How to use it
- Enter the deposit amount and the interest rate your bank offers (% per year).
- Enter the tenure in years, months and days — for special FDs such as 444 days, put the whole tenure in “Days”.
- Choose how interest is compounded. Quarterly is the usual choice for Indian bank FDs; pick Simple for short deposits paid at maturity.
- Read the maturity amount, interest earned and effective yield. Tap “Show yearly breakdown” for the value at the end of each year.
How FD interest is calculated
Most Indian banks compound fixed-deposit interest every quarter. The maturity amount is:
A = P × (1 + r ÷ n)ⁿᵗ
- P = amount deposited, r = annual rate ÷ 100
- n = compounding periods a year (4 for quarterly), t = tenure in years
Example: ₹1,00,000 at 7% for 1 year, compounded quarterly. Each quarter earns 7 ÷ 4 = 1.75%, so A = 1,00,000 × 1.0175⁴ = ₹1,07,186. That’s ₹7,186 of interest, an effective yield of about 7.19% — a little more than 7% because each quarter’s interest earns interest too.
When the tenure isn’t a whole number of quarters (444 days, for example), the calculator compounds the complete quarters and adds simple interest for the days left over: ₹1,00,000 at 7% for 444 days is 1,00,000 × 1.0175⁴ × (1 + 0.07 × 79 ÷ 365) ≈ ₹1,08,810.
Compounding makes a difference
The same ₹1,00,000 at 7% for 1 year:
| Compounding | Maturity | Effective yield |
|---|---|---|
| Monthly | ₹1,07,229 | 7.23% |
| Quarterly | ₹1,07,186 | 7.19% |
| Half-yearly | ₹1,07,122 | 7.12% |
| Yearly or simple | ₹1,07,000 | 7.00% |
Over 5 years the gap widens: quarterly compounding gives about ₹1,41,478, while simple interest gives ₹1,35,000.
Short deposits and simple interest
For short tenures, often under about six months, many banks pay simple interest at maturity instead of compounding. ₹1,00,000 at 7% for 6 months then earns 1,00,000 × 0.07 × ½ = ₹3,500. Tap “Simple” to see this, and check your bank’s rules for your tenure.
Things to check before you book
- Rates differ between banks and tenures, and change from time to time.
- Senior citizens usually get a higher rate — banks add a margin to their regular rate.
- FD interest is taxable, and TDS may be deducted when your interest crosses the yearly threshold.
- Breaking an FD early usually means a lower rate or a penalty.
Saving a fixed amount every month instead? Try the RD calculator. For market-linked investing, see the SIP calculator, and to plan a loan, the EMI calculator.