FD / term deposit calculator
Calculate the maturity amount and interest earned on a fixed or term deposit in any currency.
How FD maturity is calculated
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum with a bank for a fixed tenure at a guaranteed interest rate. The maturity value depends on whether interest is compounded or paid out periodically.
For compounding FDs, the formula is A = P × (1 + r/n)nt, where P is the principal, r is the annual rate, n is the compounding frequency (quarterly is most common for bank FDs), and t is the tenure in years. For a ₹1,00,000 FD at 7% for 3 years compounded quarterly: A = ₹1,00,000 × (1 + 0.07/4)12 ≈ ₹1,23,144. The total interest earned is ₹23,144.
FDs are low-risk instruments guaranteed by deposit insurance (up to ₹5 lakh in India per bank). The trade-off is lower returns compared to equity. They are ideal for capital preservation, emergency funds, or short-to-medium term goals where capital safety is paramount.