FD and RD calculator
Maturity amount of a fixed deposit or a recurring deposit at the rate your bank quotes, with quarterly compounding the way banks do it.
Pick FD or RD, type the amount, rate and tenure.
How a fixed deposit grows
Banks in India compound FD interest quarterly: every three months the interest earned is added to the deposit and earns interest itself. For a principal P at a yearly rate R (as a fraction) for t years, the maturity amount is
A = P × (1 + R ÷ 4)^(4 × t)
For deposits shorter than six months many banks pay simple interest instead, which is P × R × t. The compounding option above covers both; your FD receipt says which applies.
How a recurring deposit grows
An RD is a series of monthly deposits, each compounded quarterly from the month it is paid until maturity. The calculator adds every instalment's growth: the first instalment earns interest for the full tenure, the last for one month. That is the same result as the bank's RD formula, written out one deposit at a time so it is easy to check.
Worked examples
FD: Rs 1,00,000 at 7% for 36 months, quarterly compounding. The quarterly rate is 1.75%, there are 12 quarters, and 1,00,000 × 1.0175^12 = Rs 1,23,143.93. Interest earned: Rs 23,143.93.
RD: Rs 5,000 a month at 7% for 24 months. You deposit Rs 1,20,000 in all and the maturity amount is Rs 1,29,098.90, so the interest is Rs 9,098.90. The interest looks small next to the FD because, on average, each rupee in an RD is with the bank for only half the tenure.
Things the calculator does not know
- TDS. Banks deduct tax at source once the interest in a financial year crosses a threshold, unless you have given Form 15G or 15H. The threshold changes with the Finance Act, so this page names none; your bank's FD page or your CA has the current figure. The interest is taxable in your hands either way, at your slab.
- Senior citizen rates. Most banks add a little to the rate for depositors over 60. Type the rate that applies to you.
- Premature withdrawal. Breaking an FD early usually means a lower rate for the period run plus a penalty. The receipt states both.
- Rounding. Banks round at each compounding step, so the maturity on your receipt can differ from this by a rupee or two.