Quick answer
How much will my FD give at maturity?
An FD of ₹1 lakh at 7% for 5 years with quarterly compounding matures at about ₹1,41,478, earning ₹41,478 in interest. For a recurring deposit, ₹5,000 a month for 12 months at 7% matures at about ₹62,311 on ₹60,000 deposited.
- FD formula: P × (1 + r/4)4t
- RD: each monthly instalment compounds quarterly until maturity
- Tax: interest is taxed at your slab; 10% TDS above ₹50,000 a year
What is the difference between an FD and an RD?
A fixed deposit takes one lump sum for a fixed period. A recurring deposit takes a fixed amount every month, which suits people saving from a monthly salary. Both pay a fixed rate decided when you open them.
How is FD maturity calculated? A worked example
Take ₹1 lakh in a fixed deposit at 7% for 5 years. Most Indian banks add interest every quarter, so the rate is split into four (1.75%) and applied 20 times. The FD matures at about ₹1,41,478, earning ₹41,478 in interest.
The compounding frequency makes a small difference over the same 5 years:
| Interest added | Maturity amount |
|---|---|
| Yearly | ₹1,40,255 |
| Quarterly (used here) | ₹1,41,478 |
| Monthly | ₹1,41,763 |
Deposits shorter than 6 months earn simple interest, as banks pay it. ₹1 lakh for 3 months at 7% returns ₹1,01,750.
What affects your FD and RD maturity amount?
- Interest rate: ₹1 lakh for 5 years grows to about ₹1,44,995 at 7.5%, against ₹1,41,478 at 7%
- Senior citizen rates: tick the box to add 0.5%, so a 7% deposit is worked out at 7.5%
- Tenure: the longer the money stays, the more interest earns interest. ₹5,000 a month in an RD for 3 years at 7% matures at about ₹2,00,686 on ₹1,80,000 deposited
- Tax: interest is taxed at your slab rate, so your real return is lower than the maturity figure suggests
Frequently asked questions
How is FD interest calculated?
Most Indian banks compound FD interest quarterly: maturity = P × (1 + r/4)^(4 × years). ₹1 lakh at 7% for 5 years grows to about ₹1,41,478.
How is RD maturity calculated?
Each monthly instalment earns quarterly compounded interest for the time it stays deposited. ₹5,000 a month for 12 months at 7% matures at about ₹62,311.
Is FD interest taxable?
Yes. FD and RD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS when interest from a bank crosses ₹50,000 a year (₹1 lakh for senior citizens).
Do senior citizens get a higher FD rate?
Most banks pay senior citizens an extra 0.25% to 0.75%, commonly 0.5%. Tick the senior citizen box to add 0.5%.
What is the difference between a cumulative and a non-cumulative FD?
A cumulative FD adds interest back to the deposit, so it compounds and is paid at maturity, which is what this calculator shows. A non-cumulative FD pays interest out every month or quarter, so it doesn’t compound and the total interest is lower.
Can I break an FD before maturity?
Yes, most banks allow premature withdrawal. They usually pay a lower rate for the time the money stayed and may deduct a penalty, so check your bank’s terms first.