About the FD Calculator
A fixed deposit (FD) pays a fixed rate of interest over a set tenure, making returns predictable. This calculator uses quarterly compounding (the common convention) to estimate your maturity amount and the interest earned.
How FD interest is calculated
Most FDs compound interest quarterly: each quarter the interest is added to the principal and the next quarter earns on the larger balance. A higher rate, longer tenure and more frequent compounding all increase the maturity value.
FDs in a portfolio
FDs bring stability and capital safety and suit short-to-medium-term goals and emergency funds. For potentially higher yields with some credit risk, explore bonds and fixed income alongside deposits.
FD Calculator — frequently asked questions
How is FD maturity calculated?
Using compound interest — here, quarterly compounding: maturity = principal × (1 + rate/4)^(4 × years). Actual bank conventions and payout options can vary slightly.
Is FD interest taxable?
Yes — FD interest is taxable as per your income slab, and TDS may apply above a threshold. The calculator shows interest before tax.
Are FDs safe?
Bank FDs are low-risk and bank deposits are insured up to ₹5 lakh per bank by DICGC. Corporate FDs carry more risk, varying by the issuer’s rating.