FD (Fixed Deposit) Calculator
Calculate bank fixed deposit maturity value with quarterly compounding
How Does It Work?
Calculate interest earnings on bank fixed deposits across Indian banks (SBI, HDFC, ICICI, etc.) with standard quarterly compounding frequency.
Where A is maturity amount, P is principal deposit, r is annual interest rate, and t is tenure in years with standard quarterly compounding (n=4).
Real-World Worked Example
Depositing ₹2,00,000 in a 3-year commercial bank Fixed Deposit at 7.1% per annum with standard quarterly compounding.
- •Quarterly Interest Rate: 7.1% / 4 = 1.775%
- •Total Quarters: 3 years × 4 = 12 compounding cycles
- •Maturity Amount: ₹2,00,000 × (1 + 0.01775)¹² = ₹2,46,990
- •Total Interest Earned: ₹46,990 (Effective Annual Yield: 7.29% p.a.)
Takeaway: Quarterly compounding produces ₹4,390 more interest than simple interest. Interest exceeding ₹40,000 in a financial year is subject to 10% TDS.
Related Guides & Calculation Deep Dives
All guidesFD vs RD: Differences and When to Use Each
A Fixed Deposit (FD) requires a one-time lump-sum investment upfront, while a Recurring Deposit (RD) lets you deposit fixed monthly installments. While interest rates are similar, an FD yields more total interest because your full principal compounds from Day 1.
Simple Interest vs Compound Interest
Simple interest calculates returns solely on the original principal (SI = P × r × t / 100), while compound interest calculates returns on principal plus accumulated interest (A = P(1 + r/n)^nt). On ₹10 Lakhs at 8% over 15 years, compound interest yields ₹9.72 Lakhs more than simple interest.
Fixed Deposit FAQs
Common questions, calculation formulas, and usage rules.
Most Indian commercial banks compound fixed deposit interest on a 3-month (quarterly) cycle under RBI guidelines.