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Fixed Deposit Calculator

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Calculate guaranteed returns on your bank fixed deposit with standard quarterly compounding.

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Principal investment sum

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%

Bank interest rate per annum

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Yrs

Fixed deposit duration in years

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Most Indian banks compound FD interest quarterly

Results

Guaranteed Maturity Value
₹1.42 Lakh
(₹1,42,175)
Deposit Principal
₹1 Lakh(₹1,00,000)
Interest Earned
+₹42,175(+₹42,175)
Return on Investment42.2%

TDS under Section 194A applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).

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Quick Answer / Summary

A fixed deposit of ₹1.00 Lakh at an interest rate of 7.10% p.a. with quarterly compounding over a 5-year tenure yields a guaranteed maturity amount of ₹1.42 Lakh (₹1,42,010). The total compound interest earned is ₹42,010.

How Fixed Deposit interest is calculated

A Fixed Deposit (FD) is a secure investment instrument provided by banks and NBFCs offering guaranteed returns with quarterly compounding. Unlike a simple interest deposit where interest remains uninvested, quarterly compounding reinvests your interest every 3 months.

A = P × (1 + r / n)ⁿᵗ
A = Final maturity amount
P = Principal deposit sum
r = Annual nominal interest rate = Rate / 100
n = Compounding frequency per year (4 for quarterly)
t = Tenure in years

Worked mathematical example

Calculating maturity for a ₹1,00,000 deposit at 7.1% p.a. compounded quarterly for 5 years:

Step 1:Quarterly rate: r / 4 = 0.071 / 4 = 0.01775
Step 2:Total compounding quarters: n × t = 4 × 5 = 20 quarters
Step 3:Compound growth factor: (1 + 0.01775)²⁰ ≈ 1.42010
Step 4:Final maturity: 1,00,000 × 1.42010 = ₹1,42,010
Principal: ₹1,00,000Interest Earned: ₹42,010

Frequently asked questions

How is Fixed Deposit (FD) interest compounded in Indian banks?
Most commercial banks in India (including SBI, HDFC Bank, ICICI Bank, and Punjab National Bank) compound FD interest on a quarterly basis (every 3 months). The accrued quarterly interest is added to the principal to generate higher compound yields.
Do senior citizens get higher FD interest rates?
Yes. Indian banks provide an additional interest rate premium of 0.50% to 0.75% per annum for depositors aged 60 and above. Certain banks also offer super-senior citizen schemes (age 80+) with up to 0.80% extra return.
Is FD interest taxable, and what are the TDS limits?
Yes, interest earned on fixed deposits is fully taxable under Income from Other Sources at your applicable income tax slab rate. Under Section 194A, banks deduct 10% TDS if cumulative FD interest across branches exceeds ₹40,000 per financial year (₹50,000 for senior citizens).
What is a 5-Year Tax-Saving Fixed Deposit?
A 5-year tax-saving FD allows individuals to claim a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act (Old Tax Regime). These deposits have a mandatory 5-year lock-in period with no premature withdrawal or loan facility.
What formula is used to compute FD maturity?
The standard compound interest formula is A = P × (1 + r / n)^(n × t), where P is principal, r is annual nominal rate in decimal, n is compounding frequency (4 for quarterly), and t is duration in years.
Can I withdraw my fixed deposit before maturity?
Yes, regular fixed deposits allow premature withdrawal, though banks usually penalize premature closure with a 0.5% to 1.0% interest rate penalty on the applicable rate for the contracted tenure.

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Last updated: September 2026·Verified against standard banking compounding conventions
View formula methodology

Maturity Value

₹1,42,175