Calculate the maturity amount and interest on a bank fixed deposit.
Maturity amount
Amount deposited
Interest earned
Deposit 93%
Interest 7%
A fixed deposit (FD) locks your money with a bank or NBFC for a fixed period at a fixed interest rate. In a cumulative FD, interest is added to the deposit and earns interest itself. Most Indian banks compound it every quarter. This calculator shows what you will get back at maturity.
Example
₹1 lakh for 12 months at 7%, compounded quarterly, matures at about ₹1,07,186, slightly more than the ₹7,000 simple interest would give.
₹5 lakh for 3 years at 7.25% grows to about ₹6,20,274, earning ₹1.2 lakh in interest.
Before you book an FD
Compare rates by tenure. Banks pay different rates for different tenures, and the longest tenure is not always the best paid. Senior citizens usually get an extra 0.25% to 0.50%.
Interest is taxable. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when your interest from that bank in a year crosses the limit (₹50,000, or ₹1 lakh for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit.
Deposit insurance. DICGC insures deposits up to ₹5 lakh per depositor per bank, including interest. Spreading large sums across banks keeps more of your money covered.
Premature withdrawal usually carries a penalty of 0.5% to 1% on the interest rate.
How this is calculated
A = P × (1 + r ÷ n)n × t
P is the deposit, r the annual rate (as a decimal), n the number of times interest is compounded each year and t the tenure in years.
Assumptions
Interest is reinvested (cumulative FD). For monthly or quarterly payout FDs, interest is paid out instead of compounding.
Tax on interest and TDS are not deducted. Interest is taxable at your slab rate.
Banks may calculate short or odd tenures slightly differently.
Rules and formula last verified: 12 October 2026
Frequently asked questions
Which is better, quarterly payout or cumulative FD?
A cumulative FD earns more because interest compounds. Choose a payout FD only if you need regular income from the interest.
Does the RBI repo rate affect FD rates?
Yes, with a lag. When the RBI cuts the repo rate, banks usually lower FD rates for new deposits over the following weeks. Existing FDs keep their booked rate until maturity.
How is an FD different from a recurring deposit?
An FD takes one lump sum. A recurring deposit takes a fixed amount every month. Try the RD calculator for monthly savings.
Results are estimates for information only, based on the inputs and assumptions shown. They are not financial, tax or legal advice. Banks, fund houses and the tax department may calculate actual amounts differently.
