Fixed Deposits
FD simple vs compound interest
Simple interest is calculated on principal alone, while compound interest adds earned interest to the balance for later periods.
Simple interest
Simple interest is P × r × t. It does not earn interest on prior interest.
Compound interest
With compounding, each period's interest is added to the balance. At the same stated annual rate and tenure, more frequent compounding can modestly increase a mathematical maturity estimate.
Cumulative and non-cumulative
A cumulative FD generally reinvests periodic interest. A non-cumulative FD may pay interest out periodically, so cash flow and final maturity differ.
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.