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FD Calculator

Fixed deposit maturity with quarterly compounding.

₹5,000₹1,00,00,000
3%10%
1 yr10 yr

Maturity amount

₹4.24 L

Deposit₹3,00,000
Interest earned₹1,24,433
Deposit71%
Interest29%

Uses quarterly compounding, the standard for Indian bank FDs. TDS applies if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).

How banks compound FD interest

Indian banks compound cumulative FDs quarterly: maturity = P × (1 + r/4)^(4t). A '7% FD' therefore yields slightly more than 7% annually — about 7.19% effective. Non-cumulative FDs pay the interest out instead, so nothing compounds.

Frequently asked questions

Is FD interest taxable?

Yes — fully taxable at your slab rate, and banks deduct TDS at 10% beyond the annual threshold. Post-tax, a 7% FD yields ~4.9% for someone in the 30% bracket; factor that into comparisons with debt funds.

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