FD Calculator

Q: How much interest will I earn on a ₹1 lakh FD for 5 years?

At 7.4% per year with quarterly compounding , ₹1,00,000 grows to about ₹1,44,283 in 5 years. That is roughly ₹44,283 in interest. The math: A = 1,00,000 × (1 + 0.074/4) 4×5 = 1,00,000 × 1.4428. If the rate is lower, say 6.5%, you would earn closer to ₹38,000 instead.

Q: How much monthly income can I get from a ₹10 lakh FD?

Around ₹5,800 to ₹6,200 a month before tax, at rates of 7% to 7.4%. The math is simple: ₹10,00,000 × 7% = ₹70,000 a year, divided by 12 = ₹5,833 a month . This is a non-cumulative FD, so you get your full ₹10 lakh back at the end. Banks usually pay a slightly lower rate on monthly payout plans.

Q: How long does it take to double your money in a fixed deposit?

Use the Rule of 72 : divide 72 by your FD rate. At 6% → about 12 years At 7% → about 10.3 years At 7.4% → about 9.7 years At 8% → about 9 years This works only for cumulative FDs where interest compounds. If you take payouts, your money never doubles inside the FD.

Q: What is the minimum amount needed to open a fixed deposit?

Most banks let you start an FD with ₹1,000 to ₹10,000 . Big public banks often set it at ₹1,000. Private banks and NBFCs may ask for ₹5,000 or ₹10,000. There is no upper limit, but deposits above ₹2 crore are called bulk deposits and get a different rate card.

Q: Is FD interest compounded monthly or quarterly in India?

Almost all Indian banks compound FD interest quarterly (four times a year). Some NBFCs and company deposits compound monthly or yearly. More frequent compounding means slightly more money. On ₹1 lakh at 7.4% for 5 years: Yearly: about ₹42,900 Quarterly: about ₹44,283 Monthly: about ₹44,600

Q: What happens to an FD after it matures if I do nothing?

It depends on what you chose when booking: Auto-renewal on: The bank renews the FD for the same tenure at the current rate. Auto-renewal off: The money moves to your savings account and earns only the savings rate, around 2.5% to 3%. Leaving matured money idle costs you. Check your maturity date and act on it.

Q: Can I take a loan against my fixed deposit?

Yes. Most banks lend you up to 90% to 95% of your FD value as a loan or overdraft. The interest you pay is usually 1% to 2% above your FD rate . Your FD keeps earning interest the whole time. This is often cheaper than breaking the FD early, since breaking it costs you a rate penalty on the full amount.

Q: What is a tax-saving FD and how is it different?

A tax-saving FD has a fixed 5-year lock-in . You can claim up to ₹1.5 lakh as a deduction under Section 80C in the old tax regime. The rules are stricter than a normal FD: No premature withdrawal No loan against it Maximum ₹1.5 lakh per year The interest you earn is still fully taxable.

Q: Is FD interest taxed every year or only when the FD matures?

Interest is taxed every year as it is earned , not only at maturity. This is true even for cumulative FDs where you get no cash until the end. The bank reports the interest each year and may cut TDS. You must show that interest in your return for that year. Many people miss this and face a tax demand later.

Q: Can a minor open a fixed deposit?

Yes. A minor can hold an FD, but a parent or guardian must operate it until the child turns 18. The interest rate is usually the same as a regular adult FD. Senior citizen bonus rates do not apply. The interest is normally clubbed with the parent's income for tax, with a small exemption of ₹1,500 per child.

FD Calculator

Introduction

A Fixed Deposit (FD) is one of the safest ways to grow your money. You put in a set amount for a set time, and the bank pays you interest at a fixed rate. This FD Calculator shows you exactly how much your deposit will be worth when it matures, before you invest a single rupee.

Just enter your principal amount, pick your tenure, and choose your customer type. The calculator picks the right interest rate for your tenure slab on its own. Senior citizens get the higher rate automatically. Want to test a different rate? Tap Override and set your own.

You can also choose how you want your interest paid. Pick On Maturity to let your interest compound and grow, or choose monthly, quarterly, half-yearly, or yearly payouts for steady income. The calculator handles both, and the comparison table shows you the difference side by side.

