About this FD Calculator
A fixed deposit (FD) pays interest on money locked for a set period. This FD calculator estimates maturity value using compound interest so you can compare bank offers quickly.
FDs are popular for short-to-medium goals and emergency buffers beyond a savings account — but inflation and tax on interest can reduce real returns.
How to use this calculator
- Enter the amount you will deposit.
- Add the bank’s annual interest rate.
- Choose tenure and compounding frequency (many banks compound quarterly).
- Compare maturity value and interest across rates.
Formula used
A = P × (1 + r/m)^(m×t), where P is principal, r is annual rate as a decimal, m is compounding periods per year, and t is years. Interest = A − P.
Practical tips
- Ladder FDs (multiple maturities) for liquidity without idle cash.
- Check premature withdrawal penalties before locking long tenures.
- Compare post-tax FD returns with short-duration debt funds for non-emergency money.
Frequently asked questions
How is FD interest calculated?
Most bank FDs use compound interest. Maturity value depends on principal, rate, tenure and how often interest is compounded.
Is FD interest taxable?
In many jurisdictions interest is taxable as per your slab. This calculator shows gross interest before tax.
Quarterly vs annual compounding — does it matter?
More frequent compounding slightly increases maturity value at the same nominal rate. Always confirm the bank’s actual convention.
FD or SIP for long-term wealth?
FDs prioritise capital stability; equity SIPs aim for higher long-term growth with more volatility. Use each for the right goal.
