# FD Calculator: Maturity and Interest | Aalekh > FD calculator for Indian bank fixed deposits with quarterly compounding. Find maturity value, effective yield, TDS on interest and senior citizen rates. Canonical URL: https://www.aalekh.ai/calculators/fd [All calculators](/calculators) For individualsRates reviewed September 2026 # FD Calculator for Fixed Deposit Maturity and Interest An FD calculator converts the deposit amount, the contracted rate and the tenure into the maturity value the bank will actually credit. The detail that most online tables gloss over is compounding: Indian banks compound term deposit interest quarterly, so the amount you receive is higher than the nominal rate multiplied by the years. As of September 2026 the RBI repo rate is 5.25% and scheduled bank deposit rates span a wide band, roughly 2.50% to 8.25% a year across all tenures from seven days to ten years, with the largest banks paying close to 6% to 7% on one to five year deposits for ordinary depositors. Small finance banks sit at the upper end of that range. Senior citizens are usually paid an extra 0.50% a year, and some banks add a further premium on longer tenures. The calculator also matters for tax planning. Interest is taxed as income in the year it accrues, not only when the deposit matures, so a large cumulative FD can create a tax liability years before you see the money. ## FD Calculator Deposit amount ₹ Annual interest rate Add the senior citizen premium, usually about 0.50%, if it applies. % Tenure years Plus months Compounding Quarterly is the Indian bank standard for term deposits. MonthlyQuarterlyHalf-yearlyAnnual Deposit type Cumulative, paid at maturityPeriodic interest payout Maturity value ₹7,16,130 on ₹5 lakh over 5 years Total interest earned7.25% compounded quarterly ₹2,16,130 Effective annual yieldnominal 7.25% 7.45% Interest credited in the first yeartaxable in the year it accrues, not only at maturity ₹37,248 Tenure20 compounding periods 5 years Total return on the deposit 43.23% The same deposit as a payout FD₹34,880 less interest ₹1,81,250 Maturity net of 10% TDS on the interestTDS starts once interest crosses ₹50,000 in a year, ₹1,00,000 at 60 and above ₹6,94,517 - TDS is an advance collection at 10%; the interest itself is taxed at your slab rate, so a higher-slab depositor still has tax to pay. - A premature withdrawal is repriced at the card rate for the period actually run, less a penalty of about 0.5% to 1%. ## The formula M = P × (1 + r ÷ n)^(n × t) P Principal deposited r Annual interest rate as a decimal, so 7.25% is 0.0725 n Compounding frequency a year, which is 4 for the quarterly compounding Indian banks use t Tenure in years M Maturity value, principal plus compounded interest For a non-cumulative deposit that pays interest out monthly, quarterly or annually, nothing compounds, so interest for the period is simply P × r × t. ## How to calculate it 1. 1 ### Pick the exact card rate for your tenure Bank rate cards are tenure buckets, and the peak rate often sits on an odd tenure such as 444 or 555 days. Take the rate for the bucket your deposit actually falls into, and add the senior citizen premium only if the depositor is 60 or above on the date of the deposit. 2. 2 ### Decide between cumulative and payout A cumulative deposit reinvests the quarterly interest and pays everything at maturity, so it compounds. A payout deposit credits interest to your account each month or quarter, which does not compound and yields less in total, but gives you regular income. 3. 3 ### Apply the quarterly compounding formula Divide the annual rate by 4 to get the quarterly rate, multiply the tenure in years by 4 to get the number of quarters, raise (1 + quarterly rate) to that power and multiply by the principal. 4. 4 ### Convert the nominal rate into an effective yield The effective annual yield is (1 + r ÷ 4)^4 − 1. A nominal 7% compounded quarterly is an effective 7.19% a year, and 7.5% is an effective 7.71%. Compare deposits on effective yield, because a bank compounding monthly and one compounding quarterly are not offering the same thing at the same headline rate. 5. 5 ### Deduct the tax on the interest Interest is fully taxable at your slab rate and accrues year by year. Work out the interest credited in each financial year, not just the total at maturity, so the income is reported in the right year and matches your Form 26AS and AIS. 6. 