How much will your FD mature to?
Enter your deposit amount, interest rate, and tenure to instantly see your FD maturity amount and total interest earned.
Calculate FD maturity value
Adjust sliders to see your maturity amount.
Maturity Amount
₹1,22,504
after 3 years at 7%
Principal
₹1,00,000
Interest Earned
₹22,504
Rate p.a.
7%
Tenure
3 yr
Principal vs Interest
FD gives guaranteed returns. Compare post-tax return with inflation for real growth.
₹1,00,000 at 7% — maturity by tenure
₹1,07,000
+₹7,000 interest
₹1,14,490
+₹14,490 interest
₹1,22,504
+₹22,504 interest
₹1,40,255
+₹40,255 interest
₹1,96,715
+₹96,715 interest
Annual compounding. Actual bank returns may differ with quarterly compounding.
How to use
Enter deposit amount
Type the amount you want to deposit.
Add interest rate
Enter the annual rate offered by your bank.
Choose tenure
Select the FD duration in years.
See maturity value
Instantly see maturity amount and interest earned.
Key insight
FD interest is fully taxable. At 7% FD rate, a 30% tax bracket investor earns only ~4.9% post-tax — below 6% inflation. FDs work best for capital protection and short-term goals, not long-term wealth building.
Rate benchmarks
Regular citizens
Standard bank FD
6.5 – 7.5%
Senior citizens
+0.25–0.50% extra
7.0 – 8.0%
Small finance banks
Higher rate, check cover
7.5 – 9.0%
DICGC insurance
Bank deposits are insured up to ₹5 lakh per depositor per bank by the Deposit Insurance and Credit Guarantee Corporation (DICGC). If you have more than ₹5 lakh to deposit, consider spreading across multiple banks.
What is a Fixed Deposit (FD)?
A Fixed Deposit is a financial instrument offered by banks and non-banking financial companies (NBFCs) that allows you to deposit a lump sum for a predetermined period at a fixed interest rate. Unlike a savings account where the rate can change at any time, the FD rate is locked in at the time of opening — so you know exactly what you will receive at maturity before you even deposit the money.
FDs are among the most widely used savings instruments in India because they combine capital safety, predictable returns, and flexibility in tenure. They are particularly well-suited for short-to-medium-term goals where protecting the principal is more important than chasing higher returns.
Capital protection
Your principal is safe regardless of market conditions. Bank FDs up to ₹5 lakh are insured by DICGC.
Flexible tenure
Choose from 7 days to 10 years. Match the maturity date to your planned expense.
Guaranteed returns
The interest rate is fixed at the time of deposit. No surprises at maturity.
How is FD Interest Calculated?
FD interest can be calculated in two ways depending on the type of deposit you choose: simple interest or compound interest. Most bank FDs use compound interest, compounded quarterly, which gives a slightly higher effective return than the stated annual rate.
Simple Interest
SI = P × R × T ÷ 100
P — Principal amount
R — Annual interest rate (%)
T — Tenure in years
Example
₹1,00,000 at 7% for 3 years:
SI = 1,00,000 × 7 × 3 ÷ 100 = ₹21,000
Maturity = ₹1,21,000
Compound Interest (used by most banks)
M = P × (1 + r/n)^(n×t)
P — Principal amount
r — Annual rate (decimal)
n — Compounding frequency (4 = quarterly)
t — Tenure in years
Example (quarterly compounding)
₹1,00,000 at 7% for 3 years (n=4):
M = 1,00,000 × (1 + 0.07/4)^(4×3)
= 1,00,000 × (1.0175)^12 = ₹1,23,144
Key difference
On the same ₹1,00,000 at 7% for 3 years, simple interest gives ₹21,000 while quarterly compounding gives ₹23,144 — a difference of ₹2,144. Over longer tenures and larger amounts, this gap becomes significant. Always check whether your bank compounds quarterly or annually.
