ganak.appFD Calculator
Calculate Fixed Deposit (FD) maturity amount and interest earned for Indian banks. Compare FD rates across SBI, HDFC, ICICI, and other banks. Supports quarterly, monthly, and cumulative interest payout options. Essential for safe investment planning, senior citizen FD rates, and tax-saving 5-year FDs under Section 80C.
Yearly FD Growth
See how your FD grows year by year
| Year | Opening Balance | Interest Earned | Closing Balance |
|---|---|---|---|
| 1 | ₹5,00,000 | ₹35,930 | ₹5,35,930 |
| 2 | ₹5,35,930 | ₹38,511 | ₹5,74,441 |
| 3 | ₹5,74,441 | ₹41,279 | ₹6,15,720 |
| 4 | ₹6,15,720 | ₹44,245 | ₹6,59,965 |
| 5 | ₹6,59,965 | ₹47,424 | ₹7,07,389 |
What is a Fixed Deposit (FD)?
A safe, guaranteed-return savings instrument from banks
A Fixed Deposit (FD) is a popular savings and investment option offered by banks and NBFCs in India. You deposit a lump sum amount for a fixed tenure at a predetermined interest rate. In return, the bank guarantees a fixed return, regardless of market fluctuations.
FDs are considered low-risk because the principal and interest are assured, making them a preferred choice for conservative investors, retirees, and anyone who wants predictable, stable growth on their money.
- Lump sum investment: Deposit a fixed amount at the beginning
- Fixed tenure: Can range from a few days to several years (e.g., 7 days to 10 years)
- Guaranteed returns: Interest rate is fixed and known upfront
- Taxable: Interest earned is fully taxable as per your income tax slab
FD Interest Calculation
Cumulative vs non-cumulative FD types explained
Two Types of Fixed Deposits:
Cumulative FD
In a cumulative FD, the interest you earn is added back to the principal at each compounding interval (monthly, quarterly, half-yearly, or yearly). This leads to compounding, where you earn interest on interest. The entire maturity amount (principal + interest) is paid at the end of the tenure. This option is ideal for long-term wealth accumulation.
Non-cumulative FD
In a non-cumulative FD, the interest is not re-invested. Instead, it is paid out to you periodically (monthly, quarterly, half-yearly, or annually). This is useful if you want regular income from your FD, for example during retirement. The principal amount remains constant throughout the tenure.
The FD calculator lets you choose FD type and frequency and instantly see the maturity value or periodic payout.
FD Compound Interest Formula
Maturity formulas for both cumulative and simple interest FDs
For Cumulative FD (Compound Interest):
A = P × (1 + r/n)^(n × t)P = Principal (FD Amount)
r = Annual interest rate (in decimal)
n = Number of compounding periods per year (12 for monthly, 4 for quarterly, 2 for half-yearly, 1 for yearly)
t = Tenure in years
A = Maturity amount
Total interest earned = A - P
For Non-cumulative FD (Simple Interest):
Interest = P × r × tThe total interest is then divided across the payout periods (monthly, quarterly, etc.) to arrive at the periodic interest you receive.
FD Example
A 5-year quarterly-compounded FD worked calculation
Cumulative FD Example:
Suppose you invest ₹5,00,000 in a cumulative FD at 7% p.a. for 5 years, compounded quarterly:
- Principal: ₹5,00,000
- Interest rate: 7% p.a.
- Tenure: 5 years
- Compounding frequency: Quarterly (n = 4)
Using the FD calculator:
- Maturity amount: approx ₹7,07,389
- Total interest earned: approx ₹2,07,389
This shows how compounding over multiple years can significantly increase your final amount compared to simple interest.
How to Maximise Your FD Returns
Tenure, rate comparison, laddering, and tax strategies
1. Choose the Right Tenure
Short tenures give flexibility but lower returns. Longer tenures usually offer higher rates, but your money stays locked in. Use the FD calculator to test different tenures and find the sweet spot for your needs.
2. Compare Rates Across Banks
Even a 0.25% difference in interest rate can make a noticeable difference in maturity amount over several years. Shop around and compare rates from different banks and NBFCs.
3. Use Cumulative FDs for Growth, Non-cumulative for Income
If you don't need regular income, cumulative FDs usually result in higher final values because of compounding. If you need cash flow, non-cumulative FDs provide predictable periodic payouts.
4. Stagger FDs (Laddering)
Instead of one big FD, you can create multiple FDs with different maturities so that some portion of your money matures every year, giving you liquidity and the ability to reinvest at better rates.
5. Consider Tax Impact
FD interest is taxable as per your income slab. Use the calculator's Tax toggle in Advanced Options to estimate post-tax returns directly. Senior citizens often get higher rates and better tax benefits.
FD vs PPF vs RD
Risk, returns, lock-in, and liquidity compared
| Feature | FD | PPF | RD |
|---|---|---|---|
| Risk | Low | Very low (backed by Govt.) | Low |
| Returns | Fixed, taxable | Fixed, tax-free | Fixed, taxable |
| Type of investment | Lump sum | Yearly / monthly contributions | Monthly recurring |
| Lock-in | Flexible (days to years) | 15 years | Tenure chosen at start |
| Liquidity | Premature withdrawal with penalty | Very restricted | Premature closure allowed with conditions |
FDs are ideal if you want fixed, predictable returns over a specific period.
PPF is better for long-term, tax-free retirement-oriented savings.
RD is useful when you want to invest smaller amounts every month instead of a lump sum.
FD Withdrawal & Premature Closure
Penalties, reduced rates, and what to check before breaking an FD
Most fixed deposits allow premature withdrawal before the original maturity date, but usually with a penalty. The bank may reduce the interest rate applicable to your FD if you break it early. Some special FDs may not allow premature withdrawal at all.
Always check:
- Whether premature closure is allowed
- What penalty or reduced rate will apply
- If there are separate charges for breaking the FD
We encourage you to use the FD calculator to plan your tenure properly so you minimize the need for premature withdrawal. Consider keeping an emergency fund separate from your FD investments.
Frequently Asked Questions
Common questions about fixed deposits, interest rates, and maturity