Fixed Deposit (FD) Calculator
Amount to Deposit
₹5,00,000
Interest Rate (p.a.)
6.5%
Tenure (Years)
5 Yr
Maturity Value₹6,90,210
Invested Amount
Wealth Gained
Invested Amount₹5,00,000
Wealth Gained₹1,90,210
Effective Yield6.66%
Maturity Value₹6,90,210
How do we calculate your FD returns?
The Compound Formula
A = P × (1 + r/n)^(n×t)
Indian banks use Quarterly Compounding ($n=4$). This means your interest is calculated every 3 months and added to your principal, earning you "interest on interest."
Expert Note: TDS & Inflation
While FDs are safe, remember that interest is taxable if it exceeds ₹40,000/year (₹50,000 for seniors). Additionally, your "Real Rate of Return" is your interest rate minus inflation and taxes.