Work out the maturity value and interest on a bank or post office fixed deposit. Indian banks compound FD interest every quarter, and the calculator does the same by default.
| Year | Opening | Interest | Closing |
|---|
For a cumulative FD, interest is added to the deposit every quarter and then earns interest itself:
Maturity = P × (1 + r ÷ n)n × t, where P is the deposit, r is the yearly rate ÷ 100, n is the number of compounding periods a year (4 for quarterly) and t is the tenure in years.
If you choose a monthly or quarterly payout FD instead, the interest is paid to your account and does not compound. Pick "Simple interest" above to see that case.
| Tenure | Interest | Maturity |
|---|---|---|
| 1 year | ₹7,186 | ₹1,07,186 |
| 2 years | ₹14,888 | ₹1,14,888 |
| 3 years | ₹23,144 | ₹1,23,144 |
| 5 years | ₹41,478 | ₹1,41,478 |
| 10 years | ₹1,00,160 | ₹2,00,160 |
To see the tax on your interest, use our income tax calculator.
Deposits in banks are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest together. Spreading large amounts across banks keeps each within the limit. Senior citizens usually get 0.25% to 0.50% extra interest.
At 7% compounded quarterly, about ₹7,186, so you get ₹1,07,186 at maturity. At 6.5% it is about ₹6,660.
Quarterly compounding makes the effective yearly return a little higher than the quoted rate. A 7% FD earns an effective 7.19% a year.
Yes, for most FDs, but banks usually cut the rate by 0.5% to 1% as a penalty. Tax-saver FDs cannot be broken before 5 years.
FDs give a fixed, known return and DICGC insurance up to ₹5 lakh. Debt funds can be more flexible but their returns are not fixed, and gains are taxed at your slab rate just like FD interest.
