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Finance & InvestmentEntry № 01.11Documented Formula

Fixed Deposit (FD) Maturity Calculator

Calculates bank fixed deposit maturity proceeds, interest earnings, and post-TDS yield using standard quarterly compounding.

Popular Searches:Calculate FD maturity on 1 lakh for 5 yearsQuarterly compounding formula for bank FDTDS deduction on bank fixed deposit interestFD interest payout vs reinvestment cumulative
Bank Fixed Deposit (FD) Compounding Engine
$100,000.00
$
7.25%
%
5 Years
1 Yr3 Yrs5 Yrs10 Yrs
Deduct 10% TDSApply tax deduction if annual interest exceeds legal limit
Maturity Proceeds
Maturity Value (at 5 yrs)
$143,226.06
Total Principal Deposited$100,000.00
Total Interest Accrued+$43,226.06
A = P · (1 + r/4)⁴ᵗ (Quarterly compounding)
Mathematical Proof & FormulaStandard Mathematical Notation

How This Calculation Formula is Formulated

Indian commercial banks (including SBI, HDFC, and ICICI) compound fixed deposit interest on a quarterly basis (n = 4 intervals per calendar year). Principal accumulates interest every 3 months, which is added to the principal for subsequent interest calculations until maturity.

Standard Algebraic Representation
A = P \cdot \left(1 + \frac{r}{4}\right)^{4t}
Documented algebraic formula with transparent derivation and reference notes.

Variable Definitions & Measurement Units

P
Principal Deposit
Initial lump-sum deposit amount
r
Annual Interest Rate
Stated nominal annual rate offered by the financial institution
n
Compounding Frequency
Standard quarterly compounding interval (n = 4)
t
Tenure
Total duration of the fixed deposit deposit
Step-by-Step Calculation Example

Bank FD of ₹1,00,000 at 7.25% for 5 Years

Principal:₹1,00,000Annual Rate:7.25% p.a.Tenure:5 Years (20 Quarters)
1
Periodic Quarterly Rate
i = 7.25% / 4 = 1.8125% = 0.018125
Interest rate applied per 3-month compounding period.
2
Total Compounding Periods
n · t = 4 × 5 = 20 quarters
Interest compounded 20 times over 5 years.
3
Maturity Valuation
A = 100,000 × (1 + 0.018125)²⁰ = 100,000 × 1.432049 = ₹1,43,205
Total compound maturity value.
Conclusion: The 5-year FD grows to ₹1,43,205, generating ₹43,205 in total compound interest.
In-Depth Editorial Analysis

TDS Rules on Fixed Deposit Interest

Under Section 194A of the Indian Income-tax Act, banks deduct Tax Deducted at Source (TDS) at 10% if total interest earned across all branches exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). If PAN is not provided, TDS is deducted at 20%.

Investors whose total income is below the taxable threshold can submit Form 15G (or Form 15H for senior citizens) at the beginning of the financial year to request zero TDS deduction.

Frequently Asked Questions

Frequently Asked Questions About Fixed Deposit (FD) Maturity Calculator

Why does bank FD yield exceed simple interest?

Because interest is credited and reinvested every quarter, subsequent quarters earn interest on prior interest, producing an effective annual yield higher than the nominal rate.

What extra interest do senior citizens get on FDs?

Most Indian public and private banks offer an additional 0.50% interest rate premium to senior citizens (aged 60 and above).

Can I withdraw my FD before maturity?

Yes, but banks typically charge a premature withdrawal penalty of 0.5% to 1.0% on the applicable interest rate for the period the deposit was held.

Are 5-year tax-saving FDs eligible for premature withdrawal?

No. 5-year tax-saving fixed deposits under Section 80C have a mandatory 5-year lock-in period with no premature liquidation or loan facility permitted.

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Deterministic Precision & 100% Client-Side Privacy

All calculations execute in your local browser using IEEE 754 double-precision floating-point arithmetic. Your figures and financial metrics remain private and are never uploaded or saved to any cloud servers.