FD Maturity Calculator

## What is the FD Maturity Calculator? The FD Maturity Calculator computes the maturity value of a Fixed Deposit in India. Fixed deposits are one of the safest investment options, offering guaranteed returns. The calculator supports simple interest FD (typically for tenures below 6 months) and compound interest FD (quarterly compounding for longer tenures). ## Formula Used For Simple Interest FD: Maturity = P + (P x r x t / 100) For Compound Interest FD (quarterly): A = P x (1 + r/4/100)^(4t) Where r = annual rate, t = tenure in years ## Worked Example Principal: Rs 1,00,000, Rate: 7% p.a., Tenure: 2 years (24 months), Quarterly compounding r_quarterly = 7/4 = 1.75% n = 4 x 2 = 8 quarters A = 1,00,000 x (1.0175)^8 = Rs 1,15,032 Interest Earned = Rs 15,032 ## Frequently Asked Questions 1. What is the current FD interest rate in India? As of 2025, bank FD rates range from 3% to 7.5% p.a. for regular citizens and 3.5% to 8% for senior citizens. Public sector banks (SBI, Bank of Baroda) typically offer 6.5 to 7.0% for 1 to 3 year tenures. 2. Are FD returns taxable? Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS (Tax Deducted at Source) at 10% if annual interest exceeds Rs 40,000 (Rs 50,000 for senior citizens). 3. What is the senior citizen FD rate advantage? Senior citizens typically get 0.5% extra on FD rates over regular citizens. On a Rs 10 lakh FD for 5 years, senior citizens earn Rs 25,000 to Rs 30,000 more. 4. Can I break my FD before maturity? Yes, but premature withdrawal attracts a penalty of 0.5 to 1% on the applicable rate. 5. How is FD interest calculated — simple or compound? For FDs with tenure below 6 months, banks use simple interest. For tenures above 6 months, interest is compounded quarterly.