Interest Earned
$10.96
Maturity Amount
$10,010.96
How it works
The Fixed Deposit Calculator computes the maturity amount and interest earned on a fixed deposit (FD) — also known as a term deposit or certificate of deposit (CD) — given the principal, annual interest rate, tenure, and compounding frequency. Used extensively in India, the UK, and globally.
Fixed deposits are one of the most popular guaranteed-return investment instruments. Indian banks offer FDs at 6.5–7.5% p.a.; US CDs offer 4.5–5.5% APY (2024); UK fixed-rate bonds offer 4.5–5% p.a. The maturity amount calculation accounts for compounding, TDS (Tax Deducted at Source) for Indian FDs, and quarterly vs. monthly vs. annual compounding differences.
How to use it: enter the principal, annual interest rate, tenure (in months or years), and compounding frequency (for Indian bank FDs: quarterly is standard). The calculator returns the maturity amount, total interest earned, and effective annual yield. For Indian FDs, enable TDS to deduct 10% tax at source on interest above ₹40,000/year.
Quarterly compounding: Indian banks compound FD interest quarterly by default. A 7% annual rate with quarterly compounding produces an effective yield of 7.186% — not 7%. This is why FDs advertise both the interest rate and the effective annual yield.
TDS threshold (India): interest above ₹40,000/year (₹50,000 for senior citizens) is subject to 10% TDS. The calculator shows the post-TDS effective return for Indian FD investors.
Renewal: many FDs auto-renew at the prevailing rate at maturity. Model multiple renewal cycles to project long-term growth.
Privacy: FD calculations run in the browser.
Frequently Asked Questions
- Cumulative FD: interest is compounded and added to the principal. No interest is paid out periodically. The full maturity amount (principal + all compounded interest) is paid at the end of the tenure. Non-cumulative FD: interest is paid out monthly, quarterly, half-yearly, or annually. The principal remains intact. Non-cumulative FDs are popular among retirees who need regular income.
- Tax-saving FDs have a 5-year lock-in period and qualify for Section 80C deduction (up to ₹1,50,000/year). The interest is taxable (unlike PPF), but the principal investment reduces taxable income. They have no premature withdrawal option. Interest is taxed at slab rates, and TDS is deducted at 10% if interest exceeds ₹40,000/year.
- TDS (Tax Deducted at Source) on FD interest is deducted at 10% when total interest from all FDs with a bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). TDS is deducted at the time of interest credit, not at maturity. If your total income is below the taxable limit, submit Form 15G (below 60) or 15H (60+) to the bank to avoid TDS deduction.
- Compare effective annual yield (EAY), not the stated interest rate. A bank offering 7% p.a. compounded quarterly has an EAY of 7.186%, while a bank offering 6.9% compounded monthly has an EAY of 7.122%. The quarterly-compounding bank offers slightly more despite the lower stated rate. Use the effective interest rate calculator to normalize comparisons.