💰 Finance & Math

FD Calculator

Q: What is a Fixed Deposit (FD)?

A Fixed Deposit is a savings instrument where you deposit a lump sum for a fixed tenure at a predetermined interest rate. At maturity you receive the principal plus accumulated interest. Deposits up to ₹5 lakh are insured by DICGC.

Q: What is the formula for FD maturity amount?

For compound interest: M = P × (1 + r/n)^(n×t), where P = principal, r = annual interest rate (decimal), n = compounding frequency per year, t = tenure in years.

Q: Is FD interest taxable in India?

Yes. FD interest is taxed at your income tax slab rate. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your income is below the taxable limit.

Q: What is the difference between cumulative and non-cumulative FD?

In a cumulative FD, interest compounds and is paid at maturity. In a non-cumulative FD, interest is paid at regular intervals (monthly or quarterly) while the principal is returned at maturity.

Calculate the maturity amount and interest earned on your Fixed Deposit with any compounding frequency.

Principal Amount (₹)

₹1 L

Annual Interest Rate (%)

Tenure (years)

5 yr

Compounding Frequency

—

Maturity Amount

—

Total Interest

—

Effective Rate

Principal Interest Earned

— —

Compounding Frequency Comparison

Frequency	Maturity	Interest	Eff. Rate

Frequently Asked Questions

What is a Fixed Deposit (FD)?

A Fixed Deposit is a financial instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. At maturity you receive the principal plus the accumulated interest. FDs are considered one of the safest investments in India as deposits up to ₹5 lakh are insured by DICGC.

What is the formula for FD maturity amount?

For compound interest: M = P × (1 + r/n)^(n×t), where P = principal, r = annual interest rate (as a decimal), n = compounding frequency per year (4 for quarterly), t = tenure in years. For simple interest: M = P × (1 + r × t).

Which compounding frequency gives the best returns?

More frequent compounding always yields higher returns. Monthly compounding gives slightly more than quarterly, which gives more than half-yearly, which gives more than annual. The difference is small for short tenures but compounds significantly over 5–10 years. The comparison table on this calculator shows the exact difference.

Is FD interest taxable in India?

Yes. FD interest is added to your income and taxed at your applicable income tax slab rate. Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

What is the difference between cumulative and non-cumulative FD?

In a cumulative FD, interest is compounded and paid at maturity along with the principal — this calculator models this type. In a non-cumulative FD, interest is paid out at regular intervals (monthly, quarterly, etc.) while the principal is returned at maturity. Non-cumulative FDs are useful for generating regular income.

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