What is quarterly interest payout FD?

In a quarterly interest payout FD, the bank pays you interest every three months. Quarterly payout = (Principal × Annual rate) / 4.

Cumulative vs quarterly payout FD?

Cumulative FD compounds interest and pays at maturity, usually giving higher total returns. Quarterly payout gives regular income but no compounding on the interest paid out.

FD Quarterly Interest Calculator

Find how much interest you get every quarter on a quarterly-payout FD. Enter principal and annual rate.

Calculate Quarterly Payout

Principal (₹)

Rate (% p.a.)

Formula

Quarterly interest = (Principal × Annual rate) / 4

Interest is paid every three months. Simple calculation on principal; no compounding on payouts.

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.

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Quarterly payout vs quarterly compounding

People often confuse two different schemes that both use the word "quarterly". A quarterly payout FD pays the interest into your savings account every three months — the principal stays the same and there is no compounding. A standard cumulative FD with quarterly compounding keeps the interest inside the deposit and lets it earn fresh interest the next quarter. The calculator above models the payout scheme, where each quarter you receive (Principal × Annual rate) ÷ 4.

Quarterly payout suits households that need a top-up to their salary or pension every quarter — for example to pay school fees in April, July and October, or for festival and insurance-premium months. Like other payout FDs, the income is fully taxable in the year received, and you should submit Form 15G (under 60) or 15H (senior citizen) at the start of every financial year if your total income is below the basic exemption to avoid unnecessary TDS.

Worked example: ₹4,00,000 at 7.25% — quarterly payout

Principal: ₹4,00,000
Annual rate: 7.25%
Quarterly interest: ₹7,250
Annual interest: ₹29,000

Four payouts of ₹7,250 give you ₹29,000 a year. Useful as a top-up for quarterly insurance premiums or recurring expenses — but remember that the principal of ₹4 lakh never grows.