Bank Fixed DepositsVerified: 2024-10-01
Fixed Deposit (FD) Calculator
Compute your fixed deposit maturity value, cumulative interest, and effective annual yield using standard RBI quarterly compounding rules.
Direct Answer:A Fixed Deposit of ₹5,00,000 for 3 Years (36 Months) at 6.8% (quarterly compounding) yields a total maturity value of ₹6,12,099. Total interest earned is ₹1,12,099 with an effective annual yield of 6.98%.
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Adjust Parameters
₹5 Lakhs
₹
₹10,000₹5,00,00,000
Illustrative Rate: 6.8% (Quarterly Compounding)
%
3%12%
Nominal rate quoted by your bank.
Years
Months
1 Y10 Y
Senior Citizen Rates (+0.50% p.a.)
Applicable for Indian residents aged 60 and above.
Maturity Deposit Amount
₹6,12,099
Includes ₹1,12,099 accumulated interest
Effective Annual Yield is 6.98% due to quarterly compounding.
Principal Deposit
₹5,00,000
Total Interest Earned
₹1,12,099
Effective Annual Yield (APY)
6.98%
Principal vs Interest Breakdown
Total: ₹6,12,099| Category | Amount | Percentage |
|---|---|---|
| Deposited Principal | ₹5,00,000 | 81.7% |
| Total Interest Earned | ₹1,12,099 | 18.3% |
FD Maturity Schedule Across Tenures
| Tenure | Principal | Total Interest | Maturity Value | Effective Yield |
|---|---|---|---|---|
| 1 Year | ₹5,00,000 | ₹34,877 | ₹5,34,877 | 6.98% |
| 2 Years | ₹5,00,000 | ₹72,187 | ₹5,72,187 | 6.98% |
| 3 Years (Current) | ₹5,00,000 | ₹1,12,099 | ₹6,12,099 | 6.98% |
| 5 Years | ₹5,00,000 | ₹2,00,469 | ₹7,00,469 | 6.98% |
| 10 Years | ₹5,00,000 | ₹4,81,314 | ₹9,81,314 | 6.98% |
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How Bank Fixed Deposit Interest Is Calculated
Transparent mathematical formulas and assumptions used across our financial engines.
Mathematical Formula
A = P × (1 + r / n)^(n × t)
Variables & Legend
P
Principal Deposit Amount
₹5,00,000
r
Effective Interest Rate (decimal)
6.8% p.a. (0.068)
n
Compounding Periods Per Year
n = 4 for standard quarterly compounding
t
Tenure in Years
3 years
Conventions & Assumptions
- In accordance with RBI directives, Indian commercial banks compute cumulative term deposit interest with quarterly compounding.
- Senior citizens (aged 60+) receive an additional 0.50% p.a. standard interest premium across all tenure slabs.
- TDS (Tax Deducted at Source) under Section 194A is deducted by banks if annual interest exceeds ₹40,000 (₹50,000 for senior citizens), unless Form 15G/15H is submitted.
Frequently Asked Questions
According to Reserve Bank of India (RBI) directives, Indian commercial banks compute interest on cumulative fixed deposits on a quarterly basis (every 3 months). The interest earned in each quarter is added to the principal to form the opening balance for the subsequent quarter, yielding an Effective Annual Yield (APY) higher than the nominal rate.
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