FD Calculator

Q: How is FD interest compounded?

Most Indian banks compound fixed deposit interest quarterly by default, though some offer monthly, half-yearly or annual compounding options.

Q: Is FD interest taxable?

Yes, interest earned on a fixed deposit is added to your taxable income and taxed at your applicable income tax slab rate; banks also deduct TDS above a threshold.

Find out what a fixed deposit will be worth at maturity, based on principal, interest rate, tenure and compounding frequency.

Deposit details

Deposit amount ₹1,00,000

Interest rate (annual) 7%

Tenure (years) 5 yrs

Compounding frequency

Maturity value

Amount at maturity

₹0

Principal₹0

Interest earned₹0

Interest earned is added to your taxable income and taxed at your slab rate; TDS may apply above the threshold.

How FD maturity is calculated

A fixed deposit earns compound interest, meaning interest is periodically added to the principal and starts earning interest itself. The more frequently interest compounds, the slightly higher the effective return for the same stated rate.

A = P × (1 + r/n)^(n×t)
P = principal, r = annual interest rate ÷ 100, n = compounding frequency per year, t = tenure in years

Frequently asked

How is FD interest compounded?

Most banks compound quarterly by default, though monthly, half-yearly and annual options are also common depending on the bank and deposit scheme.

Is FD interest taxable?

Yes — it's added to your total income and taxed at your slab rate. Banks deduct TDS once interest crosses the prescribed threshold in a year.

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Figures are estimates for planning purposes only and do not constitute financial advice.