Enter your deposit amount, rate and tenure. Results update in real time as you adjust the sliders. Quarterly compounding is the Indian bank standard.
Most Indian banks compound FD interest quarterly.
| Year | Deposit | Interest (Year) | Value |
|---|
Same deposit, rate and tenure - only the compounding frequency changes.
| Frequency | Maturity Value | vs Yearly |
|---|
How is FD interest calculated?
FD maturity uses compound interest: A = P x (1 + r/n)^(n x t), where P is the deposit, r the annual rate, n the compounding frequency and t the tenure in years. Indian banks compound quarterly (n = 4) by default, so a Rs 5 lakh FD at 7% for 5 years matures to about Rs 7.07 lakh.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, yearly - not just at maturity. Banks deduct TDS at 10% when interest crosses Rs 40,000 per year (Rs 50,000 for senior citizens) with PAN on file, and 20% without PAN. Submit Form 15G/15H if your total income is below the taxable limit.
Do senior citizens get higher FD rates?
Yes - most Indian banks pay about 0.50% extra to senior citizens (60+), and many add more for super seniors (80+). A 7.0% standard rate typically becomes 7.5%. Add the extra 0.50% in the rate field above to see the senior citizen maturity.
What happens if I break my FD early?
Premature withdrawal attracts a penalty of about 0.50% to 1.00%, and interest is paid at the rate for the period the money actually stayed booked. Some banks offer sweep-in FDs linked to savings accounts that avoid the penalty while keeping liquidity.
Which compounding gives the best returns?
More frequent compounding matures higher. On Rs 5 lakh at 7% for 5 years: yearly gives about Rs 7.01 lakh, quarterly (the Indian standard) about Rs 7.07 lakh, monthly about Rs 7.09 lakh. The compounding comparison table above shows the exact figures for your inputs.
Calculations assume a constant rate for the full tenure. Actual FD rates vary by bank, tenure and depositor age; premature withdrawal penalties may apply. This tool is for information only and is not financial advice.