How is Fixed Deposit (FD) interest calculated?

Bank fixed deposit interest is typically compounded quarterly. The maturity value formula is A = P × (1 + r/n)^(n×t), where P is principal, r is annual interest rate, n is compounding frequency per year (4 for quarterly), and t is duration in years.

Is FD interest subject to TDS?

Yes, banks deduct TDS at 10% on FD interest if total interest exceeds ₹40,000 per financial year (₹50,000 for senior citizens). If PAN is not provided, TDS is deducted at 20%.

What is Tax Saver FD?

Tax Saver Fixed Deposits have a mandatory 5-year lock-in period and qualify for Section 80C tax deduction up to ₹1,50,000 per financial year.

Fixed Deposit (FD) Calculator 2026

Calculate quarterly compounded bank FD interest earnings, cumulative maturity amount, and TDS deductions

FD Deposit Amount

₹

Quick Presets:

₹1,000₹1.00 Cr

FD Annual Interest Rate (%)

3%12%

Time period

Yrs

1 Yr10 Yrs

Your money becomes

1.4×

of what you put in over 5 years.

Final value₹1.41 L

Invested vs Interest

Total invested

₹1.00 L

Interest earned

₹41,478

Interest is 29.3% of final value

Year-by-year breakdown

Year	Total contributed	Interest earned	Value
1	₹1.00 L	₹7,186	₹1.07 L
2	₹1.00 L	₹7,702	₹1.15 L
3	₹1.00 L	₹8,256	₹1.23 L
4	₹1.00 L	₹8,849	₹1.32 L
5	₹1.00 L	₹9,485	₹1.41 L

Growth over time

The gap between the two lines is the interest earned — and it widens every year.

Fixed Deposit (FD) Calculator FAQs

Most Indian commercial banks compound fixed deposit interest on a quarterly basis (4 times a year) according to RBI guidelines, using the formula: A = P × (1 + r/4)^(4n).

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