Fixed deposit calculator

Compound interest on a fixed deposit follows A = P × (1 + r/n)^n×t, where P is the principal, r is the nominal annual rate, n is the compounding frequency per year, and t is the tenure in years. Substituting your inputs — P ≈ ₹3,00,000, r ≈ 6%, n = 1, t = 5 years — and working through the exponent lands on the ₹4,01,468 maturity figure used throughout this page. Interest is simply maturity minus principal: ₹1,01,468.

More frequent compounding (quarterly instead of annually, for example) very slightly raises maturity for the same nominal rate, because interest starts earning interest sooner within each year — the frequency comparison later on this page shows the size of that effect for your numbers.

Most Indian banks quote FD rates as an annualised percentage but compound quarterly by internal convention, which is why the effective yield you actually earn can be marginally higher than the headline rate printed on the rate card — always check the specific compounding convention in the FD receipt or scheme document rather than assuming annual compounding matches the bank’s actual methodology.

• Principal: ₹3,00,000
• Interest (illustrative): ₹1,01,468
• Maturity: ₹4,01,468

This calculator models a cumulative FD, where interest compounds and is paid out entirely at maturity along with the principal — the ₹4,01,468 figure above. Many banks and NBFCs also offer a non-cumulative FD, which pays interest out periodically (monthly, quarterly, or annually) instead of letting it compound inside the deposit.

For the same nominal rate and tenure, a cumulative FD usually produces a slightly higher total value than the sum of payouts from a non-cumulative FD, because compounding keeps working on interest that would otherwise have been paid out early. Choose based on whether you need the cash flow now or can let it compound.

Fixed deposits are a common core holding for retirees who prioritise capital safety and predictable income, for anyone parking an emergency fund who wants a return better than a savings account without taking on market risk, and for short-to-medium-term goals (1–5 years) where the timeline is too short to comfortably ride out equity market volatility. They are less suited as the sole vehicle for long-term wealth building, where inflation can erode the real value of a purely fixed-rate return over decades.

Most banks allow premature withdrawal of an FD before maturity, typically at a penalty — commonly a reduction of 0.5–1 percentage point on the interest rate applicable for the period actually held, rather than the original quoted rate. Some tax-saver FDs (5-year lock-in, eligible for Section 80C under the old regime) do not allow premature withdrawal at all except in specific circumstances like the depositor’s death.

At maturity, you can typically choose to withdraw the full amount, renew principal and interest together, or renew only the principal while the interest is paid out — decide based on whether rates have moved since you booked the deposit and whether you still need the money locked away.

Some banks also offer a partial withdrawal facility on cumulative FDs — letting you take out a portion of the deposit while the remainder continues to earn interest at the original rate, rather than forcing you to break the entire deposit for a smaller cash need. Ask specifically about this option if liquidity is a concern.

Interest earned on a fixed deposit is fully taxable at your income tax slab rate — it is not a flat, lower rate like some market-linked long-term gains. Banks deduct TDS (tax deducted at source) once your interest income from that bank crosses a threshold in a financial year (a higher threshold typically applies for senior citizens). TDS is not the final tax — you still report the full interest as income and settle any balance (or claim a refund) when you file your return, especially if your total income falls in a lower slab than the TDS rate deducted.

If your total income is below the taxable threshold, you can typically submit Form 15G (or Form 15H if a senior citizen) to your bank to request that TDS not be deducted at all — this does not exempt the interest from tax if your income actually crosses the threshold later, so use it only if you are genuinely confident you owe no tax that year.

• Compare rate cards across a few banks and NBFCs for your exact tenure — the best rate for a 1-year deposit is not always offered by the same institution as the best rate for a 5-year deposit.
• Check whether the deposit is with a scheduled commercial bank, a small finance bank, or an NBFC — insurance cover and risk profile differ, even though NBFC rates can look more attractive.
• Decide cumulative vs non-cumulative upfront based on whether you need periodic payouts.
• Most banks let you book an FD instantly online from an existing savings account — no separate paperwork is usually needed if you are already a customer.
• Set a calendar reminder a few weeks before maturity so you can actively choose to renew, redirect, or withdraw rather than letting it auto-renew at a rate you have not checked.

