Fixed Deposit (FD) Calculator
See exactly what your fixed deposit will be worth at maturity. Enter the deposit amount, the bank's interest rate and the tenure — most banks compound FD interest quarterly, which is the default here.
How to use this calculator
- Enter the lump sum you plan to deposit.
- Enter the interest rate your bank offers for that tenure.
- Enter the tenure in years — decimals work for months.
- Keep compounding on Quarterly unless your bank states otherwise, then press Calculate.
Formula used
Where P is the deposit, r the annual rate as a decimal, n the compounding periods per year (4 for quarterly), and t the tenure in years. The effective annual yield shows the true rate after compounding.
Example calculation
Deposit 200,000 at 7.1% for 5 years with quarterly compounding:
A = 200,000 × (1 + 0.071/4)20 = 284,349. Interest earned = 84,349, and the effective annual yield is about 7.29% — slightly higher than the quoted 7.1% because of quarterly compounding.
What is a fixed deposit?
A fixed deposit (FD, also called a term deposit or CD in some countries) is a bank deposit locked for a fixed tenure at a guaranteed interest rate. Unlike a savings account, the rate cannot change during the term — which makes FDs one of the most predictable investments available.
Banks typically compound FD interest quarterly, so the effective yield is a little higher than the quoted rate. Breaking an FD early usually incurs a penalty of 0.5–1% on the rate, so match the tenure to when you'll genuinely need the money.
Why use this calculator?
- Know the exact maturity value before you book — the rate is fixed, so this calculator's answer is what you'll get.
- Compare tenures and banks: a 0.5% rate difference on a large deposit compounds into real money.
- See the effective annual yield, which is the honest way to compare FDs against other investments.
Frequently asked questions
How is FD interest calculated?
Most banks use quarterly compounding: A = P(1 + r/4)^(4t). A 7.1% quoted rate therefore yields about 7.29% effectively per year. Some banks pay simple interest on FDs shorter than 6 months.
Is FD interest taxable?
In most countries, yes — FD interest is taxed as ordinary income at your slab rate, and banks may deduct tax at source (TDS) above a threshold. Your post-tax return can be meaningfully lower than the quoted rate, especially in higher tax brackets.
What happens if I break my FD early?
Banks typically pay interest for the actual period at the rate applicable to that shorter period, minus a penalty of around 0.5–1%. If you might need the money, consider splitting into multiple smaller FDs so you only break what you need.
Which is better — FD or SIP in mutual funds?
They serve different purposes. FDs give guaranteed, fixed returns and suit short-term goals and emergency funds. Equity SIPs historically return more over long periods but fluctuate and carry risk. Many investors hold both.