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.
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.