Compound interest formula
A = P × (1 + r/n)n×t
P is the principal, r the annual rate, n the number of compounding periods a year and t the number of years. Most bank FDs compound quarterly. Interest on FDs is taxable at your slab rate, and banks deduct TDS above ₹50,000 a year (₹1 lakh for senior citizens).
Investing monthly instead? Try the SIP calculator.
Frequently Asked Questions
How do banks compound FD interest?
Most banks compound quarterly for cumulative FDs.
Is FD interest taxable?
Yes, at your slab rate, even if it is not paid out until maturity. TDS applies above the threshold.
What is the rule of 72?
Divide 72 by the interest rate to estimate how many years money takes to double; at 8% it is about nine years.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.