The Real Problem This Solves
Bank staff quote the headline FD rate but rarely explain how quarterly compounding changes your actual maturity, or that the interest is taxable.
This calculator gives you the precise maturity figure so you can compare FDs fairly.
How FD Maturity Is Calculated
Most banks compound FD interest quarterly: P × (1 + r/4)^(4×years). Quarterly compounding earns slightly more than simple interest on the same rate.
Example: Rahul deposits ₹1 lakh at 7% for 5 years. With quarterly compounding, his maturity is about ₹1,41,478, earning ₹41,478 in interest. A senior citizen getting 7.5% on the same FD would earn around ₹44,995.
| Deposit | Rate | Tenure | Maturity |
|---|---|---|---|
| ₹1,00,000 | 7% | 5 years | ₹1,41,478 |
| ₹1,00,000 | 7.5% (senior) | 5 years | ₹1,44,995 |
| ₹5,00,000 | 7% | 5 years | ₹7,07,389 |
Frequently Asked Questions
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Since April 2025, TDS applies if interest exceeds ₹50,000 per year (₹1 lakh for senior citizens).
Do senior citizens get higher FD rates?
Yes, most banks offer senior citizens an extra 0.25%-0.50% interest over the standard rate.
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Compared your FD returns?
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