FD Calculator

Using A = P(1 + r/4)^(4t) for the common quarterly-compounding convention: principal times (1 + quarterly rate) to the power of total quarters. ₹5,00,000 at 7% for 5 years matures at about ₹7,07,389.

For cumulative FDs spanning multiple financial years, most banks credit and report interest annually (even though you receive it only at maturity), and it is taxed in the year it accrues — not deferred to maturity. Check your bank's TDS certificate (Form 16A) each year.

A cumulative FD reinvests interest each quarter and pays everything at maturity (this calculator models this type). A non-cumulative FD pays interest out monthly, quarterly or annually as income, with no compounding — better for those who need regular income rather than a lump sum.

Yes, but premature withdrawal usually costs a penalty of 0.5–1% on the interest rate, and you earn interest only for the period actually held, at the rate applicable to that shorter tenure — not your original quoted rate.

FDs offer a guaranteed, fixed rate with deposit insurance up to ₹5 lakh per bank; debt funds have market-linked, variable returns with no guarantee but potentially better post-tax outcomes for higher tax brackets, especially over 3+ years. Choose FDs for certainty and short horizons, debt funds for tax efficiency over longer ones.