FD Calculator

A fixed deposit (FD) is a time-locked deposit with a bank or NBFC, where you commit a principal amount for a fixed tenure at a pre-agreed interest rate. Unlike a savings account where the rate floats and the balance is liquid, a fixed deposit locks both — the rate is fixed at issuance, and the principal cannot be withdrawn before maturity without a penalty.

Indian fixed deposits come in two operating modes. A cumulative FD reinvests interest at every compounding period and pays principal plus accumulated interest at maturity ,this is the wealth-building mode. A non-cumulative FD pays out interest at regular intervals (monthly, quarterly, or yearly) and returns only the original principal at maturity, this is the income-replacement mode. Same product, same rate, different cash-flow profile.

Fixed deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary, up to ₹5 lakh per depositor per bank. This insurance applies equally to public-sector banks, private banks, and small finance banks. The structural safety is identical across these categories, even though the FD rates vary widely.

Fixed deposit interest is calculated using the standard compound interest formula. The fixed deposit calculation formula is the same across every Indian bank — what differs is the compounding frequency they use as default.

Fixed Deposit Interest Calculation Formula

The fixed deposit interest calculation formula for a cumulative FD is:

A = P × (1 + r/n)^(n × t)

where:

This is the fixed deposit compound interest calculator math. Every Indian bank uses the same formula — the only variation is the value of n. The RBI-default and industry-standard compounding frequency for cumulative FDs in India is quarterly (n = 4).

How is Interest Calculated on Fixed Deposits: A Worked Example

Suppose you invest ₹10,00,000 at 7.25% per annum for 5 years, compounded quarterly.

Plugging into the formula: A = 10,00,000 × (1 + 0.0725/4)^(4 × 5) = 10,00,000 × (1.018125)^20 = ₹14.33 lakh.

This is exactly what every bank fixed deposit calculator on the internet will show you for the same inputs. It is the floor of the analysis, not the ceiling — because it ignores tax and inflation.

The same compounding frequency choice has a material effect on the effective annual yield. The table below shows how the same headline 7.25% rate produces different yields depending on n.

Fixed deposit rates vary widely across Indian banks. Public-sector banks tend to offer the lowest rates, large private banks sit in the middle, and small finance banks (which carry the same DICGC ₹5 lakh deposit insurance as commercial banks) offer the highest. The bank fixed deposit calculator on this page accepts any rate; use the table below as a starting reference, then plug your bank's actual rate into the indian bank fixed deposit calculator above for a precise maturity projection.

Rates are indicative for mid-2026. Senior citizens earn 0.5% above these rates at most banks. Use the fixed deposit rates in india calculator and the indian bank fixed deposit interest rates calculator on this page to model your bank's specific offer alongside the post-tax and inflation-adjusted output, the headline rate alone is rarely the relevant comparison.

FDs are not a single allocation decision, they are a portfolio component that must be sized against your horizon, tax slab, and existing equity allocation. A 6-month emergency fund in FDs is mandatory. A 10-year retirement corpus in FDs is usually a mistake. The right question isn't 'how much FD' but 'which money belongs in FD and which doesn't'.

Get a personalised allocation review on the Novelty Wealth app. NovaAI looks at your actual portfolio, income, and goals: and tells you exactly how much of your fixed-income allocation belongs in FDs, how much in debt mutual funds, and how much in liquid sweep accounts. Built by a SEBI Registered Investment Advisor team, not by a bank's deposit-mobilisation desk.

The same fixed deposit interest calculator on this page supports three operating modes. Toggle between them with the mode selector at the top of the widget.

1.Cumulative Mode (Default)

The cumulative fixed deposit calculator reinvests all interest at every compounding period and pays principal plus accumulated interest at maturity. This is the wealth-building mode and the default for most retail FDs. For ₹10 lakh at 7.25% compounded quarterly for 5 years, the cumulative mode (also reachable via the fixed deposit calculator cumulative toggle) shows a maturity value of ₹14.33 lakh.

2. Monthly Income Mode (Non-Cumulative)

The monthly fixed deposit calculator (also called the fixed deposit monthly calculator, fixed deposit monthly income calculator, fixed deposit monthly interest calculator, or fixed deposit monthly interest payout calculator) computes the monthly interest you'd receive on a non-cumulative FD. The annual interest is divided by 12 and paid out each month, with principal returned at maturity.

Example: ₹50 lakh at 7.25% in monthly payout mode yields approximately ₹30,208 per month before TDS: useful for retirees, NRIs parking corpus, or anyone needing predictable monthly cash flow.

3. Maturity Value Mode

The fixed deposit maturity calculator (also called the fixed deposit maturity value calculator) reverses the question, given a target maturity amount, what principal do you need to invest today? This is the fixed deposit amount calculator function. For a target of ₹25 lakh in 5 years at 7.25% quarterly-compounded, the required principal works out to ₹17.45 lakh today.

A fixed deposit is one of several fixed-income and equity alternatives available to Indian investors. Below is how it compares against the most common alternatives.

The sip fixed deposit calculator, sip calculator fixed deposit, mutual fund fixed deposit calculator, and fixed deposit mutual fund calculator views on this page let you compare an FD against an equity SIP head-to-head over the same horizon — pre-tax and post-tax. The recurring fixed deposit calculator tab handles RDs the same way.

Across the last decade (FY17–FY26), Nifty 500 SIPs delivered roughly 13.5% CAGR while average FD rates ranged 6.5–7%. Post-tax in the 30% slab, the gap widens further because equity LTCG is taxed at 12.5% above ₹1.25 lakh per year, while FD interest is taxed at the full slab. For 7-year-plus horizons, equity has materially outperformed fixed deposits.

Fixed deposits are the oldest and most widely held financial product in India. The RBI regulates FD-issuing banks and sets the broad framework though banks set their own rates within that framework. Three structural facts about Indian FDs that the calculator's output reflects.

DICGC Insurance: Deposits up to ₹5 lakh per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation, an RBI subsidiary. This includes both principal and accrued interest, and applies equally to public-sector banks, private banks, and small finance banks. Anything above ₹5 lakh in one bank is uninsured.

Premature Withdrawal: All Indian FDs allow premature withdrawal, but with a penalty typically 0.5% to 1% lower than the contracted rate, applied retroactively from the date of deposit. A 5-year FD broken in Year 2 doesn't earn the 5-year rate for those 2 years it earns the (2-year rate minus penalty) instead. This is why the FD ladder strategy below matters.

NRI FDs: NRE and NRO fixed deposits are available to non-resident Indians, with different tax treatments. NRE FD interest is fully tax-free in India. NRO FD interest is taxed at a flat 30% TDS regardless of amount, with DTAA relief available depending on the country of residence. The FCNR(B) FD variant is held in foreign currency, eliminating exchange-rate risk.

Tax treatment, TDS thresholds, and structural rules every FD investor should know. The fixed deposit tax calculation logic in this section drives the post-tax output on the calculator above.