WealthJot.ai
WealthJot.ai
🏦 FD / RD Calculator
Calculate maturity value for Fixed Deposit or Recurring Deposit

A FD / RD of ₹2,00,000/month for 3 years at 7.1% grows to ₹2.47 L.

Formula

FD Maturity = P × (1 + r ÷ n)^(n × t). RD Maturity = M × [((1 + r ÷ n)^(n × t) − 1) ÷ (1 − (1 + r ÷ n)^(−n ÷ 12))], where M = monthly deposit

Worked example
InputValue
Deposit TypeFixed Deposit (FD)
Principal / Monthly Deposit₹2,00,000
Annual Interest Rate7.1%
Tenure3 yr
Compounding FrequencyQuarterly
Maturity Amount₹2,47,015
Total Interest Earned₹47,015
Amount Invested₹2,00,000
Effective Annual Rate7.29%
TDS (10% if >₹40K)₹702
Post-TDS Maturity₹2,46,314

How FD returns actually work

Bank FDs compound quarterly by default, so the effective annual yieldAnnual dividend as a percentage of the share price. is slightly above the card rate (7% compounded quarterly ≈ 7.19% effective). The calculator shows maturity for cumulative FDs; payoutA cash payout of company profits to shareholders. FDs (monthly/quarterly interest) trade compoundingEarning returns on your returns — growth that accelerates over time. away for income.

Example₹10 lakh at 7% for 5 years: matures at ~₹14.15 lakh. But for someone in the 30% bracket, the ~₹4.15 lakh interest loses ~₹1.29 lakh to tax — the post-tax return is ~4.9%, barely above long-run inflationThe steady rise in prices that erodes money’s purchasing power.. The same FDA bank deposit locked for a fixed term at a fixed rate. in a 5% bracket keeps most of its yieldAnnual dividend as a percentage of the share price.: FDA bank deposit locked for a fixed term at a fixed rate. attractiveness is mostly a function of your tax slabIncome ranges taxed at progressively higher rates..
Interest is taxable at your slab every year as it accrues — not just at maturity — and banks deduct TDS once interest crosses the annual threshold (₹50,000; higher for senior citizens). Laddering (splitting one large FDA bank deposit locked for a fixed term at a fixed rate. into staggered maturities) keeps liquidityHow easily an asset can be bought or sold without moving its price. without breaking everything for one emergency, and lets you reinvest at fresh rates as each rung matures.
Common mistakeChasing an extra 1-2% at small co-operative banks with your core safety money. DICGC insurance covers ₹5 lakh per bank per depositor — beyond that, an FDA bank deposit locked for a fixed term at a fixed rate. is only as safe as its bank. SpreadThe gap between the highest buy price and lowest sell price. large amounts across banks, or accept the big-bank rate as the price of certainty.
✓ You learnedFDs deliver certainty, not growth: quarterly compoundingEarning returns on your returns — growth that accelerates over time., slab tax every year, DICGC cover to ₹5 lakh per bank. Ladder maturities for liquidityHow easily an asset can be bought or sold without moving its price., deposit within insurance limits, and for 15-year safe money compare against PPF’s tax-free 7.1% first.
FAQs
How is FD interest taxed?

Added to your income and taxed at your slab, every financial year as it accrues — even on a cumulative FD you haven’t touched. Banks deduct 10% TDS beyond the threshold (submit 15G/15H if your income is below taxable limits). In the 30% bracket, a 7% FD nets ~4.9% — the number to compare against debt funds or PPF.

What happens if I break an FD early?

Banks pay interest for the period actually completed, usually minus a 0.5-1% penalty on the applicable rate — you lose some yield, never principal. Laddering avoids most premature breakage: five ₹2 lakh FDs maturing in different years beat one ₹10 lakh block when life intervenes.

Learn the concepts
FD vs Debt Mutual FundsPPF vs FDSavings Account vs Liquid Funds