Fixed deposits offer a guaranteed, pre-declared interest rate for a fixed tenure. Banks typically compound interest quarterly, though this varies. This calculator computes your maturity value for the compounding frequency you choose.
How to Use This Calculator
- Enter your FD principal amount.
- Enter the annual interest rate offered by your bank.
- Enter the tenure in years/months.
- Select the compounding frequency.
- View the maturity amount and total interest earned.
How the Calculation Works
Maturity Value = P × (1 + r/n)^(n×t)
Where P = principal, r = annual interest rate, n = number of compounding periods per year, and t = tenure in years.
Worked Example
A ₹2,00,000 FD at 7% annual interest, compounded quarterly, for 5 years: Maturity ≈ ₹2,00,000 × (1 + 0.07/4)^(4×5) ≈ ₹2,82,489, an estimated interest of about ₹82,489.
Who Should Use This
Savers comparing FD offers from different banks, or planning around a guaranteed, fixed-tenure return.
Important Considerations
FD interest rates vary by bank, tenure slab and depositor category (e.g. senior citizens often get a higher rate) — always use the actual rate quoted by your bank. Interest earned is taxable as per your income tax slab, and TDS may apply above certain thresholds.
Common Mistakes
Assuming all banks compound quarterly is incorrect — some FDs compound monthly, half-yearly, or annually, which changes the maturity value even at the same headline interest rate.
References
Compare with the Recurring Deposit Calculator for a monthly-instalment alternative.