FD Calculator

Estimate fixed deposit maturity with compounding.

Overview

Calculates the maturity corpus and interest income on bank fixed deposits across quarterly, monthly, and cumulative compounding intervals.

Formula & Calculation Method

A = P × (1 + r/n)^(n×t)

A = Maturity amount, P = Principal deposit, r = Annual interest rate (decimal), n = Compounding frequency per year (4 for quarterly), t = Tenure in years.

Worked Example: ₹2,00,000 FD for 3 Years at 7.25% Quarterly Compounding

Inputs: Principal = ₹2,00,000 | Rate = 7.25% p.a. | Tenure = 3 Years (Quarterly Compounding)

  • Periodic rate = 0.0725 / 4 = 0.018125
  • Compounding cycles = 4 × 3 = 12 quarters
  • Maturity A = ₹2,00,000 × (1.018125)^12 = ₹2,47,764

Summary: Principal = ₹2,00,000 | Total Interest = ₹47,764 | Maturity Value = ₹2,47,764

Common Use Cases

  • Capital Preservation: Secure guaranteed fixed returns for emergency fund reserves.
  • Senior Citizen Income: Calculate enhanced interest yields (typically 0.50% higher) for retirees.
  • Tax Planning: Estimate annual TDS deduction thresholds on accrued bank interest.

Frequently Asked Questions

Is FD interest taxed every year or at maturity?

Interest is taxed on an accrual basis each financial year, and banks deduct 10% TDS if interest exceeds threshold limits.

What is Form 15G / 15H?

Forms submitted by individuals to avoid TDS deduction if their total annual taxable income is below the exemption limit.

Can I take a loan against my Fixed Deposit?

Yes, banks usually offer overdraft loans up to 90% of your FD value at 1% to 2% above the FD interest rate.

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