How is FD maturity calculated?
For an FD where interest is added, Maturity = P × (1 + r ÷ n)n × t. P is the deposit, r the yearly rate, n how many times a year interest is added, and t the tenure in years. Most banks add interest every quarter, so n = 4.
Tenure is rarely a whole number of years, so this calculator takes years, months and days. Days are counted on a 365-day year. Banks compound for each full period and pay simple interest on the days left over, and so does this calculator. For example, 1 year 3 months 10 days at 7% compounds for five full quarters and then adds simple interest for the last 10 days.
Interest added or interest paid out?
In a cumulative FD the interest stays in the deposit and earns interest too, so you get more at the end. In a payout FD the bank pays the interest to you every month, quarter, 6 months or year. It is not compounded, which makes the total lower, but it gives you regular income. A monthly payout is also paid at a slightly lower rate by many banks than the cumulative rate, so enter the rate your bank shows for the option you choose.
Recurring deposit (RD)
An RD works like a small FD every month. Each instalment earns interest from the day it goes in until maturity, compounded every quarter. Early instalments therefore grow the most. Banks usually offer RDs from 6 months to 10 years.
What about tax?
FD and RD interest is added to your income and taxed at your slab rate, plus 4% cess. The tax is due every year as the interest builds up, even in a cumulative FD that pays nothing until the end. The calculator shows an estimate using the rate you pick under Tax and inflation. Your real tax depends on your whole income and on whether you use the old or new regime.
Frequently asked questions
What is the shortest and longest FD tenure?
Most banks accept FDs from 7 days up to 10 years. Interest rates differ by tenure, so a 1-year rate does not apply to a 5-year deposit.
What is TDS on FD interest?
If your interest from one bank in a financial year is above ₹50,000 (₹1,00,000 for senior citizens, from 1 April 2025), the bank deducts 10% TDS. It is 20% if you have not given your PAN. TDS is only an advance payment. You can submit Form 15G or 15H if your total income is below the taxable limit. Check the current limits with your bank.
Does a senior-citizen rate apply?
Enter the rate your bank offers you. Senior citizens typically get an extra 0.25 to 0.50%. Tick the senior citizen box under Tax and inflation to use the higher TDS limit.
Is a 5-year tax-saver FD useful?
A 5-year tax-saver FD qualifies for a deduction of up to ₹1.5 lakh under Section 80C, but only in the old tax regime. It cannot be broken early. The interest is still taxable.
What if I break an FD early?
Banks usually charge a penalty of about 0.5 to 1% on the rate and pay interest only for the time the money stayed. The rate for the shorter period applies, not your original rate.
How safe is my FD?
Deposit insurance (DICGC) covers up to ₹5 lakh per depositor per bank, including principal and interest. Spread larger amounts across banks if you want every rupee covered.
Why does the real return look so low?
Interest is taxed and prices rise. At 7%, a 30% taxpayer keeps about 4.9% after tax. If prices rise 6%, the value of that money barely grows. The real-return figure shows this clearly.