FD Calculator

How to use it

A fixed deposit (FD) is a lump sum you place with a bank or financial institution for a fixed term, in exchange for a fixed interest rate that doesn't change for the length of the deposit — unlike a mutual fund or stock investment, where returns move with the market. Use this calculator when you want to know exactly what a bank FD, term deposit, or certificate of deposit will be worth at maturity, before locking your money away. Banks almost always compound FD interest quarterly rather than annually, so this calculator uses the quarterly compounding formula: maturity amount = principal × (1 + rate/4)^(4 × years). Dividing the annual rate by 4 gives the interest credited each quarter, and raising it to the power of 4 times the number of years accounts for every quarter across the full tenure. Quarterly compounding produces a slightly higher maturity value than annual compounding at the same quoted rate, because interest starts earning interest sooner. For example, depositing $100,000 at a 7% annual rate for 5 years: the quarterly rate is 7% ÷ 4 = 1.75%, compounded over 4 × 5 = 20 quarters. (1 + 0.0175)^20 works out to about 1.4148, so the maturity value is $100,000 × 1.4148 ≈ $141,478. Your original $100,000 is returned in full at maturity, plus $41,478 in interest — noticeably more than the $35,000 you'd earn from simple, non-compounding interest at the same rate. FD calculators are used to compare interest rates across banks before locking money away for a fixed term, to check whether a longer tenure or a promotional rate is worth committing to, and to estimate post-tax returns once local tax on interest income is factored in. Because FDs offer a fixed, predictable rate with (in most countries) some form of deposit protection, they're a common choice for money you can't afford to risk, such as an emergency fund or a short-term savings goal — though the tradeoff is lower expected growth than market-linked investments like SIPs or lump-sum investing.

Frequently asked questions

How is FD maturity calculated?

Most banks compound FD interest quarterly rather than annually. This calculator uses that convention: maturity = principal × (1 + rate/4)^(4 × years), where the annual rate is divided by 4 for the quarterly rate and the exponent covers every quarter in the tenure. A few banks compound monthly or annually instead, so check your bank's specific terms if you need an exact figure.

Is FD interest taxable?

In most countries, yes — FD interest is added to your taxable income and taxed at your regular income tax rate, not a special lower rate. Some banks deduct tax at source before crediting interest. This calculator shows the pre-tax maturity amount and interest earned; your actual take-home return will be lower once local tax rules are applied.

Can I withdraw a fixed deposit before it matures?

Usually yes, but most banks charge a penalty for breaking an FD early — typically a reduction of 0.5–1 percentage points off the interest rate you'd otherwise have earned, applied for the time the deposit was actually held. Some tax-saving or special FD schemes don't allow early withdrawal at all. Check your bank's premature withdrawal terms before committing to a long tenure.

Is a fixed deposit better than a SIP?

They serve different purposes. An FD gives a fixed, guaranteed rate with no market risk, which suits money you need to preserve, like an emergency fund. A SIP invests in market-linked mutual funds, which carries risk but has historically outpaced FD rates over long periods of 10 years or more. Many people hold both — an FD for safety, a SIP for growth.