Calculate the exact maturity amount and interest on your fixed deposit — quarterly compounding, just like your bank.
How this FD calculator works
Indian banks compound fixed deposits quarterly. The maturity value is:
Maturity = P × (1 + r/4)4 × years
where P is your deposit and r the annual interest rate. Because compounding happens four times a year, the effective yield is slightly higher than the card rate — a 7% FD actually yields about 7.19% a year.
Worked example
₹1,00,000 at 7% for 5 years → 1,00,000 × (1 + 0.0175)20 = ₹1,41,478. Total interest ≈ ₹41,478. The same deposit at a senior-citizen rate of 7.5% matures at ₹1,44,995.
FD rates snapshot (verify with your bank)
| Bank / scheme | Regular (5yr) | Senior citizen |
|---|
| Post Office Time Deposit | 7.5%* | 7.5% |
| Large private banks (typical) | 6.5%–7.25% | 7.0%–7.75% |
| Small finance banks (typical) | 7.5%–8.25% | 8.0%–8.75% |
*As of Q1 FY 2026-27 small-savings notification. Bank rates change frequently — always confirm the current card rate before booking.
Frequently Asked Questions
How is FD interest calculated?
Banks compound fixed deposit interest quarterly. Maturity = P × (1 + r/4)4×years, where P is your deposit and r is the annual rate. This calculator uses the same formula, so results match bank FD tables within a rupee or two.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS when interest crosses ₹50,000 a year (₹1,00,000 for senior citizens, FY 2025-26 limits). You can submit Form 15G/15H if your total income is below the taxable limit.
What is the FD interest rate for senior citizens?
Most banks pay 0.25%–0.50% extra to senior citizens. For example, if the card rate is 7.0%, the senior citizen rate is typically 7.5%. Use the senior-citizen toggle above to compare.
Which is better — FD or RD?
An FD suits a lumpsum you already have; an RD (recurring deposit) suits monthly saving. For the same rate and period a lumpsum FD earns more total interest because the full amount compounds from day one. Try our
RD calculator to compare.
Can I break an FD before maturity?
Yes, but banks charge a premature-withdrawal penalty, usually 0.5%–1% lower interest than the rate applicable for the period the deposit actually ran.
Is a 5-year tax-saver FD eligible for 80C?
Yes — a 5-year tax-saver FD qualifies for deduction up to ₹1.5 lakh under Section 80C (old tax regime only). It has a 5-year lock-in and interest remains taxable.
Estimates are for information and education only — not financial, tax or investment advice. Verify current rates and rules with official sources.