Fixed Deposits
FD compound interest
Compound interest adds periodic interest to the deposit balance, allowing later interest to be calculated on principal plus earlier interest.
The calculation
For a cumulative FD, A = P × (1 + r/n)^(n × t). The compounding frequency n matters because it determines how often interest is added in the mathematical model.
Worked estimate
A ₹5,00,000 deposit at 7.25% annual interest for five years with quarterly compounding gives an estimated maturity of ₹7,16,130. That is ₹5,00,000 principal plus approximately ₹2,16,130 estimated interest.
Frequency is not the whole comparison
Two deposits with the same stated rate can still have different outcomes because of tenure, payout choice, day-count method and product terms. Check the bank's maturity advice.
Do not confuse it with a quote
The calculator illustrates the formula using your inputs. It does not state a bank rate or promise a maturity amount.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
Use the relevant calculator