounding. It is a little higher than the stated rate when interest compounds more than once a year.
Last reviewed October 15, 2026. Results are estimates.