How is FD maturity calculated in India?

Most Indian banks compound fixed deposit interest quarterly. The maturity amount is calculated as Principal × (1 + r/4)^(4×years), where r is the annual interest rate as a decimal. This calculator uses quarterly compounding by default.

Do senior citizens get higher FD rates?

Yes. Most Indian banks offer senior citizens (aged 60 and above) an additional 0.25% to 0.75% over the standard FD rate. Enter the senior-citizen rate directly to see the higher maturity.

Is FD interest taxable in India?

Yes. FD interest is fully taxable as income at your slab rate. Banks deduct 10% TDS if annual interest exceeds Rs 40,000 (Rs 50,000 for senior citizens). You must declare FD interest in your income tax return.

FD Calculator

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Calculate the maturity amount and total interest on any fixed deposit. Uses quarterly compounding — the method Indian banks actually use — so your result matches what the bank will pay.

Deposit amount (₹)

Interest rate (% per year)

Tenure (years)

How to use this FD calculator

Enter your deposit amount — the lump sum you plan to invest, in rupees.
Enter the annual interest rate offered by your bank. Use the senior-citizen rate if applicable.
Set the tenure in years (you can use decimals like 1.5 for 18 months).
Click "Calculate Maturity" to see the maturity amount, total interest earned, and your effective return.

How FD maturity is calculated

A fixed deposit earns compound interest. Most Indian banks compound quarterly, meaning interest is added to the principal four times a year, and each subsequent quarter earns interest on the higher balance. The formula is:

Maturity = P × (1 + r/4)^{4 × n}

where P is the principal, r is the annual interest rate (as a decimal), and n is the tenure in years. The "4" reflects quarterly compounding. This calculator uses exactly this formula, so the maturity figure matches what your bank's FD receipt will show, give or take a rupee from rounding.

Worked example

Suppose you deposit ₹1,00,000 in an SBI fixed deposit at 7% per year for 5 years. With quarterly compounding: Maturity = 1,00,000 × (1 + 0.07/4)^(4×5) = 1,00,000 × (1.0175)^20 = ₹1,41,478. So you earn ₹41,478 in interest over 5 years. The same deposit at a senior-citizen rate of 7.5% would mature at ₹1,44,995 — about ₹3,500 more, purely from the 0.5% rate bump.

FD interest rates in India (2026 context)

As of early 2026, most large Indian banks (SBI, HDFC, ICICI, Axis) offer 6.5% to 7.25% on FDs of 1 to 5 years for the general public, and 7% to 7.75% for senior citizens. Small finance banks (Jana, Unity, AU, Equitas) often offer 8% to 8.5% to attract deposits, though they carry slightly more risk (deposits up to ₹5 lakh per bank are insured by DICGC regardless). Tax-saving 5-year FDs qualify for Section 80C deduction up to ₹1.5 lakh but lock your money for the full term.

FD taxation

FD interest is fully taxable as "income from other sources" at your income-tax slab rate. Banks deduct 10% TDS if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). If your total income is below the taxable threshold, submit Form 15G (or 15H for seniors) to avoid TDS. Remember: TDS is not the final tax — you still declare the full interest in your return and pay any balance at your slab rate.

FD vs other options

FDs offer guaranteed returns and capital safety, making them ideal for emergency funds, short-term goals, and risk-averse savers. However, post-tax FD returns (around 4.7% to 5.2% for someone in the 30% bracket) often barely beat inflation. For long-term wealth building, equity SIPs historically outperform FDs significantly — see our SIP vs FD comparison for the detailed maths. A balanced approach: keep 6 months of expenses in FDs, invest the rest in diversified equity for long horizons.

Frequently asked questions

Does this calculator use simple or compound interest?

Compound interest with quarterly compounding, which is what nearly all Indian banks use for FDs. Some NBFCs use monthly or annual compounding — check your provider's terms.

Can I calculate a tax-saving FD?

Yes. Enter a 5-year tenure and your bank's tax-saving FD rate. Remember tax-saving FDs lock your money for the full 5 years with no premature withdrawal.

What if I withdraw before maturity?

Premature withdrawal usually incurs a 0.5% to 1% penalty on the applicable rate. This calculator shows the full-term maturity; actual payout on early closure will be lower.

Is my FD safe?

Bank FDs up to ₹5 lakh per depositor per bank are insured by DICGC, a subsidiary of RBI. Spreading large deposits across banks keeps everything within the insured limit.

Disclaimer

This calculator provides estimates using standard quarterly-compounding maths. Actual FD maturity may differ slightly based on your bank's exact compounding frequency, day-count convention, and rounding. Interest rates shown for context are indicative as of early 2026 and change frequently. Always confirm the rate and maturity figure on your bank's official FD receipt. This is not financial advice — consult a qualified advisor for investment decisions.