Fixed Deposits
Cumulative vs non-cumulative FD
A cumulative FD generally reinvests interest until maturity, while a non-cumulative FD pays interest periodically; the better fit depends on cash-flow needs.
Cumulative deposits
Interest is typically added to the balance under the product’s compounding terms. The depositor receives the principal and accumulated interest at maturity, subject to the bank's terms.
Non-cumulative deposits
Interest may be paid monthly, quarterly, half-yearly or yearly. That can support regular cash flow, but the paid-out interest is not automatically reinvested in the deposit.
Compare the right things
Look at payout frequency, effective maturity, liquidity needs, premature-withdrawal conditions and tax treatment—not just the headline annual rate.
A practical limitation
Actual product names and features differ by bank. Confirm the deposit receipt and terms before opening or renewing an FD.
How to check an FD estimate
For a cumulative FD, calculate A = P × (1 + r/n)^(n × t). With ₹5,00,000 at 7.25% for five years and quarterly compounding, the result is about ₹7,16,130; estimated interest is about ₹2,16,130. Use the bank's maturity advice when its tenure or day-count convention differs.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
Use the relevant calculatorFrequently asked questions
Is the maturity result a bank quote?
No. It is a compound-interest estimate based on the entered inputs; product terms can change actual proceeds.
Does this calculator include TDS or early-withdrawal effects?
No. Check the bank's terms and current applicable tax rules for those details.