Your results include:

Maturity value: total money you get back
Interest earned: your profit in rupees
Effective annual yield: your real return after compounding
Maturity date: the month your FD ends
Payout per period: for non-cumulative FDs

Charts show your principal and interest split, plus how your money grows month by month. A full step-by-step solution walks you through the math, so you can see exactly how each number was found. Everything updates the moment you change an input.

How to use our FD Calculator

Enter your deposit amount, tenure, and a few basic details. The calculator shows your interest earned, total maturity value, maturity date, payout per period, and a full step-by-step breakdown.

Principal Amount: Type the money you want to deposit, or drag the slider. It must be between ₹15,000 and ₹3,00,00,000.

Annual Interest Rate: The rate fills in on its own based on your tenure and customer type. Click "Override" if you want to type your own rate from 1% to 15%.

Tenure: Enter how long you want to keep the money in the FD. Pick Years or Months from the drop-down. The range is 1 to 25 years (12 to 300 months).

Customer Type: Choose Regular, Senior Citizen, Minor, HUF, or Sole Proprietor. Senior citizens get a higher rate.

Payout Frequency: Pick "On Maturity" to let your interest grow, or choose Monthly, Quarterly, Half-Yearly, or Yearly to get interest paid out to you.

Compounding Frequency: Choose how often interest is added back to your deposit (Monthly, Quarterly, Half-Yearly, Annually, or Simple Interest). This works only for "On Maturity" deposits.

Click Calculate to see your results, or Reset to Defaults to start over.

What Is a Fixed Deposit (FD)?

A fixed deposit is a savings plan where you give a bank a lump sum of money for a set time. The bank pays you interest at a fixed rate. When the time is over, you get your money back plus the interest. The rate does not change during the term, even if market rates fall. That is why FDs are one of the safest ways to grow savings.

How FD Interest Is Worked Out

There are two ways banks add interest to your deposit:

Simple interest: Interest is paid only on the money you put in. Formula: Interest = P × r × t ÷ 100.
Compound interest: Interest is added back to your deposit, so you earn interest on your interest. Formula: A = P (1 + r ÷ n)^n×t.

Here P is your deposit, r is the yearly rate, t is the number of years, and n is how many times a year interest is added. Most Indian banks compound FD interest every quarter. More compounding means a higher final amount.

Cumulative vs Non-Cumulative FDs

A cumulative FD keeps all the interest inside the deposit until the end. You get one big payment at maturity. This grows your money the fastest because of compounding.

A non-cumulative FD pays interest out to you every month, quarter, half-year, or year. Your deposit stays the same size, and you get your principal back at the end. This suits people who need steady income, like retirees. Banks usually pay a slightly lower rate on these plans because the interest is not left to compound.

What Changes Your FD Rate

Tenure: Rates move in slabs. Mid-length terms of about 3 to 5 years often pay the most.
Age: Senior citizens (60 and above) usually get about 0.25% to 0.50% extra.
Bank type: Small finance banks and NBFCs often pay more than large public banks.
Amount: Very large deposits (bulk deposits) can have their own rate card.

Tax on FD Interest

FD interest counts as income and is taxed at your income tax slab rate. Banks cut TDS when interest passes ₹50,000 in a year (₹1,00,000 for senior citizens). If your total income is below the taxable limit, you can give Form 15G or 15H to stop the TDS.

Things to Know Before You Book an FD

Breaking early costs you: Most banks cut 0.5% to 1% from the rate if you withdraw before the term ends.
Deposits are insured: DICGC covers up to ₹5 lakh per person per bank, including principal and interest.
Laddering helps: Splitting money across several FDs with different end dates gives you cash at regular points without breaking one big deposit.
Watch inflation: If prices rise faster than your FD rate, your real return is small. FDs protect your money, but they are not a fast growth tool.

Formulas used

Compound Interest Maturity Value (Cumulative FD)

A = P\left(1 + \frac{r}{n \times 100}\right)^{n t}

Interest Earned (Cumulative FD)

I = A - P

Simple Interest

I = \frac{P \times r \times t}{100}

Tenure in Years from Months

t = \frac{\text{months}}{12}

Effective Rate for Non-Cumulative (Payout) Deposits

r_{\text{eff}} = r - 0.15\%

Interest Payout Per Period

\text{Payout} = \frac{I}{N}, \quad N = \text{round}\left(f \times t\right)

Effective Annual Yield

EAY = \left[\left(1 + \frac{r}{n \times 100}\right)^{n} - 1\right] \times 100

Principal / Interest Share of Total Value

\text{Principal \%} = \frac{P}{P + I} \times 100, \quad \text{Interest \%} = 100 - \text{Principal \%}

Frequently asked questions

How much interest will I earn on a ₹1 lakh FD for 5 years?

