FD Calculator
Calculate your Fixed Deposit maturity value with different compounding frequencies.
FD Details
Formula
Worked Example
Rs. 500,000 in a 3-year deposit at 12% a year, compounded quarterly, grows to Rs. 712,880.44, earning Rs. 212,880.44. Compounded monthly, the same deposit reaches Rs. 715,384.39; compounded once a year, Rs. 702,464.
How to Interpret the Result
The maturity value is before tax. Banks withhold tax on profit from deposits, and breaking a deposit early usually means a lower rate, so compare offers on the same basis: the annual rate, how often profit is compounded or paid out, and the penalty for early withdrawal.
Common Mistakes
Comparing a monthly-payout deposit with a cumulative one as if both compound. Forgetting withholding tax on the profit, which is higher if you are not on the Active Taxpayers List. Locking away money you may need before maturity. Ignoring inflation: a 12% deposit with 10% inflation adds only about 2% a year to what your money can buy.
Learn the Method
Free lessons that explain the ideas behind this calculator: