How is FD maturity amount calculated?

For cumulative FDs, interest is compounded monthly, quarterly, half-yearly, or yearly using the formula: A = P × (1 + r/n/100)^(n×t). For simple interest FDs, the formula is: A = P × (1 + r×t/100).

Does compounding frequency affect FD returns?

Yes, more frequent compounding (such as monthly or quarterly) results in higher effective yield and a larger maturity amount compared to yearly compounding or simple interest.

Is FD interest taxable?

Yes, FD interest is fully taxable based on your income tax slab rates. If the bank deducts TDS, you can claim it in your income tax returns.

FD Calculator

Q: What is TDS on FD interest?

Tax Deducted at Source (TDS) is deducted by banks when the interest income earned on FDs exceeds specific thresholds (currently ₹40,000 for regular individuals and ₹50,000 for senior citizens in India).

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Calculate the maturity amount and interest earned on your Fixed Deposits. Customize tenure, rate, compounding, and see the estimated TDS deduction.

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Fixed Deposit Parameters

Principal Deposit Amount

₹

Interest Rate (% p.a.)

Tenure (Years)

Yrs

Compounding / Interest Type

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How to Use the Fixed Deposit (FD) Calculator

Easily determine your returns on Fixed Deposits:

Adjust the Principal Deposit Amount slider to represent your initial investment.
Drag the Interest Rate slider to the rate offered by your banking institution.
Define the investment Tenure in years.
Choose your Compounding Frequency. Most Indian commercial banks compound interest quarterly.
Click Calculate Returns to evaluate pre-tax returns, estimated TDS, and post-tax values.

Fixed Deposit Calculation Formula

Depending on your choice, the calculator applies either Simple or Compound Interest mathematical formulas:

Simple Interest Formula

A = P × (1 + (r × t) / 100)

Compound Interest Formula

A = P × (1 + (r / n) / 100) ^ (n × t)

A = Maturity Amount

P = Principal investment amount

r = Interest rate % per annum

t = Tenure (time period in years)

n = Compounding frequency per year (12 for monthly, 4 for quarterly, 1 for yearly)

Frequently Asked Questions

What is a Fixed Deposit (FD)?

A Fixed Deposit is a financial instrument provided by banks or NBFCs which offers investors a locked, guaranteed rate of interest higher than a regular savings account until maturity.

How is compounding applied on FDs?

Compounding increases your return because interest earned is added back to your principal. Most Indian banks compound interest on a quarterly basis.

What is TDS on FD interest?

TDS stands for Tax Deducted at Source. In India, if your annual interest income from all FDs in a bank exceeds ₹40,000 (₹50,000 for senior citizens), the bank deducts tax (generally 10%) before paying out interest.

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Can I submit Form 15G/15H to avoid TDS?

Yes, if your total taxable income is below the taxable limit, you can submit Form 15G (for general public) or Form 15H (for senior citizens) to declare that bank should not deduct TDS.

Can I withdraw an FD before maturity?

Yes, premature withdrawal is usually allowed by banks, but it typically incurs a penalty (usually 0.5% to 1% reduction in the applicable interest rate).

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