How is FD interest calculated?

FD interest is typically compounded: Maturity = Principal × (1 + Rate/N)^(N×Years), where N = compounding frequency. Some banks use simple interest. This tool supports both modes.

Simple vs compound interest?

Simple interest only earns on the principal. Compound interest earns on principal + accumulated interest. Over time, compounding yields significantly more.

Does compounding frequency matter?

Yes. With the same annual rate, more frequent compounding (monthly vs yearly) yields higher returns. Monthly compounding adds ~0.12% effective annual yield over yearly.

What happens on premature withdrawal?

Premature withdrawal typically results in interest penalty — banks may apply savings rate or reduced rate. Some charge penalties. This tool calculates normal maturity only.

How to choose the best FD?

1) Compare rates across banks; 2) Prefer monthly compounding over quarterly/yearly; 3) Verify compound interest is used; 4) Large deposits may qualify for preferential rates; 5) Note deposit insurance limits.

Fixed Deposit (FD) Interest Calculator

Finance

Free online Fixed Deposit (FD) interest calculator. Calculate maturity amount with simple/compound interest modes and various compounding frequencies (monthly/quarterly/yearly). Compare returns across rates and tenures. 100% client-side.

💰 Input Parameters

Principal ($)

Annual Interest Rate (%)

Tenure (years)

Interest Mode

Compounding Frequency

Tax Rate (%) (optional)

📈 Year-by-Year Detail

Year	Opening Balance	Year Interest	Closing Balance

💰 Input Parameters

📊 Results

📈 Year-by-Year Detail

🔗 Related Tools