Use this Fixed Deposit (FD) Calculator to estimate the maturity amount, total interest earned and potential TDS implications on a bank FD. Enter your deposit amount, annual interest rate, tenure and compounding frequency to calculate an indicative return. Actual maturity proceeds depend on your bank’s deposit terms and calculation method.
| Period | Opening Balance | Interest Earned | Closing Balance |
|---|
This calculator estimates a cumulative FD where interest is reinvested and paid at maturity. For a partial compounding period, it uses a simple-interest approximation for the remaining fraction. Your bank may use a different day-count convention or product-specific method. TDS depends on aggregate interest and applicable rules; this tool does not calculate your final tax liability.
What Is a Fixed Deposit?
A Fixed Deposit (FD) is a deposit product offered by banks and other eligible institutions. You invest a lump sum for an agreed period and earn interest according to the terms set when the deposit is opened. A fixed rate can make returns more predictable than market-linked investments, although premature withdrawal conditions and the institution’s applicable protections still matter.
Why FD Rates Are Not the Same Everywhere
Each bank sets its own FD rates, subject to applicable regulations and its deposit terms. The rate can depend on tenure, deposit amount, customer category and the type of deposit. Small finance banks may offer higher rates than some larger banks, but you should compare the institution, applicable deposit insurance, terms and liquidity requirements as well as the headline rate. Always check the current rate card before booking a deposit.
How FD Interest Is Calculated
For a cumulative FD, interest is added to the balance at the applicable compounding intervals. Subsequent interest is then calculated on the increased balance. A common compound-interest formula is:
A = P (1 + r/n)nt
- A = Maturity amount
- P = Initial deposit
- r = Annual interest rate expressed as a decimal
- n = Compounding periods per year
- t = Tenure in years
This is a standard compound-interest model. Actual bank calculations can differ for incomplete compounding periods, day-count conventions and the terms of a particular FD.
Compare FD Rates Before Investing
Rates change frequently, so a fixed rate range can quickly become outdated. Compare current official rate cards for the same tenure and deposit amount. Check whether the quoted rate applies to regular customers or senior citizens, whether there are special-tenure conditions, and what happens if you withdraw early.
FD Rules You Should Know
FD interest is generally taxable under the applicable income-tax rules. Tax deducted at source (TDS) is a withholding mechanism, not necessarily your final tax liability. From 1 April 2025, the Section 194A threshold for interest on bank time deposits is generally ₹50,000 for non-senior citizens and ₹1,00,000 for resident senior citizens. The applicable threshold considers relevant aggregate interest, rather than just the maturity interest of one FD. Check current Income Tax Department guidance for your circumstances.
Premature withdrawal may lead to interest being recalculated for the actual period held and may involve a penalty, depending on the product terms. Tax-saver FDs have specific lock-in conditions. Eligible bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including principal and interest combined, subject to the applicable rules.
FD vs RD: What Is the Difference?
| Feature | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|
| Investment Type | One-time lump sum deposit | Regular instalments, usually monthly |
| Suitable For | People with funds available to invest | People building savings gradually |
| Cash Flow | Most funds are deposited upfront | Contributions are spread over time |
| Returns | Depend on deposit rate and tenure | Depend on rate, instalment schedule and tenure |
Both products can provide predictable returns under their terms. An FD may suit someone with a lump sum, while an RD may suit someone who wants to save regularly from monthly income.
FD vs Savings Account
| Feature | Fixed Deposit | Savings Account |
|---|---|---|
| Interest Rate | Often higher, depending on the product | Usually lower, but varies by bank |
| Liquidity | Premature withdrawal terms may apply | Generally easier access to funds |
| Returns | May be fixed for the agreed tenure | Rate may change |
| Risk and Protection | Depends on institution and applicable deposit protection | Depends on institution and applicable deposit protection |
An FD may offer a higher rate in exchange for keeping money deposited for an agreed period. A savings account is generally more suitable for everyday transactions and emergency funds.
Advantages of Fixed Deposits
- Returns can be predictable when the rate is fixed for the agreed tenure.
- Returns are not directly linked to daily stock-market movements.
- A range of tenures may be available.
- Some banks offer additional rates to eligible senior citizens.
- Many banks offer loans or overdrafts against eligible FDs.
- Many customers can open or manage FDs online.
Disadvantages of Fixed Deposits
- Interest is generally taxable under applicable tax rules.
- Returns may not keep pace with inflation.
- Premature withdrawal may reduce interest or attract a penalty.
- Returns may be lower than those of higher-risk investments over some long periods.
Tabassum is a government document researcher and writer with over 5 years of experience exclusively dedicated to tracking and simplifying Central and State Government document processes across India. She has researched and published detailed guides on 100+ government documents and certificates – including Aadhaar Card, PAN Card, Ration Card, Domicile Certificate, and Birth Certificate – covering all states and the Central Government, helping lakhs of Indian citizens successfully complete their paperwork in simple, easy-to-understand language.