Find out how much your fixed deposit (FD) will be worth on maturity. Enter the amount, interest rate and tenure, and pick how often interest is compounded.
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
Most Indian banks compound FD interest quarterly. For non-cumulative FDs that pay out interest monthly or quarterly, choose “simple interest” to see the total payout.
Example
₹1,00,000 for 3 years at 7% compounded quarterly matures to about ₹1,23,144 – ₹23,144 of interest. The effective annual yield is 7.19%, slightly more than the headline rate because of compounding.
How compounding frequency changes returns (₹1 lakh, 7%, 5 years)
| Compounding | Maturity |
|---|---|
| Yearly | ₹1,40,255 |
| Half-yearly | ₹1,41,060 |
| Quarterly | ₹1,41,478 |
| Monthly | ₹1,41,763 |
Tax on FD interest
- FD interest is added to your income and taxed at your slab rate.
- Banks deduct TDS once yearly interest crosses the threshold; submit Form 15G/15H if your total income is below the taxable limit.
- 5-year tax-saver FDs qualify for 80C in the old regime but cannot be broken early.
Tips
- Senior citizens usually earn about 0.25–0.5% extra.
- Small finance banks often pay more; deposits are insured up to ₹5 lakh per bank by DICGC.
- Split a large deposit into several FDs (a “ladder”) so you can break one without losing interest on all.
FD maturity for ₹1 lakh at different rates and tenures (quarterly compounding)
| Rate | 1 year | 3 years | 5 years |
|---|---|---|---|
| 6.0% | ₹1,06,136 | ₹1,19,562 | ₹1,34,686 |
| 6.5% | ₹1,06,660 | ₹1,21,341 | ₹1,38,042 |
| 7.0% | ₹1,07,186 | ₹1,23,144 | ₹1,41,478 |
| 7.5% | ₹1,07,714 | ₹1,24,972 | ₹1,44,995 |
| 8.0% | ₹1,08,243 | ₹1,26,824 | ₹1,48,595 |
Cumulative vs non-cumulative FDs
- Cumulative: interest is reinvested and paid at maturity. Best for growing savings.
- Non-cumulative: interest is paid monthly, quarterly or yearly. Useful for regular income, e.g. for retirees. Monthly payouts are slightly lower because of the discounting banks apply.
Post-tax returns matter
FD interest is taxed at your slab rate. A 7% FD gives roughly:
- 7.0% if your income is below the taxable limit
- about 6.3% after tax in a 10% slab (+cess)
- about 4.8% after tax in the 30% slab (+cess)
For high earners, tax-free options like PPF can beat FDs even at a lower headline rate.
How to get the best FD rate
- Compare rates across tenures – banks often pay the most on odd tenures such as 444 or 555 days.
- Check senior-citizen rates if a parent is eligible (and the deposit is genuinely theirs).
- Small finance banks often pay 0.5–1% more; deposits are insured up to ₹5 lakh per depositor per bank.
- Corporate FDs pay more but carry credit risk – stick to highly rated issuers.
Breaking an FD early
Most banks allow premature withdrawal with a penalty of 0.5–1% on the rate applicable for the period the deposit actually ran. If you might need the money, consider an FD with a sweep-in facility or a ladder of smaller FDs.
Real-life scenarios
- Parking a bonus: Kiran receives a ₹3 lakh bonus and puts it in a 2-year FD at 7.25%. It grows to about ₹3.46 lakh.
- Retiree income: A senior citizen deposits ₹10 lakh in a non-cumulative FD at 7.75% with quarterly payouts, receiving about ₹19,375 every quarter.
- Emergency fund ladder: Instead of one ₹6 lakh FD, Ritu opens three ₹2 lakh FDs maturing in 1, 2 and 3 years – so part of her money is always close to maturity.
- Tax-saver FD: A ₹1.5 lakh 5-year tax-saver FD at 7% grows to about ₹2.12 lakh and qualifies for 80C in the old regime.
Related calculators
- RD calculator – monthly deposits
- PPF calculator – tax-free compounding
- Loan prepayment calculator – compare FD returns with loan savings
FAQs
Does the calculator work for US CDs?
Yes. A certificate of deposit uses the same compound-interest math. Use the APY quoted by the bank with yearly compounding, or the APR with the bank’s stated compounding frequency.
What is the difference between interest rate and yield?
The yield (or APY) includes the effect of compounding. At 7% compounded quarterly, the effective annual yield is 7.19%.
FD or RD – which is better?
An FD earns more on the same total because the whole amount is invested from day one. Use an RD when you save monthly – try the RD calculator.