At 7.4% per year with quarterly compounding, ₹1,00,000 grows to about ₹1,44,283 in 5 years. That is roughly ₹44,283 in interest.

The math: A = 1,00,000 × (1 + 0.074/4)^4×5 = 1,00,000 × 1.4428.

If the rate is lower, say 6.5%, you would earn closer to ₹38,000 instead.

How much monthly income can I get from a ₹10 lakh FD?

Around ₹5,800 to ₹6,200 a month before tax, at rates of 7% to 7.4%.

The math is simple: ₹10,00,000 × 7% = ₹70,000 a year, divided by 12 = ₹5,833 a month.

This is a non-cumulative FD, so you get your full ₹10 lakh back at the end. Banks usually pay a slightly lower rate on monthly payout plans.

How long does it take to double your money in a fixed deposit?

Use the Rule of 72: divide 72 by your FD rate.

At 6% → about 12 years
At 7% → about 10.3 years
At 7.4% → about 9.7 years
At 8% → about 9 years

This works only for cumulative FDs where interest compounds. If you take payouts, your money never doubles inside the FD.

What is the minimum amount needed to open a fixed deposit?

Most banks let you start an FD with ₹1,000 to ₹10,000. Big public banks often set it at ₹1,000. Private banks and NBFCs may ask for ₹5,000 or ₹10,000.

There is no upper limit, but deposits above ₹2 crore are called bulk deposits and get a different rate card.

Is FD interest compounded monthly or quarterly in India?

Almost all Indian banks compound FD interest quarterly (four times a year). Some NBFCs and company deposits compound monthly or yearly.

More frequent compounding means slightly more money. On ₹1 lakh at 7.4% for 5 years:

Yearly: about ₹42,900
Quarterly: about ₹44,283
Monthly: about ₹44,600

What happens to an FD after it matures if I do nothing?

It depends on what you chose when booking:

Auto-renewal on: The bank renews the FD for the same tenure at the current rate.
Auto-renewal off: The money moves to your savings account and earns only the savings rate, around 2.5% to 3%.

Leaving matured money idle costs you. Check your maturity date and act on it.

Can I take a loan against my fixed deposit?

Yes. Most banks lend you up to 90% to 95% of your FD value as a loan or overdraft.

The interest you pay is usually 1% to 2% above your FD rate. Your FD keeps earning interest the whole time.

This is often cheaper than breaking the FD early, since breaking it costs you a rate penalty on the full amount.

What is a tax-saving FD and how is it different?

A tax-saving FD has a fixed 5-year lock-in. You can claim up to ₹1.5 lakh as a deduction under Section 80C in the old tax regime.

The rules are stricter than a normal FD:

No premature withdrawal
No loan against it
Maximum ₹1.5 lakh per year

The interest you earn is still fully taxable.

Is FD interest taxed every year or only when the FD matures?

Interest is taxed every year as it is earned, not only at maturity. This is true even for cumulative FDs where you get no cash until the end.

The bank reports the interest each year and may cut TDS. You must show that interest in your return for that year. Many people miss this and face a tax demand later.

Can a minor open a fixed deposit?

Yes. A minor can hold an FD, but a parent or guardian must operate it until the child turns 18.

The interest rate is usually the same as a regular adult FD. Senior citizen bonus rates do not apply.

The interest is normally clubbed with the parent's income for tax, with a small exemption of ₹1,500 per child.

What is the difference between the FD rate and the effective annual yield?

The FD rate is the number the bank advertises. The effective annual yield is what you really earn once compounding is counted.

Example: 7.4% compounded quarterly gives an effective yield of 7.61% a year.

Formula: EAY = (1 + r/n)ⁿ − 1. The yield is always higher than the stated rate when interest compounds, and equal to it when interest is paid out.

Is an FD better than a recurring deposit?

They suit different people:

FD: You have a lump sum now. All your money earns interest from day one.
RD: You save a fixed amount each month. Each instalment earns interest only from the month you pay it.

For the same total money and rate, an FD earns more because the cash sits longer. Pick an RD only if you do not have the lump sum yet.

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