FD / RD Calculator
Compute fixed-deposit maturity value with quarterly compounding (the actual standard Indian banks use). Switch to RD mode for monthly recurring deposits.
Methodology. FD: A = P(1 + r/4)^(4n) — quarterly compounding (standard for Indian banks). RD: M = P × [(1+i)^n – 1]/(1–(1+i)^(–1/3)) — standard RD formula with quarterly compounding. Interest is taxable at slab rate (TDS @10% deducted by bank if interest exceeds ₹40K/year for non-seniors, ₹50K for seniors). Senior citizens get 0.5% rate boost at most banks.
How FD and RD maturity is calculated
Most Indian banks compound fixed-deposit interest quarterly: maturity = P × (1 + r/4)4t, where r is the annual rate and t the tenure in years. A recurring deposit applies the same quarterly compounding to each monthly instalment for the months it stays invested.
Worked examples (7% a year, 5 years)
| Deposit | You invest | Maturity value |
|---|---|---|
| FD of ₹5 lakh | ₹5,00,000 | ≈ ₹7,07,390 |
| RD of ₹10,000 a month | ₹6,00,000 | ≈ ₹7,19,300 |
Quarterly compounding makes 7% behave like an effective annual yield of about 7.19%. Senior citizens usually get 0.25–0.75% more.
Tax on FD and RD interest
- Interest is added to your income and taxed at your slab rate every year, even on cumulative deposits where you receive nothing until maturity.
- Banks deduct 10% TDS once interest from that bank crosses ₹50,000 in a year (₹1 lakh for senior citizens). If your total income is below the taxable limit, submit Form 15G/15H — see our Form 15G/15H guide.
- More detail, including how to report interest in your ITR, is in tax on FD interest.
FD or something else?
For money you need within 1–3 years, FDs are hard to beat for certainty. For longer horizons, after-tax FD returns often trail inflation for people in the 20–30% brackets. Our FD vs debt fund comparison covers the alternatives, including RBI Floating Rate Savings Bonds.
FAQs
Is FD money safe?
Deposits are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest together.
What if I break an FD early?
Banks usually pay the rate for the period actually held minus a penalty of 0.5–1%.
Monthly payout or cumulative?
Cumulative earns slightly more because interest compounds; payout options suit people who need regular income.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.