FD Calculator
Calculate your Fixed Deposit maturity amount, total interest earned and effective annual return across different compounding frequencies.
| Year | Opening Balance | Interest Earned | Closing Balance | Growth |
|---|---|---|---|---|
| Year 1 | ₹1,00,000 | +₹7,186 | ₹1,07,186 | |
| Year 2 | ₹1,07,186 | +₹7,702 | ₹1,14,888 | |
| Year 3 | ₹1,14,888 | +₹8,256 | ₹1,23,144 | |
| Year 4 | ₹1,23,144 | +₹8,849 | ₹1,31,993 | |
| Year 5 | ₹1,31,993 | +₹9,485 | ₹1,41,478 |
What is a Fixed Deposit?
A Fixed Deposit (FD) is a financial instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. Unlike a savings account, the interest rate on an FD is locked at the time of booking and remains unchanged regardless of market movements. This makes FDs one of the safest and most predictable investment options available to Indian investors. For market-linked alternatives, explore our SIP Calculator or PPF Calculator.
How is FD Interest Calculated?
FD interest is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t), where A is the maturity amount, P is the principal, r is the annual interest rate, n is the number of times interest compounds per year and t is the tenure in years. The more frequently interest compounds, the higher the effective yield on your deposit. Use our Compound Interest Calculator to explore different compounding scenarios in detail.
Cumulative vs Non-Cumulative FD
In a cumulative FD, interest is compounded and reinvested — the entire maturity amount is paid at the end of the tenure, delivering the highest total return. In a non-cumulative FD, interest is paid out at regular intervals (monthly, quarterly or half-yearly) while the principal stays invested — ideal for retirees or anyone who needs regular income. This calculator computes cumulative FD returns.
Tips to Maximise FD Returns
- Compare rates across banks: Small Finance Banks and NBFCs often offer 0.5%–1% higher rates than large nationalised banks.
- Choose quarterly or monthly compounding: Higher compounding frequency increases your effective annual yield.
- Ladder your FDs: Instead of one large FD, split across multiple tenures (1yr, 2yr, 3yr) to maintain liquidity and reinvest at better rates as they mature.
- Senior citizen rates: Most banks offer an additional 0.25%–0.5% interest rate to depositors aged 60 and above.
- Use tax-saving FDs wisely: 5-year FDs qualify for Section 80C deduction up to ₹1.5 lakh/year, but cannot be broken prematurely.
✓Verified by ToollyX Team · Last updated June 2026
Frequently Asked Questions
Disclaimer: This calculator shows gross (pre-tax) maturity amounts. Actual payout may differ based on TDS deductions and your applicable income tax slab. Always verify current interest rates with your bank before investing.