CZ
CalcyZone
Finance & Banking CalcyZone Calculator

FD Calculator (Fixed Deposit)

Calculate fixed deposit maturity with bank-style quarterly compounding, or the monthly/quarterly interest payout of a non-cumulative FD.

Maturity value
₹1,41,477.82
Interest earned
₹41,478
Effective annual yield
7.19%

Step-by-step working

  1. Quarterly rate = 7 / 400 = 0.017500
  2. Quarters = 5 × 4 = 20
  3. A = 1,00,000 × (1 + 0.017500)^20 = ₹1,41,477.82

Mathematical Formula

Cumulative: A = P × (1 + r/400)^(4t). Quarterly payout = P × r / 400. Monthly payout = quarterly interest ÷ [1 + (1 + r/1200) + (1 + r/1200)²] (quarterly interest discounted to a monthly amount).

Overview & Explanation

Indian banks compound term-deposit interest quarterly. Non-cumulative FDs pay interest out instead; monthly payouts are paid at a discounted value of the quarterly interest.

How It Works

  • Cumulative: interest is added every quarter and earns further interest.
  • Quarterly payout: one quarter’s simple interest is paid every 3 months.
  • Monthly payout: banks pay a monthly amount whose 3-month compounded value equals the quarterly interest.

Practical Applications

  • Comparing bank FD offers.
  • Planning a monthly income from savings.
  • Checking maturity before booking an FD.

Example 1: ₹1 lakh for 5 years at 7%, cumulative

Quarterly compounding.

1

Inputs

Deposit amount (₹): 100000 · Interest rate (% p.a.): 7 · Tenure (years): 5 · Interest option: Cumulative (reinvest, paid at maturity)

= entered
2

Step 1

Quarterly rate = 7 / 400 = 0.017500

3

Step 2

Quarters = 5 × 4 = 20

4

Step 3

A = 1,00,000 × (1 + 0.017500)^20 = ₹1,41,477.82

5

Maturity value

Result

= ₹1,41,477.82

Example 2: ₹10 lakh at 7.25%, monthly payout

Monthly income from a non-cumulative FD.

1

Inputs

Deposit amount (₹): 1000000 · Interest rate (% p.a.): 7.25 · Tenure (years): 3 · Interest option: Monthly payout

= entered
2

Step 1

Quarterly interest = 10,00,000 × 7.25 / 400 = ₹18,125

3

Step 2

Monthly = quarterly ÷ (1 + (1+i) + (1+i)²), i = 0.006042 → ₹6,005.31

4

Monthly interest payout

Result

= ₹6,005.31

How it's calculated & sources

Cumulative: A = P × (1 + r/400)^(4t). Quarterly payout = P × r / 400. Monthly payout = quarterly interest ÷ [1 + (1 + r/1200) + (1 + r/1200)²] (quarterly interest discounted to a monthly amount).

Frequently Asked Questions

How do banks compound FD interest?
Most Indian banks, including SBI, compound term deposit interest quarterly for deposits of 6 months and above.
Why is the monthly payout less than rate ÷ 12?
Interest is computed quarterly; paying it monthly means the bank pays earlier, so it pays a discounted amount.
Is FD interest taxable?
Yes. FD interest is taxed at your slab rate and banks deduct TDS above the threshold unless you submit Form 15G/15H where eligible.
Do senior citizens get more?
Usually 0.25–0.75 percentage points more. Enter the senior-citizen rate in the interest field.

Related Calculators

finance

RD Calculator (Recurring Deposit)

Calculate the maturity value of a bank recurring deposit with quarterly compounding.

Use Calculator
finance

Post Office MIS Calculator (Monthly Income Scheme)

Calculate the monthly income from the Post Office Monthly Income Scheme (POMIS) for any deposit.

Use Calculator
finance

SCSS Calculator (Senior Citizen Savings Scheme)

Calculate the quarterly interest from the Senior Citizens Savings Scheme (SCSS).

Use Calculator
finance

Mortgage and Loan Calculator

Calculate monthly mortgage payments, interest costs, and total repayment schedules.

Use Calculator