Invested Amount
₹ 2,00,000
Total Interest Earned
₹ 46,331
Tenure Applied
3.0 Years (36 Months)
Total Maturity Value
₹ 2,46,331
About the Fixed Deposit (FD) Calculator
Our free Fixed Deposit (FD) Calculator helps investors and savers calculate the exact maturity amount and interest earned on their lump-sum bank deposits. By factoring in flexible tenures, interest rates, and compounding frequencies (such as quarterly or monthly compounding), this tool provides a clear projection of your savings growth.
1. Fixed Deposit Mathematical Formulas
Fixed deposit maturity values and accumulated interest earnings are computed using standard compound interest compounding frequency equations:
Total Maturity Value = Deposit Amount × (1 + (Annual Interest Rate Percentage / 100) / Compounding Frequency)Compounding Frequency × Tenure in Years
Total Interest Earned = Total Maturity Value − Deposit Amount
Where the defined variables are:
- Deposit Amount (P): Initial principal lump-sum invested in the fixed deposit.
- Annual Interest Rate (r): Nominal annual percentage rate (p.a.) offered by the bank.
- Compounding Frequency (n): Number of compounding periods per year (4 for quarterly, 12 for monthly, 1 for annual).
- Tenure (t): Deposit duration expressed in years (or months divided by 12).
2. Practical Worked Example
Let us review a standard fixed deposit investment scenario:
- Total Deposit Amount (P): ₹2,00,000 (₹2 Lakhs)
- Interest Rate (r): 7.0% per annum
- Deposit Tenure (t): 3 years (36 months)
- Compounding Frequency (n): Quarterly (4 times per year)
Calculation Breakdown:
- Periodic Interest Rate = 7% / 4 = 1.75% per quarter ($0.0175$)
- Total Compounding Periods = 4 quarters/year × 3 years = 12 quarters
- Total Maturity Value = ₹2,00,000 × (1 + 0.0175)12 = ₹2,00,000 × (1.0175)12 $\approx$ ₹2,46,331
- Total Interest Earned = ₹2,46,331 − ₹2,00,000 = ₹46,331
Knowing your exact fixed deposit maturity payout in advance helps you plan your financial goals reliably!
3. Frequently Asked Questions (FAQs)
1. Is FD interest taxable in India?
Yes, interest earned on fixed deposits is fully taxable as per your applicable income tax slab rate. Banks also deduct Tax Deducted at Source (TDS) if interest exceeds specified annual limits.
2. What is the difference between cumulative and non-cumulative FDs?
In a cumulative FD, interest is compounded and paid out entirely at maturity along with the principal. In a non-cumulative FD, interest is paid out periodically (monthly, quarterly, or yearly) to your savings account.
3. Are senior citizens eligible for higher fixed deposit interest rates?
Yes, most banks and non-banking financial companies (NBFCs) in India offer an additional interest rate markup (typically 0.50% p.a.) for senior citizens.
4. What happens if I break or withdraw my fixed deposit prematurely?
Premature withdrawal of fixed deposits usually attracts a penalty in the form of a minor reduction in the applicable interest rate (typically 0.5% to 1% lower than the contracted rate for the period held).
5. What is Tax-Saving Fixed Deposit and what are its locking terms?
Tax-saving fixed deposits qualify for tax deductions under Section 80C (up to ₹1.5 Lakhs per financial year) but come with a mandatory lock-in period of 5 years.
6. Is money deposited in bank fixed deposits insured?
Yes, bank fixed deposits in India are insured up to ₹5,00,000 per depositor per bank by DICGC (Deposit Insurance and Credit Guarantee Corporation), an agency of the RBI.
7. Can I take a loan against my fixed deposit?
Yes, most banks permit overdraft facilities or loans against fixed deposits up to 80% to 90% of the deposit value at a slightly higher interest rate than the FD yield.
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