Most Indian banks offer a preferential rate — commonly 0.25–0.75 percentage points higher — on FDs booked by senior citizens (typically age 60+), and some extend a further premium for “super senior” citizens (often 80+). If you are booking an FD for a parent or senior family member, always ask specifically about the senior citizen rate card rather than assuming the general public rate shown on a rate sheet applies.

• Booking one large FD instead of laddering several smaller FDs across different maturities, which limits your ability to access cash without breaking the whole deposit.
• Ignoring TDS and slab taxation, then being surprised that the “return” you actually keep is lower than the quoted rate.
• Not comparing small finance banks and NBFCs (within safe deposit-insurance limits) against large public and private banks — rate differences of 0.5–1.5 percentage points are common.
• Forgetting to submit Form 15G/15H when genuinely eligible, resulting in unnecessary TDS that then has to be claimed back as a refund.
• Choosing tenure without checking the bank’s specific rate slab — rates are not always monotonically higher for longer tenures; some mid-length tenures occasionally carry the best card rate.
• Assuming deposit insurance covers the full amount — India’s DICGC cover has a fixed per-depositor, per-bank limit; amounts above that are not insured.
• Letting an FD auto-renew year after year without re-checking the rate — banks do not proactively call to tell you a better rate is now available elsewhere.
• Overlooking the tax-saver FD’s 5-year lock-in when the goal is actually short-term — the Section 80C benefit (old regime only) is not worth an FD you cannot touch if you need the money sooner.

None of this makes FDs a poor choice — for capital that must be there on a specific date, with zero tolerance for drawdown, a fixed deposit remains one of the most straightforward instruments available to Indian savers. The trade-off is simply that certainty has a cost: you give up the higher long-run growth potential of market-linked options in exchange for knowing exactly what you will have at maturity.

The tables below hold two of the three levers — principal, rate, and tenure — fixed at your entered values and vary the third, so you can see exactly which lever moves maturity the most for your specific numbers rather than relying on a generic rule of thumb.

Different tenures

Different principal amounts (±15–25%)

For perspective only, an illustrative mutual fund SIP path (12% assumption, not a prediction) with a monthly amount near ₹5,000 could produce a very different risk/return profile than FD compounding — estimated SIP corpus illustration near ₹4,12,432 over the same5 years. This is not advice; it explains why “FD vs SIP” is about goals and risk tolerance, not just the bigger number.

If your real question is “how much do I need to deposit to reach a specific maturity figure?” rather than “what will ₹3,00,000 become?”, it helps to work backwards. At the same 6% rate, 5-year tenure, and 1-times-yearly compounding used elsewhere on this page, reaching a round target of about ₹8,00,000 would need a principal of roughly ₹5,98,000 — useful if you are sizing a deposit around a known future expense like a wedding, a down payment, or a child’s education fee due in 5 years.

This reverse approach is often more practical than picking an arbitrary deposit size and hoping it grows enough — start from the rupee amount you actually need on a known future date, then size the FD (or combination of FDs) to reach it.

A fixed deposit is one of several fixed-income options available to Indian savers. Here is a broad-strokes comparison to help you place it alongside the alternatives:

FDs sit in the middle of this group on flexibility — shorter and more liquid than PPF, but without PPF’s tax-exempt status on interest. If you want monthly income rather than a lump-sum maturity, compare this page against EasyCal’s Post Office MIS calculator using a similar principal.

Instead of parking ₹3,00,000 in a single 5-year FD, many savers split the amount across several FDs with staggered maturities — for example, a quarter maturing each year for four years, then reinvesting each maturing slice into a fresh long-tenure FD. This “laddering” approach gives you periodic access to a portion of your money without ever needing to break a deposit early and pay the premature-withdrawal penalty, while still capturing longer-tenure rates on the bulk of your savings.

Laddering also reduces reinvestment risk — instead of your entire corpus maturing at once (potentially into a lower-rate environment), only a fraction resets at any given time, smoothing out the effect of rate cycles on your overall portfolio.