Fixed Deposit (FD) Calculator
Free online Fixed Deposit (FD) calculator. Calculate quarterly compounded bank FD interest, maturity amount, and senior citizen rates across Indian commercial banks with ATS.
Key takeaways
- Commercial banks in India compound fixed deposit interest on a quarterly basis.
- Formula: A = P × [1 + (r / 400)]^(4 × t), where r is the annual rate and t is tenure in years.
- Senior citizens (age 60+) typically receive an additional 0.50% interest buffer across banks.
- FDs under ₹5 lakh per bank are insured by the DICGC (RBI subsidiary).
About the Fixed Deposit (FD) Calculator
A Fixed Deposit (FD) is one of the most trusted and widely used low-risk investment vehicles in India. When you open an FD, you lock in a specific sum of money for a fixed tenure at a guaranteed interest rate unaffected by stock market volatility.
In the Indian banking system, FD interest does not compound annually or simply — commercial banks compound term deposits quarterly (every 3 months). This quarterly compounding slightly enhances your effective annual yield above the headline nominal rate.
The ATS FD Calculator implements this exact quarterly compounding formula used by major Indian lenders (SBI, HDFC Bank, ICICI Bank, Axis Bank), letting you compare guaranteed returns before locking in capital.
| Investor Category | TDS Exemption Threshold | Tax Treatment |
|---|---|---|
| Regular Investors (< 60 yrs) | ₹40,000 per financial year | Taxed at applicable slab rate; 10% TDS above ₹40,000 |
| Senior Citizens (60+ yrs) | ₹50,000 per financial year (§80TTB) | Exempt up to ₹50,000 under Section 80TTB; slab rate thereafter |
| 5-Year Tax Saving FD | Lock-in of 5 years | Eligible for Section 80C deduction up to ₹1.5 Lakh; interest is taxable |
Worked example
- Deposit (P) = ₹1,00,000 | Rate (r) = 7.00% p.a. | Tenure (t) = 5 Years.
- Quarterly compounding periods = 4 × 5 = 20 quarters.
- Maturity Amount (A) = 1,00,000 × (1 + 7/400)^20 = ₹1,41,478.
- Total interest earned = ₹41,478 over 5 years.
- Effective annual yield = 8.30% per year.
Frequently Asked Questions
What is an FD calculator?
An FD calculator is a free financial tool that calculates the maturity amount and interest earned on a bank fixed deposit based on the deposit amount, interest rate, and duration.
How is FD interest calculated in India?
Indian banks calculate FD interest using quarterly compounding: A = P × [1 + (r / 400)]^(4 × t), where P is principal, r is annual interest rate, and t is tenure in years.
Are bank fixed deposits safe?
Yes. Bank deposits up to ₹5,00,000 (including principal and interest) per depositor per bank are fully insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary.
What is a Tax-Saving FD?
A Tax-Saving FD has a mandatory lock-in period of 5 years and qualifies for tax deduction under Section 80C of the Income Tax Act up to ₹1.5 lakh per financial year. However, the interest earned remains taxable.
Can I withdraw an FD before maturity?
Yes, premature withdrawal is usually permitted by banks, but it typically attracts a penalty of 0.5% to 1.0% on the applicable interest rate.
Do senior citizens get higher FD interest rates?
Yes. Most banks in India offer senior citizens (aged 60 and above) an extra 0.50% interest rate over regular card rates.