Fixed Deposit Calculator
Calculate maturity amount for your fixed-term deposits.
Months: 0 – 11
Maturity Amount
$65,703.33
Total Interest
$15,703.33
Principal
$50,000.00
Growth Over Time
| Year | Balance | Interest Earned |
|---|---|---|
| Year 1 | $52,807.24 | $2,807.24 |
| Year 2 | $55,772.09 | $5,772.09 |
| Year 3 | $58,903.41 | $8,903.41 |
| Year 4 | $62,210.53 | $12,210.53 |
| Year 5 | $65,703.33 | $15,703.33 |
The Fixed Deposit Formula
Maturity Amount = P × (1 + r/n)^(n×t), where P is your principal, r is the annual interest rate, n is the number of times interest compounds per year, and t is the tenure in years. The more frequently interest compounds, the faster it snowballs — because each compounding period adds interest on top of previously earned interest, not just the original principal.
A $50,000.00 FD at 5.5% p.a. (compounded quarterly) for 5 yr matures to $65,703.33, earning $15,703.33 in interest — a return of 31%. Remember this is the pre-tax figure — banks deduct TDS at 10% once your annual interest from them crosses ₹40,000 (₹50,000 for senior citizens).
Frequently Asked Questions
How does a fixed deposit (FD) actually work?
You hand a lump sum to a bank for a fixed tenure — say 1, 3, or 5 years — and the bank pays you a pre-agreed interest rate in return. Unlike a savings account, the rate is locked in on day one and doesn't change even if market rates move, and you generally can't withdraw the money penalty-free before maturity.
Why does compounding frequency change my FD returns?
Quarterly or monthly compounding adds interest to your principal more often, so each new interest calculation is on a slightly larger base. On a ₹5,00,000 deposit at 7% for 5 years, annual compounding yields about ₹7,01,000 at maturity, while quarterly compounding pushes it closer to ₹7,10,000 — roughly ₹9,000 more for the same rate and tenure, just from compounding frequency.
FD vs. savings account — which is better?
A savings account gives easy access to your money (2.5–4% interest typically) but the rate floats and is usually lower. An FD locks your money away but pays 5.5–7.5% for the same bank. If you won't need the cash for the tenure, the FD wins on returns; if you need liquidity for emergencies, keep it in savings.
FD vs. mutual funds or SIP — which should I choose?
FDs offer a guaranteed, fixed return with zero market risk — you know exactly what you'll get at maturity. Equity mutual funds and SIPs have historically returned 10–12% annually over the long term but the value can swing up or down year to year. Conservative savers and short-term goals suit FDs; long-term wealth building (7+ years) usually favors SIPs despite the volatility.
Is FD interest taxable, and what is TDS?
Yes. FD interest is added to your taxable income and taxed at your income tax slab rate. Banks also deduct TDS (Tax Deducted at Source) at 10% if your total FD interest from that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). You can claim this TDS back at tax filing time if your total tax liability is lower, or submit Form 15G/15H to avoid the deduction if your income is below the taxable limit.
What happens if I withdraw my FD before maturity?
Most banks allow premature withdrawal but charge a penalty, typically 0.5–1% lower than the rate applicable for the period you actually held the deposit. For example, if you booked an FD at 7% for 5 years but withdraw after 2 years, you'll likely earn only the 2-year rate minus the penalty — not the 7% you were originally promised.
What is FD laddering and why do people use it?
Laddering means splitting one large deposit into several smaller FDs with staggered maturities — for example, ₹1,00,000 each maturing in 1, 2, 3, and 4 years instead of ₹4,00,000 locked for 4 years. This keeps part of your money accessible every year without breaking the whole deposit, while still capturing longer-tenure rates on the rest.
Do senior citizens get better FD rates?
Yes — most Indian banks offer senior citizens (60+) an additional 0.25–0.75% interest on top of the standard FD rate. On a long-tenure, large-principal deposit this adds up meaningfully, and many banks also raise the tax-free TDS threshold to ₹50,000 for senior citizens.
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