Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 8 April 2026·Methodology
Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.
FD Calculator
Will this FD actually grow your money after tax and inflation? See the maturity amount, what drives it, and whether a better alternative exists for your horizon.
FD details
Lump sum or recurring — pick your mode and see the maturity amount with quarterly compounding.
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Maturity amount
₹7.2L
₹7.16L at maturity
At 7.25% with 4x yearly compounding over 5 years, your lump sum compound to ₹7.16L.
Remember that FD interest is fully taxable — post-tax returns can be 2-3% lower than the headline rate.
Principal
₹5L
Interest earned
₹2.2L
Maturity amount
₹7.2L
Effective rate
7.3%
FD balance over time
Year-end balance as interest compounds.
Benchmarks
Shop around (+1% rate)
-4.8%You
₹7.2L
Benchmark
₹7.5L
Small finance banks often offer 0.5-1% more for the same tenure.
Lock in 3 more years
-19.4%You
₹7.2L
Benchmark
₹8.9L
Longer tenure compounds more interest but reduces liquidity.
Monthly compounding
-0.2%You
₹7.2L
Benchmark
₹7.2L
Some banks offer monthly instead of quarterly compounding.
What moves the result most
Holding everything else fixed, here is how the headline shifts when each input swings by a typical range.
Interest above ₹40k/year triggers TDS
Banks deduct TDS at 10% when annual FD interest crosses ₹40k (₹50k for seniors). Submit Form 15G/15H if your total income is below the taxable limit to avoid deduction.
Next best actions
The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.
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At a glance
- What it does
- Computes the maturity amount of a Fixed Deposit (lump sum or recurring) at the stated rate with quarterly compounding.
- Current rates
- Most Indian banks offer 6.5-7.5% on regular FDs in 2026; senior citizens get a 0.5% bonus on top.
- Typical output
- ₹5L lump sum at 7% for 5 years becomes ~₹7.07L at maturity — ₹2.07L in interest.
- Best used for
- Parking capital you'll need within 5 years, building the debt floor of a portfolio, or matching specific future expenses.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Lump sum maturity = Principal × (1 + r/n)^(n × years), where r is the annual rate and n is the compounding frequency.
- Recurring deposit maturity compounds each monthly installment for its remaining tenure.
- Senior citizen bonus adds 0.5% to the headline rate.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Indian banks typically compound FD interest quarterly (n = 4).
- TDS and taxation of interest are not deducted from the maturity amount.
- Bank-specific rate slabs (e.g., sub-₹2Cr vs bulk deposits) are not modelled.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Is FD interest tax-free?
No — FD interest is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% when annual interest exceeds ₹40k (₹50k for seniors). PPF and ELSS offer tax-free alternatives.
What's the difference between an FD and an RD?
A Fixed Deposit (FD) takes a lump sum. A Recurring Deposit (RD) takes monthly installments. This calculator supports both modes — use the toggle above.
Should I choose monthly or quarterly compounding?
More frequent compounding gives marginally more interest. Most Indian banks use quarterly compounding by default, which is what this tool assumes.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
What to do next
Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.
Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.
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