FD Interest Calculator India — Simple vs Compound Interest
Fixed Deposit Maturity · Bank Comparison · Tax Impact · Senior Citizen Rates
Two FD types exist in India — cumulative (compound interest, reinvested) and non-cumulative (simple interest paid out monthly/quarterly). Same rate, very different final amounts: ₹10L at 7.5% for 5 years — cumulative gives ₹4,36,039 total interest, non-cumulative gives only ₹3,75,000. The difference is ₹61,039 — purely from reinvesting quarterly interest. See your exact interest comparison here.
🏦 Fixed Deposit Calculator
📅 Interest Payout Schedule
| Quarter | Period | Interest Payout | Cumulative Interest | Balance |
|---|---|---|---|---|
| Q1 | Jun 2026 | ₹8,875 | ₹8,875 | ₹5,08,875 |
| Q2 | Sept 2026 | ₹9,033 | ₹17,908 | ₹5,17,908 |
| Q3 | Dec 2026 | ₹9,193 | ₹27,100 | ₹5,27,100 |
| Q4 | Mar 2027 | ₹9,356 | ₹36,456 | ₹5,36,456 |
| Q5 | Jun 2027 | ₹9,522 | ₹45,979 | ₹5,45,979 |
| Q6 | Sept 2027 | ₹9,691 | ₹55,670 | ₹5,55,670 |
| Q7 | Dec 2027 | ₹9,863 | ₹65,533 | ₹5,65,533 |
| Q8 | Mar 2028 | ₹10,038 | ₹75,571 | ₹5,75,571 |
| Q9 | Jun 2028 | ₹10,216 | ₹85,787 | ₹5,85,787 |
| Q10 | Sept 2028 | ₹10,398 | ₹96,185 | ₹5,96,185 |
| Q11 | Dec 2028 | ₹10,582 | ₹1,06,767 | ₹6,06,767 |
| Q12 | Mar 2029 | ₹10,770 | ₹1,17,538 | ₹6,17,538 |
📐 How FD Returns Are Calculated
Compound Interest Formula (Quarterly):
📖 Example Calculation
Deposit: ₹5,00,000 | Rate: 7.1% p.a. | Period: 3 years | Quarterly compounding
💼 Real Life Use Case
₹25L FD @ 7.5% → Monthly interest ₹15,625 as pension supplement
₹5L FD for 3 yrs @ 7.1% → ₹6.23L ready for property purchase
₹8L FD for 5 yrs @ 7.5% → ₹11.5L for child's college fees
6-month expenses in FD — safe, insured, earns more than savings
Frequently Asked Questions
What is the difference between simple and compound interest in FD?
Simple interest: interest calculated only on principal. ₹1L × 7% × 5 years = ₹35,000. Compound interest (quarterly): interest added to principal each quarter, next quarter interest calculated on higher amount. ₹1L at 7% quarterly compounded for 5 years = ₹41,478 — ₹6,478 more than simple interest.
Which is better — monthly or quarterly FD payout?
Monthly payout effective rate < quarterly rate for same nominal rate (simple interest for monthly, effective quarterly compounding otherwise). At 7% nominal: quarterly effective = 7.186%, monthly effective = 7.229% (if reinvested) or 6.92% (if paid out, simple). For income: quarterly preferred. For reinvestment: cumulative is best.
How much FD do I need for ₹20,000 monthly income?
Required FD = (monthly income × 12) ÷ interest rate. For ₹20,000/month income at 7.5%: corpus needed = (₹2,40,000) ÷ 0.075 = ₹32L. At 8%: ₹30L needed. Invest in non-cumulative FD with monthly payout option. Senior citizens can reduce this corpus with 80TTB tax exemption.
Is FD interest taxable in India?
Yes — FD interest is "income from other sources", taxed at slab rate. 30% slab = pay ₹30 tax on every ₹100 interest. Post-tax yield at 7%: 30% slab → 4.9%. Compare: ELSS long-term 12% → post-LTCG ~10.8% (above ₹1.25L). FD is tax-inefficient for high earners. Consider bonds, debt MF or SCSS instead.
📌 Key Takeaways
- ✅ FD calculator India helps compare bank rates and compute exact maturity amount
- ✅ Quarterly compounding gives higher returns than simple interest or monthly payout FDs
- ✅ Senior citizens get 0.25–0.50% extra interest on FD across most banks
- ✅ FD interest is taxable — TDS @ 10% deducted if interest exceeds ₹40,000/year
- ✅ DICGC insures deposits up to ₹5 lakh per depositor per bank
- ✅ FD Ladder strategy gives both liquidity and better returns than single FD
- ✅ Tax-saving FD under 80C: 5-year lock-in, max ₹1.5L deduction per year