Saving calculator
FD Calculator
A fixed deposit trades return for certainty. This shows exactly what that certainty pays — including the difference between the rate your bank quotes and the yield you actually receive.
Your numbers
Senior citizens usually get an extra 0.25% to 0.50%.
Total tenure: 5 years.
Maturity value
₹7,10,873
₹5,00,000 held for 5 years earns ₹2,10,873 in interest. Quoted at 7.1%, the effective yield is 7.29%.
- Interest earned
- ₹2,10,873
- Deposit
- ₹5,00,000
- Effective yield
- 7.29%
Deposit against interest
The share of the maturity value that the bank adds.
Balance through the term
Compounding means each year's interest is larger than the last.
- Deposit
- Interest accrued
Year by year
Interest credited in each year of the deposit.
| Year | Interest earned | Closing |
|---|---|---|
| Year 1 | ₹36,456 | ₹5,36,456 |
| Year 2 | ₹39,115 | ₹5,75,571 |
| Year 3 | ₹41,967 | ₹6,17,538 |
| Year 4 | ₹45,026 | ₹6,62,564 |
| Year 5 | ₹48,309 | ₹7,10,873 |
The arithmetic
How this calculator works
No proprietary model, no adjustment factor we will not name. This is the standard formula, applied exactly as written.
Compound: A = P × (1 + r ÷ n)^(n × t)
Simple: A = P × (1 + r × t)
Effective annual yield = (1 + r ÷ n)ⁿ − 1- P
- Deposit amount
- r
- Quoted annual rate, as a decimal
- n
- Compounding periods per year — 4 for the usual quarterly
- t
- Tenure in years
- A
- Maturity value
- Indian banks compound FD interest quarterly by default, which is why the default here is 4. Deposits shorter than six months are often paid simple interest instead.
- The quoted rate and the effective yield are different numbers. At 7.1% compounded quarterly, the effective annual yield is 7.29% — and that is the figure to use when comparing across products.
Worked example
The same maths, on real numbers
₹5,00,000 placed for five years at 7.1%, compounded quarterly.
| Deposit | ₹5,00,000 |
|---|---|
| Rate | 7.1% p.a. |
| Tenure | 5 years |
| Compounding | Quarterly |
| Interest earned | ₹2,10,873 |
| Maturity value | ₹7,10,873 |
| Effective annual yield | 7.29% |
The deposit grows by 42% over five years, and the effective yield is nearly 0.2 points above the quoted rate thanks to quarterly compounding. The figure to sit with is what happens after tax and inflation: for someone in the 30% bracket, 7.29% becomes about 5.1% after tax, which at 6% inflation is a small annual loss of purchasing power. That is the honest trade an FD makes — certainty of amount and date, in exchange for a return that may not outpace prices.
What this calculator assumes
- The deposit is held to maturity, with no premature withdrawal.
- Interest compounds at the frequency selected and is not paid out along the way.
- The rate is fixed for the whole tenure, as it is on a standard FD.
- Figures are gross, before tax.
What it deliberately leaves out
- TDS is not applied. Banks deduct 10% once interest across your deposits with them exceeds ₹50,000 in a year (₹1,00,000 for senior citizens), and the full amount remains taxable at your slab rate regardless.
- Premature withdrawal penalties, typically 0.5% to 1% off the applicable rate, are not modelled.
- Non-cumulative deposits that pay interest out monthly or quarterly will mature at the deposit amount, not the figure shown here.
Questions about the fixed deposit calculation
Almost always day-count. Banks work in actual days rather than clean quarters, so a deposit booked mid-quarter accrues slightly differently. The gap is usually a fraction of a percent. Larger differences generally mean the compounding frequency or the interest type is not what you assumed.
Only if you are under the old regime, have 80C headroom left, and genuinely want a five-year lock-in at a deposit rate. The deduction is real but the interest remains fully taxable each year, which makes the post-tax return unremarkable. PPF and ELSS both deserve a look before you commit.
If the money might be needed at an uncertain time, yes. Splitting one large deposit into several with staggered maturities means you can break one without sacrificing the interest on all of them, and each maturity gives you a chance to reprice if rates have moved.
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