How to use
- Enter the amount you want to deposit.
- Enter the interest rate offered by the bank.
- Enter the time period in years.
- Choose cumulative (interest is added and paid at maturity) or monthly payout (interest is paid to you every month). For cumulative, choose how often interest is compounded (most banks use quarterly).
Formula
Cumulative: A = P × (1 + r ÷ k)k × t
where P = deposit, r = yearly rate ÷ 100, k = compounding periods per year and t = years.
Monthly payout: interest per month = P × r ÷ 12, and your deposit P comes back at the end.
Frequently asked questions
How much monthly interest will I get on a 40 lakh FD?
At 7% a year, a monthly payout FD of ₹40,00,000 pays about ₹23,333 every month (40,00,000 × 7% ÷ 12). Choose "monthly payout", enter 4000000 and your bank's rate to check it. Banks usually give a slightly lower rate for monthly payout than for cumulative FDs, so use the rate your bank shows for that option.
What is the difference between cumulative and monthly payout FD?
In a cumulative FD the interest stays in the deposit and you get everything at maturity, so it grows faster. In a monthly payout FD the interest is paid into your account every month, which suits people who need regular income, and the deposit itself comes back at maturity.
How often do banks compound FD interest?
Most Indian banks compound FD interest quarterly. Check your bank's terms to be sure.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks may also deduct TDS above a certain limit.
Do senior citizens get a higher rate?
Most banks offer senior citizens an extra 0.25%–0.50% a year. Enter the higher rate to see the difference.