Worked example
Deposit ₹1,00,000 for 5 years at 7% a year and it matures at ₹1,41,478, which is ₹41,478 of interest.
- Deposit amount
- ₹1,00,000
- Interest rate (per year)
- 7%
- Time period
- 5 years
- Interest earned
- ₹41,478
- Maturity value
- ₹1,41,478
| Year | Interest so far | Value |
|---|---|---|
| 1 | ₹7,186 | ₹1,07,186 |
| 2 | ₹14,888 | ₹1,14,888 |
| 3 | ₹23,144 | ₹1,23,144 |
| 4 | ₹31,993 | ₹1,31,993 |
| 5 | ₹41,478 | ₹1,41,478 |
How to use this calculator
- Enter the amount you will deposit.
- Enter the yearly interest rate from your bank.
- Choose the tenure in years or months.
- Pick how often interest is compounded — quarterly for most banks.
- Read the maturity amount and interest, and see the growth year by year.
How FD maturity is calculated
For a cumulative FD, interest is added to the deposit at each compounding interval:
A = P × (1 + R ÷ m)m × t
P is the deposit, R is the yearly rate ÷ 100, m is how many times a year interest is compounded (4 for quarterly) and t is the tenure in years.
Example:₹1,00,000 at 7% for 5 years, compounded quarterly, matures to₹1,41,478 — ₹41,478 of interest.
Frequently asked questions
Which compounding should I choose?
Use what your bank applies to your deposit. Most Indian banks compound cumulative FDs every quarter. More frequent compounding pays a little more: ₹1,00,000 at 7% for 5 years matures to ₹1,40,255 with yearly compounding, ₹1,41,478 with quarterly, and ₹1,41,763 with monthly.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, even on a cumulative FD where you receive it only at maturity.
The bank deducts TDS if your interest from that bank is more than ₹50,000 in a tax year (₹1,00,000 for senior citizens). If your total income is below the taxable limit, you can give the bank a self-declaration so it does not deduct TDS.
Can an FD save tax?
A 5-year tax-saving FD with a scheduled bank qualifies for a deduction under Section 123 of the Income-tax Act, 2025 (the old Section 80C), within the overall ₹1,50,000 limit — but only under the old tax regime. The money is locked in for the full 5 years, and the interest is still taxable.
Do senior citizens get a higher rate?
Many banks pay senior citizens a higher rate than other depositors. Enter the rate your bank offers you and the calculator will use it.
Why might my bank show a slightly different amount?
Some banks pay simple interest on deposits shorter than 6 months, round interest differently, or count days rather than months. This calculator compounds throughout, so very short deposits may show slightly more than the bank pays.
Can I withdraw an FD early?
Most banks allow it, usually with a penalty such as a lower interest rate for the period you held the deposit. The exact rule depends on your bank and the type of FD; tax-saving FDs cannot be closed before 5 years.