FD Calculator

How is FD maturity calculated?

A fixed deposit pays a guaranteed interest rate, compounded (usually quarterly in India). The maturity value is your deposit grown at that rate over the tenure. Because the rate is fixed and guaranteed, an FD carries almost no risk — but the returns are typically lower than market-linked options over long periods.

FD vs other options

FDs are ideal for capital safety and short-term goals. For long-term wealth, equity SIPs or lump sums have historically earned more, at the cost of volatility. Many investors use FDs for their emergency fund and short-term needs, and equity for long-term growth.

A note on tax

FD interest is fully taxable at your income-tax slab, which reduces the effective return — especially for those in higher brackets. Factor this in when comparing an FD to tax-advantaged options.

Related tools

• RD Calculator — for monthly deposits instead of a lump sum.
• Debt vs Invest — is a guaranteed FD-like return better than paying debt?

Frequently asked questions

How is FD interest calculated in India?

Most banks compound FD interest quarterly. The maturity value is the deposit grown at the quarterly rate across the tenure. This calculator uses quarterly compounding.

Is FD interest taxable?

Yes, FD interest is taxable at your income-tax slab rate, and TDS may apply. This lowers your effective post-tax return.

Is an FD better than a mutual fund?

An FD is safer with guaranteed returns but usually earns less than equity over the long run. Use FDs for safety and short horizons, equity for long-term growth.