Calculate Fixed Deposit maturity, interest earned and effective annual rate — with quarterly, monthly, half-yearly or annual compounding.
A ₹1,00,000 FD at 7% interest for 3 years with quarterly compounding matures to approximately ₹1,23,144, earning ₹23,144 in interest. The effective annual yield is about 7.19% thanks to quarterly compounding. Note: FD interest is fully taxable as per your income slab.
| Principal | 1 Year | 3 Years | 5 Years | Interest (5yr) |
|---|---|---|---|---|
| ₹50,000 | ₹53,594 | ₹61,572 | ₹70,779 | ₹20,779 |
| ₹1,00,000 | ₹1,07,186 | ₹1,23,144 | ₹1,41,478 | ₹41,478 |
| ₹5,00,000 | ₹5,35,930 | ₹6,15,722 | ₹7,07,389 | ₹2,07,389 |
| ₹10,00,000 | ₹10,71,859 | ₹12,31,439 | ₹14,14,778 | ₹4,14,778 |
| ₹25,00,000 | ₹26,79,648 | ₹30,78,598 | ₹35,36,946 | ₹10,36,946 |
Maturity before TDS/tax. FD interest is taxable per your income slab. Senior citizens often get +0.5% rate.
| Interest Rate | Bank Type | Maturity (Quarterly) | Interest Earned |
|---|---|---|---|
| 6.5% | Major bank (SBI/HDFC) | ₹1,38,042 | ₹38,042 |
| 7.0% | Major bank (higher tenure) | ₹1,41,478 | ₹41,478 |
| 7.5% | Senior citizen rate | ₹1,44,995 | ₹44,995 |
| 8.5% | Small finance bank | ₹1,52,203 | ₹52,203 |
| 9.0% | Small finance bank (senior) | ₹1,55,895 | ₹55,895 |
Small finance banks offer higher rates but check DICGC insurance covers deposits up to ₹5 lakh per bank.
| Compounding | Maturity Amount | Effective Annual Rate |
|---|---|---|
| Annually | ₹1,40,255 | 7.00% |
| Half-Yearly | ₹1,41,060 | 7.12% |
| Quarterly (bank standard) | ₹1,41,478 | 7.19% |
| Monthly | ₹1,41,763 | 7.23% |
A Fixed Deposit (FD) is a financial instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. Unlike a savings account, an FD locks your money for the chosen period (ranging from 7 days to 10 years) and pays a higher, guaranteed interest rate. FDs are one of the safest investments in India, with deposits up to ₹5 lakh per bank insured by DICGC.
FD interest is calculated using compound interest: A = P × (1 + r/n)^(n×t), where P is principal, r is the annual rate, n is the compounding frequency, and t is time in years. Most Indian banks compound quarterly, which produces a slightly higher effective yield than the stated rate. Compare FD returns with market-linked options using our SIP calculator or the tax-free PPF calculator.
A ₹1,00,000 FD at 7% for 3 years with quarterly compounding matures to ₹1,23,144 — earning ₹23,144 in interest at an effective yield of 7.19%. Remember this interest is taxable: if you're in the 30% slab, your post-tax return drops to around 4.9%, which is why tax-free options like PPF can be more attractive for long-term goals.
FD rates vary by bank and tenure. Major banks like SBI and HDFC offer 6.5% to 7.1%. Small finance banks offer 8% to 9%. Senior citizens typically get an extra 0.25% to 0.5%.
A ₹1,00,000 FD at 7% for 3 years with quarterly compounding matures to approximately ₹1,23,144, earning ₹23,144 in interest. The effective annual yield is about 7.19%.
Monthly compounding gives the highest effective return, then quarterly. For the same rate, quarterly beats annual. Most Indian banks compound quarterly, which is the standard.
Yes. FD interest is fully taxable per your income slab. Banks deduct TDS at 10% if interest exceeds ₹40,000/year (₹50,000 for seniors). You must declare it as income from other sources in your ITR.
A tax-saving FD has a 5-year lock-in and qualifies for deduction up to ₹1,50,000 under Section 80C. However, the interest earned is still taxable. It gives guaranteed returns with a tax benefit on the principal.
PPF offers tax-free returns (EEE) at 7.1% with a 15-year lock-in — better for long-term tax-free growth. FD offers flexible tenures and guaranteed returns but taxable interest. For long-term goals PPF usually wins; for liquidity, FD is better.
Yes, but premature withdrawal usually incurs a 0.5% to 1% penalty on the interest rate, and you earn the rate for the period actually held. Some banks offer no-penalty FDs or sweep-in accounts for flexibility.
FD rates vary widely. Small finance banks often offer 0.5-1.5% higher than major banks. Just ensure your deposit stays within the ₹5 lakh DICGC insurance limit per bank.
Quarterly compounding (bank standard) earns more than annual. If monthly payout isn't needed, choose cumulative (reinvested) FD for maximum compounding.
Split your money across FDs of different tenures (1, 2, 3, 5 years). This gives regular liquidity and lets you reinvest at higher rates if interest rates rise.
If your total income is below the taxable limit, submit Form 15G (or 15H for seniors) to prevent the bank deducting 10% TDS on FD interest.
A 5-year tax-saving FD qualifies for ₹1.5 lakh deduction under Section 80C. Good for conservative investors who want a tax break with guaranteed returns.
Senior citizens earn an additional 0.25-0.5% on FDs. If a parent is a senior citizen, booking the FD in their name (where appropriate) earns more interest.