Fixed Deposit (FD) Interest Calculator

Calculate the maturity amount and total interest earned on your fixed deposit. Enter principal, interest rate, tenure, and compounding frequency for precise results.

Principal Amount

Annual Interest Rate (%)

Tenure

Type

Compounding Frequency

Results

Enter values and click Calculate to see results

How to Calculate Fixed Deposit Interest

Step 1: Enter your principal deposit amount and the annual interest rate offered by your bank.

Step 2: Select your tenure (in years or months) and compounding frequency (monthly, quarterly, semi-annually, or annually).

Step 3: Click Calculate to see your maturity amount, total interest earned, and effective annual rate.

Understanding Fixed Deposits and Compound Interest

What Is a Fixed Deposit

A fixed deposit (FD) is a savings instrument where you deposit money for a fixed period at a guaranteed interest rate. Banks pay higher rates than regular savings accounts because you agree not to withdraw the money until maturity. FDs are low-risk and ideal for conservative investors or short-term goals.

How Compound Interest Works in FDs

Compound interest means you earn interest on your interest. The frequency matters:

Monthly Compounding

Interest is calculated and added every month. Best for maximizing returns. A 6% FD compounded monthly gives 6.17% effective rate.

Quarterly Compounding

Most common for FDs. Interest is added every 3 months. A 6% FD compounded quarterly gives 6.14% effective rate.

The FD Maturity Formula

A = P × (1 + r/n)^(n×t). P is principal, r is annual rate (as decimal), n is compounding frequency per year, t is time in years. For $10,000 at 6% for 5 years compounded quarterly: A = 10000 × (1 + 0.06/4)^(4×5) = $13,468.

Fixed Deposit Interest Rates Reference

Institution Type	Typical Rate Range	Best For
Large national banks	3-5%	Safety, convenience
Regional banks	4-6%	Better rates, local service
Credit unions	4-6%	Member benefits, competitive rates
Online banks	5-7%	Highest rates, no branches
Post office FDs	5-7%	Government backing, tax benefits
Corporate FDs	7-9%	Higher returns, higher risk

Rates vary by country, tenure, and deposit amount. Longer tenures typically offer higher rates. Senior citizens often get 0.25-0.50% extra.

Compounding Frequency Comparison

Example: $10,000 at 6% for 5 Years

Compounding	Effective Rate	Maturity Amount	Interest Earned
Annually	6.00%	$13,382	$3,382
Semi-Annually	6.09%	$13,439	$3,439
Quarterly	6.14%	$13,468	$3,468
Monthly	6.17%	$13,488	$3,488

More frequent compounding gives slightly higher returns. Monthly vs annually makes a $106 difference on $10,000 over 5 years.

Frequently Asked Questions

How is FD interest calculated?

FD interest uses compound interest formula: A = P(1 + r/n)^(nt). Most banks compound quarterly. For simple interest FDs (rare), use I = P × r × t. Compound interest always gives higher returns over time.

Is FD interest taxable?

Yes, FD interest is taxable as income. Banks deduct TDS (tax deducted at source) if interest exceeds threshold limits. Tax-saving FDs (5-year lock-in) offer deduction under Section 80C in India up to $1,500.

Can I withdraw FD before maturity?

Yes, but with penalties. Banks typically charge 0.5-1% lower interest on premature withdrawals. Some banks allow partial withdrawals. Tax-saving FDs cannot be broken before 5 years.

What happens to FD on maturity?

Banks either credit the amount to your linked account or auto-renew the FD at prevailing rates. Auto-renewal is convenient but you might miss better rates elsewhere. Set maturity instructions when opening the FD.

Are fixed deposits safe?

Bank FDs are very safe. In the US, FDIC insures up to $250,000. In India, DICGC insures up to ₹5 lakh per bank. Corporate FDs carry higher risk but offer better rates. Diversify across banks for large amounts.

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