Calculate your exact FD maturity amount with quarterly compounding — which is what most Indian banks use.
Corrected 29 August 2026. An earlier version of this page excluded target variable pay from both received cash and taxable salary, which understated income tax. Figures are recalculated under model PS-A3. What changed →
Short answer: Indian FDs compound quarterly, so maturity is P × (1 + r/4)^(4n). A ₹10 lakh FD at 7.25% matures at about ₹14.30 lakh in 5 years. If you take the monthly payout option instead, it pays roughly ₹6,042 a month — taxable at your slab.
Rates and slabs are indicative, as of August 2026
Most Indian banks compound FD interest quarterly, which is what this calculator uses. Quarterly compounding means the interest earned in the first three months gets added to your principal, and the next quarter's interest is calculated on this higher amount. Over time, this compounding makes a noticeable difference — for a ₹10 lakh FD at 7% for 5 years, quarterly compounding gives you about ₹4,180 more than simple interest.
One important thing many people overlook is the tax implication. If your total FD interest from a bank exceeds ₹40,000 in a year (₹50,000 for senior citizens), the bank deducts TDS at 10%. If your total income is below the taxable limit, submit Form 121 — the single declaration that replaced Forms 15G and 15H from 1 April 2026 — to avoid this deduction.
Related: PPF Calculator (tax-free alternative), SCSS for Senior Citizens.
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Written and checked by the PaisaSamajh editorial desk · Last reviewed: 24 August 2026 · How we check this →