FD Calculator

About Fixed Deposits

A Fixed Deposit is the most widely held savings instrument in India — you deposit a lump sum with a bank for a fixed period at a fixed rate, and the bank guarantees both your principal and the promised interest, regardless of what markets do in between. For many Indian households, it's the default "safe" place to park money that isn't needed immediately, from an emergency cushion to a multi-year goal.

How it works

You choose an amount, a tenure (anywhere from 7 days to 10 years), and whether you want a cumulative FD (interest reinvests and compounds, paid out as one lump sum at maturity) or a non-cumulative FD (interest is paid out to you monthly, quarterly, or annually, while the principal stays fixed). Indian banks compound cumulative FDs quarterly by default — a detail that surprises people who assume "annual rate" means annual compounding.

How to use this calculator

• Simple mode gets you a quick estimate with sensible defaults — amount, rate, and tenure in years.
• Advanced mode unlocks deposits above ₹10L, a Years/Months/Days tenure picker for odd durations like "888 days" (a real tenure some banks offer specifically for a rate bump), and a choice of compounding frequency.
• Toggle between the two any time — your inputs carry over.

Strategies worth knowing

• FD laddering — split one large deposit into several FDs maturing at different times (e.g. 1, 2, and 3 years), so you always have one coming due for liquidity while the rest keep earning longer-tenure rates.
• Tax-saver FDs — a 5-year FD with a lock-in qualifies for a Section 80C deduction, but the interest is still fully taxable and you can't break it early.
• Senior citizen premium — most banks add 0.25–0.75% for depositors aged 60+; always ask, since it's rarely applied automatically without checking the box.
• Odd-day tenures — banks periodically run special rates on non-round tenures (444 days, 888 days) that can beat their standard 1-year or 3-year rate; check current specials before locking in a round number out of habit.

Important caveats

• FD interest is fully taxable at your income slab rate, and banks deduct TDS once interest crosses the annual threshold — the maturity value here is pre-tax.
• Breaking an FD before maturity usually costs you a penalty (typically 0.5–1% off the applicable rate) — this calculator assumes the FD runs its full chosen tenure.
• DICGC insures deposits (including FDs) only up to the current per-depositor, per-bank limit — holding more than that at one bank means the excess isn't covered.

Why quarterly compounding matters

The difference between quarterly and annual compounding looks small on paper — a fraction of a percent in effective yield — but it compounds (literally) over a long tenure. On a 5-year, ₹10L FD at 7%, quarterly compounding earns roughly ₹4,000–₹5,000 more than annual compounding would, purely from interest being credited and starting to earn its own interest four times a year instead of once.

Benefits of an FD

• Principal and promised interest are both guaranteed by the bank — no market risk.
• DICGC insurance up to the current limit, same as a savings account.
• Predictable, calculable returns — you know the exact maturity value the day you book it.
• Widely accepted as loan collateral, often at a lower rate than an unsecured loan.