FD Calculator — Maturity, Interest & Effective Yield
Compute fixed-deposit maturity, total interest earned and effective annual yield with monthly, quarterly, half-yearly or yearly compounding. Includes year-by-year breakdown and a growth chart.
Year-by-year
| Year | Opening | Interest | Closing |
|---|---|---|---|
| 1 | ₹1,00,000 | +₹7,186 | ₹1,07,186 |
| 2 | ₹1,07,186 | +₹7,702 | ₹1,14,888 |
| 3 | ₹1,14,888 | +₹8,256 | ₹1,23,144 |
| 4 | ₹1,23,144 | +₹8,849 | ₹1,31,993 |
| 5 | ₹1,31,993 | +₹9,485 | ₹1,41,478 |
About this tool
A fixed deposit is a savings instrument where you commit a lump sum to a bank for a fixed tenure in exchange for a guaranteed interest rate. Indian banks almost universally compound FD interest quarterly: each quarter the accrued interest is added to the principal, and the next quarter's interest is calculated on the higher base. This compounding is why your effective yield is always a touch higher than the quoted nominal rate.
WRRK's FD calculator runs the standard compound-interest formula, shows your maturity value, total interest earned, and effective annual yield, and breaks it down year-by-year so you can see exactly how the balance grows. Useful for comparing FD offers across banks, evaluating tenures (1 year @ 7% rolled twice vs 2 years @ 7.25% locked), and planning lump-sum goals like a wedding, foreign trip, or down-payment fund.
Note: this is a pre-tax number. FD interest is fully taxable at your marginal slab rate, and banks deduct TDS at 10% once total interest from one bank crosses ₹40,000 in a financial year (₹50,000 for senior citizens). For long-term wealth, FDs underperform equity — but for guaranteed-return goals 1-5 years out, they remain unmatched.
How to use (5 steps)
- Enter principal. The amount you want to deposit. Minimum is usually ₹1,000 in most banks.
- Enter annual rate. The interest rate offered by the bank, expressed as % per annum. Add the senior-citizen bonus (0.25-0.50%) yourself if applicable.
- Set tenure. Years and additional months. FDs typically range from 7 days to 10 years; the sweet spot for rate is often 1-3 years.
- Pick compounding. Most Indian bank FDs compound quarterly. Some short-tenure FDs use monthly; corporate FDs sometimes use yearly.
- Read the result. Right panel shows maturity, interest earned, effective annual yield, and a year-by-year breakdown plus a growth chart.
Frequently asked questions
+−How is tax on FD interest calculated?
FD interest is fully taxable — added to your 'Income from Other Sources' and taxed at your marginal slab rate. There is no separate flat rate. If you fall in the 30% slab, ₹40,000 of FD interest costs ₹12,000 in tax (plus 4% cess). The maturity number this calculator shows is pre-tax.
+−When does TDS apply on FD interest?
Banks deduct TDS at 10% if your total FD interest from one bank crosses ₹40,000 in a financial year (₹50,000 for senior citizens). If you don't furnish PAN, TDS is 20%. Submitting Form 15G (under 60) or 15H (60+) — when total income is below the taxable limit — stops TDS deduction. TDS is not extra tax; it's an advance, adjusted in your ITR.
+−Can I break my FD before maturity?
Yes, but with a penalty. Most banks charge 0.5-1% lower interest on premature withdrawal — for example, if you booked a 5-year FD at 7% but break it after 2 years, you'll receive only the 2-year card rate (say 6.5%) minus a penalty (say 1%), giving you ~5.5%. Some special FDs (tax-saver 5-year FDs) can't be broken at all during the lock-in.
+−Are senior citizen rates higher?
Yes. Senior citizens (60+) typically get 0.25-0.50% extra over standard rates, and super seniors (80+) sometimes get a small further bump. The calculator doesn't apply this automatically — enter your bank's senior citizen rate directly.
+−Is FD better than a savings account?
Yes for any money you don't need for a few months. Savings accounts pay 2.5-4%; FDs pay 6.5-7.5%. The trade-off is liquidity — your money is locked in. A common setup is to keep 1-2 months of expenses in savings and the rest in FDs of staggered tenures (an FD ladder).
+−How are NRO and NRE FDs taxed?
NRE FDs (in foreign-earned income) are tax-free in India — both the principal and interest are exempt from Indian income tax. NRO FDs (in Indian-earned income for NRIs) are fully taxable, with TDS at 30% + cess. The maturity calculation is the same; only the tax treatment differs.
+−Why does my bank show a slightly different maturity?
Banks compound on calendar dates (e.g., last day of each quarter), use day-count conventions (365 vs 366), and round at every step. This calculator uses the textbook compound interest formula M = P(1 + r/n)^(nt), which is typically within ₹50-200 of a bank's quote on a 5-year FD.
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