Simple Interest Calculator

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Brand: Superworks
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Fixed Deposit returns with quarterly compounding (Indian bank standard). Toggle between compounding frequencies to compare.

Bank Accurate Quarterly Compounding Live Calculation

Your FD details

Most Indian banks compound FD interest quarterly. Use this default.

Deposit amount

Interest rate (% p.a.)

Period (years)

Compounding frequency

Maturity value

₹1.42 L

Matures in 5 years at 7% (quarterly compounding)

Principal₹1,00,000

Total interest₹41,478

Interest rate7% p.a.

Period5 yr

CompoundingQuarterly

How FD interest is calculated

Fixed Deposits in India compound interest quarterly by default. The maturity value depends on principal, rate, period, and compounding frequency.

01
Pick a tenure
Longer tenures usually fetch higher rates. Senior citizens get an extra 0.25-0.50%.
```
tenure = 5 years
// banks: 7 days to 10 years
```
02
Set compounding
Quarterly is standard for most Indian banks. Monthly compounding (rare) gives slightly more.
```
m = 4 // quarterly
r_period = annual_rate ÷ m
```
03
Compound forward
Apply the compounding formula across all periods to get maturity.
```
FV = P × (1 + r÷m)^(m × n)
// e.g. 100K × (1+0.0175)^20
```

FormulaFV = P × (1 + r/m)^(m × n)P = principal, r = annual rate (decimal), m = compoundings/year, n = years

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Regulator

RBI Master Direction

Fixed deposit norms applicable to all Indian banks.

Insurance

DICGC ₹5 Lakh Insurance

Deposit insurance protecting each depositor per bank.

Bank Rates

SBI / HDFC FD Rates

Major Indian bank FD rates and quarterly compounding standard.

Comparison

BankBazaar / Paisabazaar

Rate aggregators for comparing FD across banks.

Tax Reference

ClearTax FD Guide

TDS u/s 194A, Form 15G/H rules for senior citizens.

Theory

Investopedia Compound Interest

Quarterly compounding formula derivation and theory.

FAQs about Fixed Deposits

Is FD interest taxable?

Yes. Interest is added to your income and taxed at your slab rate. TDS at 10% kicks in if annual interest > ₹40,000 (₹50,000 for seniors) at a single bank. Submit Form 15G/15H if your total income is below taxable.

What's the safest FD?

Bank FDs are insured up to ₹5 lakh per depositor per bank by DICGC. Public-sector banks and large private banks are the safest practical choice. Avoid co-operative banks for large deposits.

Can I break an FD early?

Yes. Most banks charge a 0.5-1% penalty on the applicable rate (effective rate, not the contracted one). Some special FDs are non-withdrawable — read terms carefully.

Does compounding frequency matter?

Yes, slightly. Quarterly compounding gives more than yearly. The difference between quarterly and monthly is small (~0.1-0.2% effective).

Senior citizen FD benefits?

Banks typically offer 0.25-0.75% extra interest to senior citizens (60+). Some special senior-citizen schemes (SCSS) offer government-backed rates around 8%.

FD vs. savings account?

Savings accounts offer 2.5-4% but full liquidity. FDs offer 6-8% but lock the money. For an emergency fund use a savings/liquid fund. For idle money beyond emergency, FDs make sense.

Should I pick cumulative or non-cumulative FD?

Cumulative reinvests interest until maturity — best for long-term growth. Non-cumulative pays interest monthly/quarterly to you — useful for regular income (retirees). Same maturity rate, different cash flow.

Are tax-saver FDs worth it?

5-year tax-saver FDs qualify for ₹1.5L deduction under section 80C. Useful if you have unused 80C limit. But returns are taxable and locked in for 5 years — ELSS funds typically beat them over 5+ years.

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Simple Interest Calculator

Your FD details

How FD interest is calculated

Pick a tenure

Set compounding

Compound forward

RBI Master Direction

DICGC ₹5 Lakh Insurance

SBI / HDFC FD Rates

BankBazaar / Paisabazaar

ClearTax FD Guide

Investopedia Compound Interest

FAQs about Fixed Deposits

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