FD Calculator
What a fixed deposit becomes at maturity — or what it pays you every month. Rupees in, one honest number out.
The rate is only half the story.
Cumulative deposits compound yearly and pay everything at maturity; payout deposits pay the interest monthly and return the principal at the end. Same rate, very different journeys — slide between the two and compare.
- Cumulative — interest reinvested, paid at maturity.
- Monthly payout — interest paid to you every month.
Illustration only. Banks compound at different frequencies and TDS applies beyond the yearly interest threshold — check your bank's sheet.
| Year | Invested | Interest earned | Value |
|---|
The formula behind the numbers
Interest reinvested yearly — compounding does the rest.
Example: ₹1,00,000 at 7% for 5 years becomes ₹1,40,255 — roughly ₹40,000 earned without a single decision.
Simple interest paid out — ₹583 a month on the same deposit, with the principal returned at the end.
The honest caveat: FD interest is taxed every year at your slab — at the 30% slab, a 7% FD is about 4.9% in hand. For the tax-free alternative, read PPF vs ELSS vs tax-saver FD.
Frequently asked questions
Is FD interest taxable?
Yes — fully, at your income-tax slab, every year it is credited, even in cumulative deposits where you receive it only at maturity. Banks deduct TDS once yearly interest crosses the threshold.
What is the difference between cumulative and non-cumulative FDs?
Cumulative deposits reinvest interest yearly and pay everything at maturity — best when you are growing money. Non-cumulative deposits pay interest monthly or quarterly — best when you need income. The rates quoted are usually identical.
Are FDs safe?
Bank FDs up to ₹5 lakh per bank per depositor are covered by DICGC deposit insurance; beyond that, your money rides on the bank's strength. Small-finance banks and co-operative banks offer higher rates partly for this reason.
FD or debt mutual fund?
They overlap but differ: FDs fix the rate and pay slab-taxed interest; debt funds hold market instruments with returns that vary and gains taxed as capital gains. FDs suit certainty and short horizons; debt funds suit flexibility and certain tax situations.
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