How the fd calculator works
Most bank fixed deposits compound quarterly. The maturity value formula is:
A = P × (1 + r/4)4t
Where P is the deposit amount, r is the annual interest rate (as a decimal), and t is the tenure in years.
Step-by-step guide
- Enter your deposit amount.
- Set the interest rate your bank is offering.
- Choose the FD tenure in years.
- Read the projected maturity value and interest earned.
FD vs recurring deposit
A fixed deposit locks in a lumpsum for a fixed tenure at a fixed rate — used here — while a recurring deposit involves regular monthly contributions, more comparable to our SIP Calculator in structure, though typically at bank FD-like interest rates.
Frequently asked questions
Quarterly compounding is the most common convention in India, but some banks or FD types compound monthly, annually, or pay simple interest — check your specific FD's terms, since this changes the exact maturity value.
Yes, in most jurisdictions FD interest is added to your taxable income and taxed at your applicable slab rate; banks may also deduct TDS above a threshold. This calculator shows gross interest before tax.
Most banks charge a penalty (typically a reduction in the interest rate) for premature withdrawal — the maturity value shown here assumes the FD runs its full tenure.