₹1,00,000
₹0
₹0
| Year | Opening | Interest | Closing |
|---|
💡 The reinvestment insight: The most valuable thing your FD maturity can "buy" is another FD — or an equity mutual fund. Compounding means your ₹44,995 in interest can now earn its own interest. This is how wealth compounds across generations.
Type the amount you want to invest in the FD — e.g. ₹50,000, ₹1,00,000, or ₹5,00,000. There is no upper limit in the calculator.
Enter the annual interest rate offered by your bank (e.g. 7.0%, 7.5%, 8.0%). You can compare different rates by adjusting the slider.
Select the FD duration in months or years. Common tenures: 1 year, 2 years, 3 years, 5 years. Banks often offer better rates for specific tenures — check before locking in.
Choose how often interest compounds: Monthly, Quarterly (most common for Indian FDs), Half-yearly, or Annually. More frequent compounding = higher effective yield.
See principal, interest earned, maturity amount, effective annual yield, year-by-year growth chart, tax deduction (TDS), and the "What Can You Buy?" panel that puts your returns in perspective.
| Interest Rate | Maturity Amount | Interest Earned | Gain % | Typical Bank |
|---|---|---|---|---|
| 6.0% p.a. | ₹1,34,686 | +₹34,686 | 34.7% | Large PSU banks |
| 6.5% p.a. | ₹1,37,851 | +₹37,851 | 37.9% | SBI, Bank of Baroda |
| 7.0% p.a. | ₹1,41,478 | +₹41,478 | 41.5% | HDFC Bank, Axis Bank |
| 7.5% p.a. | ₹1,44,995 | +₹44,995 | 45.0% | ICICI Bank, Kotak |
| 8.0% p.a. | ₹1,48,886 | +₹48,886 | 48.9% | Small Finance Banks |
| 8.5% p.a. | ₹1,51,742 | +₹51,742 | 51.7% | Ujjivan, Jana SFB |
| 9.0% p.a. | ₹1,55,717 | +₹55,717 | 55.7% | NBFC / Corporate FD |
⚠️ Higher rates from NBFCs and small finance banks carry higher risk. Only invest amounts within DICGC insurance coverage (₹5 lakh per bank per depositor) for capital protection.
Rates are indicative and subject to change. Always check the official bank website for current rates before investing.
Instead of one big FD, split into 3–5 FDs maturing at different intervals (1yr, 2yr, 3yr, 5yr). When each matures, reinvest at the best rate available — ensures liquidity without penalty.
Most banks offer 0.25–0.75% extra interest for customers aged 60+. If investing for a parent or grandparent, book the FD in their name for significantly higher effective returns.
Banks deduct 10% TDS if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below the tax slab to avoid TDS deduction.
Set an auto-renew reminder 30 days before maturity. Don't let FD auto-renew at default rates — shop around and move to the bank offering the best rate at that time.
Bank deposits are insured up to ₹5 lakh per bank per depositor by DICGC. If investing more than ₹5 lakh, spread across multiple banks — not multiple branches of the same bank.
Quarterly compounding gives a higher effective yield than annual. For a 7.5% nominal rate: annual compounding yields 7.5%, quarterly yields 7.71%. Always prefer quarterly compounding.
I = P × R × T / 100
P = Principal, R = Rate %, T = Years
Maturity = P + I
A = P × (1 + R/N)^(N×T)
N = Compounding times/year
Quarterly: N = 4
Interest = A − P
EAR = (1 + R/N)^N − 1
7.5% quarterly compounding:
EAR = (1 + 0.075/4)^4 − 1
= 7.713%
Net = Maturity − Tax
Tax = Interest × Slab Rate
For 20% slab: keep 80%
of interest earned