FD Interest Rates — What to Expect
FD interest rates vary across banks, NBFCs, and tenure. As a general reference, the table below shows typical rate ranges across different depositor categories. Always check the current rates directly with your bank before opening an FD, as rates change with RBI policy decisions.
| Depositor Type | Typical Rate Range | Additional Benefit |
|---|---|---|
| Regular citizens | 6.5% – 7.5% | Standard rate |
| Senior citizens (60+) | 7.0% – 8.0% | +0.25% to +0.50% over regular |
| Super senior (80+) | 7.25% – 8.25% | Higher premium at select banks |
| NBFC / small finance banks | 7.5% – 9.0% | Higher rate, check DICGC cover |
Rates are indicative and subject to change. Verify current rates with your bank or NBFC before investing. DICGC insurance covers deposits up to ₹5 lakh per depositor per bank.
Tax on FD Interest — What You Actually Earn
FD interest is fully taxable in India. It is added to your total income and taxed at your applicable income tax slab rate. This means the post-tax return on an FD can be significantly lower than the stated rate, especially for investors in higher tax brackets.
| Tax Slab | FD Rate | Post-tax Return | Real return at 6% inflation |
|---|---|---|---|
| 0% (no tax) | 7.0% | 7.00% | +1.00% |
| 5% slab | 7.0% | 6.65% | +0.65% |
| 20% slab | 7.0% | 5.60% | −0.40% |
| 30% slab | 7.0% | 4.90% | −1.10% |
TDS on FD interest
Banks deduct TDS at 10% if your total FD interest from one bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). Submit Form 15G (or 15H for seniors) if your total income is below the taxable limit to avoid TDS deduction.
Tax-saving FD (Section 80C)
A 5-year tax-saving FD qualifies for deduction under Section 80C up to ₹1.5 lakh per year. However, the interest earned is still taxable. Premature withdrawal is not allowed for tax-saving FDs.
FD Laddering — Earn More While Staying Liquid
One of the most effective strategies for FD investors is laddering — splitting a lump sum across multiple FDs with different maturities instead of putting everything into one deposit. This gives you the benefit of higher rates on longer-tenure FDs while ensuring a portion matures every year for reinvestment or use.
| FD | Amount | Tenure | Rate | Matures in |
|---|---|---|---|---|
| FD 1 | ₹1,00,000 | 1 year | 6.75% | Year 1 |
| FD 2 | ₹1,00,000 | 2 years | 7.00% | Year 2 |
| FD 3 | ₹1,00,000 | 3 years | 7.25% | Year 3 |
| FD 4 | ₹1,00,000 | 4 years | 7.50% | Year 4 |
| FD 5 | ₹1,00,000 | 5 years | 7.75% | Year 5 |
With this structure, ₹1 lakh matures every year. When FD 1 matures in Year 1, you reinvest it as a new 5-year FD at the prevailing rate. Over time, all your FDs become 5-year deposits earning the highest available rate — while you always have one maturing annually for liquidity.
Better liquidity
A portion of your money is always close to maturity, reducing the need to break an FD early.
Higher average rate
Longer-tenure FDs earn more. Laddering lets you access these rates without locking all your money long-term.
Reinvestment flexibility
Each maturity is an opportunity to reinvest at current rates or redirect funds to a different goal.
FD vs Other Savings Instruments
FDs are not the only option for safe, predictable returns. Here is how they compare with other popular instruments to help you decide what fits your goal.
| Instrument | Typical Return | Risk | Liquidity | Tax on returns |
|---|---|---|---|---|
| Fixed Deposit | 6.5 – 7.5% | None | Medium | Fully taxable |
| PPF | 7.1% | None | Low | Tax-free |
| Savings Account | 2.5 – 4% | None | High | Fully taxable |
| Debt Mutual Fund | 6 – 8% | Low | High | LTCG / STCG |
| Equity Mutual Fund | 10 – 14%* | High | High | LTCG 10% / STCG 15% |
| RD | 6.5 – 7.5% | None | Medium | Fully taxable |
*Equity mutual fund returns are historical averages and not guaranteed. FD returns are indicative. Consult a financial advisor before making investment decisions.
Related tools