The concept
What a fixed deposit is
A fixed deposit is a lump-sum deposit held with a bank for a fixed term at a fixed, pre-agreed interest rate.
This calculator assumes the entered rate is constant for the full term and compounds at the frequency you select — most Indian banks compound FDs quarterly.
The method
How the calculation works
The annual rate is divided by the number of compounding periods per year and applied across the total number of periods in the term. Actual bank FDs may round interest differently, apply TDS, or offer different rates for senior citizens or premature withdrawal.
P is the deposit amount, r is the annual rate, n is the compounding periods per year and t is the term in years.
Worked example
A neutral example
Depositing ₹1,00,000 at an assumed 7% annual rate, compounded quarterly, over 5 years produces an illustrative maturity value before tax.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
FD Calculator questions
Does this calculator include tax deducted at source (TDS)?+
No. FD interest is generally taxable and banks may deduct TDS; this estimate is before any tax.
Why does quarterly compounding matter?+
More frequent compounding produces slightly more interest than annual compounding at the same nominal rate.
Does this model premature withdrawal penalties?+
No. It assumes the deposit is held for the full entered term.