How is FD interest calculated?

FD interest is typically compounded quarterly in India. The formula is A = P(1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency (e.g. 4 for quarterly), and t is time in years.

What is the minimum tenure for FD?

Most banks offer FDs from 7 days to 10 years. The minimum deposit and tenure vary by bank.

Is FD interest taxable?

Yes. FD interest is taxable under "Income from Other Sources". TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for seniors) in a financial year.

Use this FD calculator to project maturity amount, interest earned, and compounding impact with transparent formulas and FAQ guidance.

FD Calculator – Calculate Fixed Deposit Returns

Use this fixed deposit calculator to estimate your maturity amount and interest earned. Most Indian banks use quarterly compounding for FDs.

Calculate FD Returns

Investment amount (₹)

Interest rate (% per year)

Tenure (years)

Compounding

How FD interest is calculated

A = P × (1 + r/n)^(n×t)

A = Maturity amount, P = Principal, r = Annual interest rate (decimal), n = Compounding frequency per year (e.g. 4 for quarterly), t = Time in years.

Example calculation

If you invest ₹1,00,000 at 6.5% per annum for 5 years with quarterly compounding:

Maturity = 1,00,000 × (1 + 0.065/4)^(4×5) ≈ ₹1,37,689. Interest earned ≈ ₹37,689.

FAQs

Key Terms

Maturity amount: Final value received at deposit end: principal plus accumulated interest.
Compounding: Interest earned on both principal and previously earned interest.
Annualized rate: Interest rate quoted for one year; converted internally for period-wise calculations.

Benefits of This Calculator

Quickly compare tenure and rate combinations before locking deposits.
Understand maturity, principal, and interest split through chart-style outputs.
Use formula and FAQ context to validate bank app numbers confidently.