FD maturity formula
A = P × (1 + r / n)n × t
- P = deposit amount
- r = annual interest rate (for example 7% = 0.07)
- n = compounding periods per year (quarterly = 4)
- t = tenure in years
Example
₹5 lakh for 3 years at 7%, compounded quarterly, matures to about ₹6,15,720. That's roughly ₹1.16 lakh of interest.
Tips for fixed deposits
- Senior citizens usually get 0.25%–0.50% extra. Enter the higher rate if that applies.
- Laddering: split money into FDs with different end dates so some cash is always coming free.
- Small finance banks often pay more. Deposits up to ₹5 lakh per bank are insured by DICGC.
- Tax: FD interest is taxed at your slab rate. Submit Form 15G/15H to avoid TDS if your income is below the taxable limit.
Frequently asked questions
Is FD interest taxable?
Yes. It's added to your income and taxed at your slab rate. Banks may deduct TDS if interest crosses the yearly threshold.
Can I break an FD early?
Usually yes, but banks charge a penalty, typically 0.5%–1% less interest. Tax-saver FDs have a 5-year lock-in and can't be broken early.
Estimates only. Your bank's figure may differ slightly due to day-count conventions and rounding.