Fixed Deposits (FDs) are one of the most popular investment options in India. Banks and NBFCs offer FDs with fixed returns, making them a safe choice for risk-averse investors. To know how much you will get at maturity, you need to understand how to calculate Fixed Deposits (FD) interest and maturity amount.
In this guide, we explain the FD calculation formula, show examples of maturity values, and why using an FD Calculator online is the easiest way to estimate your returns.
| Factor | Details |
|---|---|
| Minimum Tenure | 7 days |
| Maximum Tenure | 10 years (varies by bank) |
| Interest Type | Simple Interest / Compound Interest |
| Compounding Frequency | Quarterly (most banks), sometimes yearly or monthly |
| Safety | Up to ₹5 lakh insured by DICGC |
| Tax Rules | Interest is taxable; TDS applies if above ₹40,000 (₹50,000 for senior citizens) |
The maturity amount of a fixed deposit depends on:
SI = (P × R × T) ÷ 100
- P = Principal Amount
- R = Rate of Interest (per annum)
- T = Tenure in years
Maturity = P + SI
A = P × (1 + r/n)n × t
- A = Maturity Amount
- P = Principal Amount
- r = Annual Interest Rate (in decimal)
- n = Number of compounding periods in a year
- t = Time (in years)
Interest Earned = A – P
Principal = ₹1,00,000
Rate = 6% p.a.
Tenure = 3 yearsSI = (1,00,000 × 6 × 3) ÷ 100 = ₹18,000
Maturity = ₹1,18,000
Principal = ₹1,00,000
Rate = 6% p.a.
Tenure = 3 years
Compounding = Quarterly (n = 4)A = 1,00,000 × (1 + 0.06/4)12 = ₹1,19,672
Interest Earned = ₹19,672
Principal = ₹5,00,000
Rate = 7% p.a.
Tenure = 5 years
Compounding = QuarterlyMaturity Value ≈ ₹7,05,000
Interest Earned ≈ ₹2,05,000
Here is an estimate of how a fixed deposit grows at 7% annual interest with quarterly compounding:
| Principal | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| ₹1,00,000 | ₹1,07,000 | ₹1,23,000 | ₹1,41,000 | ₹1,97,000 |
| ₹5,00,000 | ₹5,35,000 | ₹6,15,000 | ₹7,05,000 | ₹9,85,000 |
| ₹10,00,000 | ₹10,70,000 | ₹12,30,000 | ₹14,10,000 | ₹19,70,000 |
Note: Actual FD maturity varies slightly by bank, compounding frequency, and changes in interest rates.
Calculating FD maturity manually can be time-consuming, especially for compound interest. A Fixed Deposit Calculator Tool helps by:
Try our Free FD Calculator Tool to calculate FD maturity instantly.
Your FD grows based on:
That’s it. More time usually means more growth.
Banks use compound interest, which means:
That’s why FDs grow better when you don’t withdraw early.
Most FDs work on compound interest, not simple interest.
No. Once you book an FD:
If you withdraw before maturity:
Yes. Senior citizens usually get:
Yes, very easily.
Fixed Deposits (FDs) are one of the most popular investment options in India. Banks and NBFCs offer FDs with fixed returns, making them a safe choice for risk-averse investors. To know how much you will get at maturity, you need to understand how to calculate Fixed Deposits (FD) interest and maturity amount.
In this guide, we explain the FD calculation formula, show examples of maturity values, and why using an FD Calculator online is the easiest way to estimate your returns.
| Factor | Details |
|---|---|
| Minimum Tenure | 7 days |
| Maximum Tenure | 10 years (varies by bank) |
| Interest Type | Simple Interest / Compound Interest |
| Compounding Frequency | Quarterly (most banks), sometimes yearly or monthly |
| Safety | Up to ₹5 lakh insured by DICGC |
| Tax Rules | Interest is taxable; TDS applies if above ₹40,000 (₹50,000 for senior citizens) |
The maturity amount of a fixed deposit depends on:
SI = (P × R × T) ÷ 100
- P = Principal Amount
- R = Rate of Interest (per annum)
- T = Tenure in years
Maturity = P + SI
A = P × (1 + r/n)n × t
- A = Maturity Amount
- P = Principal Amount
- r = Annual Interest Rate (in decimal)
- n = Number of compounding periods in a year
- t = Time (in years)
Interest Earned = A – P
Principal = ₹1,00,000
Rate = 6% p.a.
Tenure = 3 yearsSI = (1,00,000 × 6 × 3) ÷ 100 = ₹18,000
Maturity = ₹1,18,000
Principal = ₹1,00,000
Rate = 6% p.a.
Tenure = 3 years
Compounding = Quarterly (n = 4)A = 1,00,000 × (1 + 0.06/4)12 = ₹1,19,672
Interest Earned = ₹19,672
Principal = ₹5,00,000
Rate = 7% p.a.
Tenure = 5 years
Compounding = QuarterlyMaturity Value ≈ ₹7,05,000
Interest Earned ≈ ₹2,05,000
Here is an estimate of how a fixed deposit grows at 7% annual interest with quarterly compounding:
| Principal | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| ₹1,00,000 | ₹1,07,000 | ₹1,23,000 | ₹1,41,000 | ₹1,97,000 |
| ₹5,00,000 | ₹5,35,000 | ₹6,15,000 | ₹7,05,000 | ₹9,85,000 |
| ₹10,00,000 | ₹10,70,000 | ₹12,30,000 | ₹14,10,000 | ₹19,70,000 |
Note: Actual FD maturity varies slightly by bank, compounding frequency, and changes in interest rates.
Calculating FD maturity manually can be time-consuming, especially for compound interest. A Fixed Deposit Calculator Tool helps by:
Try our Free FD Calculator Tool to calculate FD maturity instantly.
Your FD grows based on:
That’s it. More time usually means more growth.
Banks use compound interest, which means:
That’s why FDs grow better when you don’t withdraw early.
Most FDs work on compound interest, not simple interest.
No. Once you book an FD:
If you withdraw before maturity:
Yes. Senior citizens usually get:
Yes, very easily.
