Principal
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Principal vs interest
Share of your deposit versus interest earned at maturity.
FD growth over time
See how compounding grows your fixed deposit year by year.
| Year | Interest | Corpus |
|---|---|---|
| Run a calculation to see the yearly schedule. | ||
Also calculate
Switch tools without leaving your flow.
RD Calculator
Plan monthly recurring deposits with bank-style compounding.
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Plan regular mutual fund SIPs with charts and yearly breakdown.
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Project one-time mutual fund investments over your chosen tenure.
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Dividend & Dividend Yield Calculator
Find your dividend payout and the yield % on the current share price.
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What a fixed deposit will mature to
A fixed deposit locks a single amount with a bank for a set tenure at a rate agreed upfront, which is its whole appeal: you know the maturity value the day you book it. Enter the principal, the rate, the tenure, and how often the bank compounds, and this page returns the maturity value, the interest earned, and the effective annual yield.
Compounding frequency and the effective yield
Use whatever frequency your FD certificate states — quarterly is the norm for Indian bank deposits. It is worth understanding why it appears at all: at the same headline rate, more frequent compounding produces a slightly higher maturity value, because interest starts earning interest sooner. The effective yield shown here is that true annual rate, and it is the figure to compare across banks when their compounding terms differ.
What the figure leaves out
Interest is shown before tax. FD interest is taxable at your slab rate and banks deduct TDS above the threshold, so a headline 7% is meaningfully less in hand for anyone in a higher bracket — worth remembering when comparing an FD against a tax-efficient alternative. Breaking the deposit early also usually means a penalty or a reduced rate.
To save monthly into a bank product instead, use the RD calculator. For the market-linked alternative, see the SIP calculator or our SIP versus FD comparison.
FAQ
FD calculator FAQs
How is FD interest calculated?
Most bank deposits use compound interest: A = P × (1 + r/n)^(n×t), where P is the principal, r the annual rate, n the compounding periods per year, and t the tenure in years. Monthly, quarterly, half-yearly, and yearly compounding are all supported here.
What compounding frequency should I choose?
Whatever your FD certificate states — quarterly for most Indian bank deposits. At the same headline rate, more frequent compounding gives a slightly higher maturity value, which is why the effective yield is the fairer number for comparing offers.
What is the effective yield?
It is the annual rate your deposit truly earns once compounding is taken into account, so it sits marginally above the quoted rate. Two banks quoting the same rate on different compounding terms do not pay the same amount, and this is the figure that shows the difference.
Is an FD better than a SIP?
They answer different questions. An FD gives you a known amount on a known date, which is what near-term goals need. An equity SIP has historically earned more over long periods, with the real possibility of being down when you need the money. Horizon decides it more than preference does.
Does this include tax on the interest?
No — interest is shown gross. FD interest is taxable at your slab rate and banks deduct TDS above the threshold, so the post-tax return can be materially lower than the headline figure, particularly in higher brackets.
What happens if I break the deposit early?
Banks generally permit premature withdrawal but apply a penalty or pay a reduced rate for the period actually held. This calculator assumes you hold to maturity at the stated rate; check your bank’s terms if early access is a real possibility.