FD formula
Maturity = P × (1 + r/n)^(n × t), where r is the yearly rate, n the compounding periods per year (4 for quarterly, which most Indian banks use) and t the tenure in years.
Example
₹1,00,000 at 7% for 12 months, compounded quarterly, grows to about ₹1,07,186. That is ₹7,186 interest, slightly more than 7% because interest is added every quarter.
Things to know
- FD interest is taxable at your slab rate, and banks deduct TDS above the yearly threshold.
- Senior citizens usually get an extra 0.25–0.50% from most banks.
- Breaking an FD early usually costs a penalty of around 0.5–1% on the rate.
Using it as a CD calculator
In the US and some other countries a fixed deposit is called a certificate of deposit (CD). The calculator shows a ₹ sign, but the maths is the same in any currency: enter the deposit, the CD's interest rate (not the APY), the term in months and the compounding, and read the results in dollars. If the bank only gives an APY, that already includes compounding: choose Yearly and enter the APY as the rate. For example, $10,000 at a 4.5% APY for 12 months matures at $10,450.