RBI Term Deposit Engine · Quarterly Compounding Standard · 100% Zero Bias

FD Calculator: Maturity & Monthly Income

Estimate FD maturity with quarterly compounding and gross monthly or quarterly interest income. Actual bank payout rates may be discounted.

Deposit Amount

₹

₹1,00,000

₹10 K₹1 Cr

Presets:

Interest Rate (% p.a.)

3 %12 %

Presets:

Tenure (Years)

1 Yr10 Yr

Presets:

Compounding Frequency & Benefits

Compounding Frequency:

Quarterly (Standard)RBI Standard

MonthlyCompounding model

YearlyCompounding model

Senior Citizen (+0.50%)Eligible for investors aged 60 and above

7.00% p.a.

Total Amount Payable

₹1,23,144

Deposit period: 3 Years (36 Months)

Principal Amount₹1,00,000

Total Interest₹23,144

Total Maturity ValuePrincipal + Compounded Interest

₹1,23,144

Indicative FD Interest Income

Gross monthly estimate₹583

Gross quarterly estimate₹1,750

Simple gross estimates: principal × annual rate ÷ 12 or 4. Actual bank payouts may be discounted or use different terms; this estimate is separate from cumulative maturity.

Maturity Value₹1,23,144

Principal Amount

₹1,00,000(81%)

Total Interest

₹23,144(19%)

Tenure Horizon Comparison Matrix

See how compounding interest accelerates maturity value across standard bank deposit tenures.

Tenure	Principal	Interest Earned	Maturity Value	Effective Yield

Cumulative FD: Quarterly Compounding

Many cumulative bank FDs compound interest quarterly and pay the accumulated amount at maturity. Payout FDs work differently; the monthly and quarterly figures above are simple gross estimates, not bank quotes.

Senior Citizen Advantage

Some banks offer senior citizen rate premiums, but the premium varies by product and tenure. The toggle models an assumed 0.50 percentage-point increase; check the bank's current offer.

TDS & Tax Rules

FD interest is taxable at the applicable slab rate. For bank time deposits, TDS generally applies above ₹50,000 interest in a financial year (₹1,00,000 for resident senior citizens), counted bank-wide rather than branch by branch.

Frequently Asked Questions

How is Fixed Deposit (FD) interest compounded in Indian banks?

In accordance with RBI guidelines, Indian commercial banks compound cumulative FD interest on a quarterly basis (every 3 months) using the compound interest formula: A = P * (1 + r/4)^(4*t).

Are Fixed Deposit interest earnings taxable in India?

FD interest is taxable at the applicable slab rate. For bank time deposits, TDS generally applies when interest paid or credited by a bank exceeds ₹50,000 in a financial year (₹1,00,000 for a resident senior citizen). The threshold is bank-wide, not per branch; TDS is a tax credit, not the final tax.

Can I prematurely withdraw money from a Fixed Deposit?

Yes, regular bank FDs permit premature withdrawal, usually subject to a 0.5% to 1.0% penalty on the interest rate applicable for the period the deposit remained with the bank. 5-Year Tax Saver FDs have a strict 5-year lock-in.