Calendar & Tax Insights
Your deposit matures on May 29, 2031. Under an estimated 0% tax bracket, your post-tax yield is calculated as:
Worked Example: FD Returns Calculation
Suppose you invest a lump sum of ₹1,00,000 in a bank Fixed Deposit (FD) for a tenure of 3 years at an interest rate of 7.0% p.a. compounded quarterly:
- Principal (P) = ₹1,00,000
- Quarterly Interest rate (i) = 7.0% / 4 / 100 = 0.0175
- Total compounding quarters (n) = 3 years × 4 = 12 quarters
- Calculate maturity amount = ₹1,00,000 × (1.0175)^12 = ₹1,23,144
- Interest earned = ₹23,144
Your Fixed Deposit matures at ₹1,23,144, earning ₹23,144 in interest returns.
Fixed Deposit Calculation Formulas
The mathematical compound growth model used to compute FD returns is:
Where:
- A = Maturity Amount
- P = Principal Invested Sum
- r = Annual Rate of Interest (decimal)
- n = Compounding cycles per annum (e.g. 4 for quarterly)
- t = Tenure in Years
Fixed Deposit Growth Ledger
| Year | Opening Balance | Interest Earned | Closing Balance |
|---|
Frequently Asked Questions
In a cumulative FD, the interest earned is compounded and paid out at maturity, creating higher wealth gains. In a non-cumulative FD, the interest is paid out periodically (monthly or quarterly), providing regular income but less compounding growth.
Yes, FD interest earned is fully taxable according to your income tax slab regime rates. If your annual interest income across all deposits in a bank exceeds ₹40,000 (₹50,000 for senior citizens), the bank will deduct Tax Deducted at Source (TDS) at 10%.