How this calculator works
A fixed deposit (FD) earns compound interest — interest is calculated not just on your original deposit, but on the interest that's already accumulated, at each compounding interval. The maturity value is:
A = P × (1 + rate ÷ 100 ÷ freq) ^ (freq × years)
where P is your deposit amount, rate is the annual interest rate, freq is how many times a year interest compounds (4 for quarterly, 12 for monthly, 1 for annually), and years is the tenure. Interest earned is simply the maturity amount minus your deposit.
This calculator assumes a cumulative FD, where interest is reinvested and paid out in full at maturity — the standard structure most banks offer by default.
Why compounding frequency matters
The more often interest compounds, the more you earn on the same nominal rate — because interest starts earning its own interest sooner. On a ₹1,00,000 deposit at 8% for 5 years, annual compounding gives a maturity value of about ₹1,46,933, while monthly compounding gives about ₹1,48,985 — a real difference from compounding frequency alone. Always check whether your bank quotes a quarterly, monthly, or annual compounding rate before comparing FD offers.
The interest rate is an input you provide, not a rate asserted by Shunya. FD rates vary by bank, tenure, and deposit amount, and change over time — always confirm the current rate directly with your bank before making a deposit decision.
Interest earned on your fixed deposits gets added to your total income and taxed at your slab rate. Shunya's CA team can help you file it correctly.
Get Help With ITR Filing →How often do Indian banks compound FD interest?
Commonly quarterly, though it varies by bank — some banks compound monthly or annually instead. This calculator lets you choose the compounding frequency so you can match your bank's actual method.
Is FD interest taxable?
Yes — FD interest is added to your total income and taxed at your income tax slab rate. Banks deduct TDS if your total interest income from that bank crosses the threshold in a financial year.
What's the difference between cumulative and non-cumulative FD?
A cumulative FD reinvests the interest and pays out the full accumulated amount at maturity — this calculator models a cumulative FD. A non-cumulative FD pays out interest periodically (monthly, quarterly, or annually) instead of compounding it, so its maturity value would look different from what this tool shows.
What interest rate should I use in this calculator?
Use whatever rate your bank currently offers for your chosen tenure — this calculator doesn't assume a specific rate, since FD rates vary by bank, tenure, and deposit amount, and change over time. Check your bank's website for its latest published FD rates before you calculate.
This tool is for quick estimation only and is not a substitute for professional tax or financial advice. For your specific situation, consult a practicing CA.
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