6 ### Model a premature exit before you lock in If you may need the money early, recompute the maturity at the card rate for the period actually run, less the bank's penalty, which is commonly 0.5% to 1%. That figure, not the contracted one, is your realistic return. ## Maturity value of ₹1,00,000 with quarterly compounding Maturity value of ₹1,00,000 with quarterly compounding Tenure At 6.5% At 7% At 7.5% 1 year ₹1,06,660 ₹1,07,186 ₹1,07,714 2 years ₹1,13,764 ₹1,14,888 ₹1,16,022 3 years ₹1,21,341 ₹1,23,144 ₹1,24,972 5 years ₹1,38,042 ₹1,41,478 ₹1,44,995 10 years ₹1,90,556 ₹2,00,160 ₹2,10,235 ## Worked example Deposit amount ₹5,00,000 Contracted rate 7.25% a year, cumulative Tenure 5 years, compounded quarterly - Quarterly rate = 0.0725 ÷ 4 = 0.018125 - Number of quarters = 4 × 5 = 20 - (1 + 0.018125)^20 = 1.4322606 - M = 5,00,000 × 1.4322606 = ₹7,16,130, so interest = ₹2,16,130 - Effective annual yield = (1.018125)^4 − 1 = 7.45% - The same deposit as a quarterly payout FD pays ₹9,063 every quarter, ₹1,81,250 over five years, which is ₹34,880 less than the cumulative version Maturity value = ₹7,16,130 on a ₹5,00,000 deposit, an effective yield of 7.45% ## Frequently asked questions How is FD maturity value calculated? For a cumulative deposit the formula is M = P × (1 + r ÷ n)^(n × t), with n = 4 because Indian banks compound term deposit interest quarterly. A ₹5,00,000 deposit at 7.25% for five years matures at ₹7,16,130, giving ₹2,16,130 of interest. Why is my FD return higher than the rate on the certificate? Because the quarterly compounding lifts the effective yield above the nominal rate. A nominal 7.25% compounded quarterly works out to an effective 7.45% a year, and a nominal 7.5% to an effective 7.71%. Compare competing deposits on effective yield rather than the advertised rate. When is TDS deducted on FD interest? The bank deducts TDS under section 393 of the Income-tax Act, 2025, which carries forward the old section 194A, once the interest it pays or credits you in a financial year crosses ₹50,000. For depositors aged 60 and above the threshold is ₹1,00,000, both limits as raised with effect from 1 April 2025. The rate is 10% where you have furnished a PAN and 20% where you have not. Does TDS mean my FD interest is fully taxed? No, the two are separate. TDS is an advance collection at 10%, while the interest itself is added to your total income and taxed at your slab rate, so a higher-slab depositor still has tax to pay and a non-taxable depositor can claim the TDS back as a refund. Report the interest in the year it accrues, and reconcile against Form 26AS and the AIS. Who can submit Form 15G or Form 15H? Form 15H is for resident depositors aged 60 and above, and Form 15G for other resident individuals and HUFs below 60, in each case only where the estimated total income for the year is below the taxable limit. Submitting it stops the bank deducting TDS. File it at the start of the financial year and separately with every bank and branch holding your deposits, because a false declaration carries penal consequences. What deduction can a senior citizen claim on FD interest? Section 153 of the Income-tax Act, 2025, which consolidates the old sections 80TTA and 80TTB, allows a deduction of up to ₹50,000 a year on interest from bank, post office and cooperative bank deposits. It is available only if you are taxed under the old regime, since deductions of this kind do not apply under the default new regime. How does a tax-saver FD differ from a normal fixed deposit? A five-year tax-saver FD qualifies for a deduction of up to ₹1,50,000 under section 123 of the Income-tax Act, 2025, read with Schedule XV, the successor to section 80C, but only under the old regime. It is locked in for the full five years with no premature withdrawal and no loan against it, and the interest it earns is fully taxable exactly like any other FD. ## Sources Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it. - [RBI Monetary Policy Statement, 2026-27](https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR3855508EB4A59FF46F9B57BBA200AA250B8.PDF) - [Income-tax Act, 2025, Income Tax Department](https://www.incometax.gov.in/iec/foportal/newdownloads/income-tax-act-2025) - [Senior and super senior citizens, Income Tax Department](https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-2) ## Stop re-keying these figures Aalekh runs this calculation on your actual client data, pulls the underlying ledgers straight from Tally, and carries the result through to the financial statements and the return. [Get Started](/page-pricing)[Book a demo](/page-contact) ## Related calculators - [ ### SIP Calculator Project what a monthly mutual fund SIP could grow to, and what tax applies when you redeem. 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