Fixed Deposit Maturity Calculator

Work out fixed deposit maturity instantly with clear inputs, formula shown and shareable results.

About Fixed Deposit Maturity Calculator

A cumulative fixed deposit reinvests interest at the stated compounding frequency, so the effective yield exceeds the quoted rate. Quarterly compounding on 7.25% delivers about 7.45% a year.

Formula

FD maturity

M = P(1 + i/f)^(f×t); EAR = (1 + i/f)^f - 1

f: Compounding periods per year

Worked example

With the default values below, Fixed Deposit Maturity Calculator returns Maturity Amount of $716,130.28. Change any input above and every figure here is recalculated in your browser.

Inputs used

Deposit Amountminimum 0: 500,000
Annual Interest Rateaccepts 0–100 %: 7.25 %
Term In Yearsaccepts 0.25–10: 5
Compounding Frequencyone of Quarterly, Monthly, Half-yearly, Annual: Quarterly

Results

Maturity Amount: $716,130.28
Interest Earned: $216,130.28
Effective Annual Yield: 7.4495%
Growth Multiple: 1.4323

Step by step

1Values used
2FD maturity
3Maturity Amount= 716,130.28
4Interest Earned= 216,130.28
5Effective Annual Yield= 7.4495
6Growth Multiple= 1.4323

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

What a cumulative deposit actually does

A cumulative fixed deposit pays nothing out until maturity. Each interest credit is added back to the balance and then earns interest itself, which is why the final figure is hard to guess: banks compound quarterly but quote an annual rate. This calculator closes that gap and reports the maturity amount, the interest component, the effective annual yield and the growth multiple.

Use it before renewing a deposit, when two banks quote rates a few basis points apart, or when choosing between the cumulative and payout versions of the same product.

Formulas

M = P × (1 + i ÷ f)^(f × t)

EAR = (1 + i ÷ f)^f − 1

P is the deposit, i the quoted annual rate as a decimal, f the number of compounding events per year (4 quarterly, 12 monthly, 2 half-yearly, 1 annual) and t the term in years.

The 7.25% in the rate field is the calculator's default, used here purely to make the arithmetic concrete. Deposit rates move often and differ by bank, tenure bucket and depositor category, so check the rate card in force on the day you book and enter that figure instead.

Working the defaults

₹5,00,000 at 7.25%, compounded quarterly, for 5 years.

Rate per quarter: 0.0725 ÷ 4 = 0.018125, or 1.8125%
Number of quarters: 4 × 5 = 20
Growth factor: 1.018125^20 = 1.432261
Maturity: 5,00,000 × 1.432261 = ₹7,16,130
Interest earned: 7,16,130 − 5,00,000 = ₹2,16,130
Effective annual yield: 1.018125^4 − 1 = 7.4495%, so 7.45%

Figures are rounded to the nearest rupee; unrounded, maturity is ₹7,16,130.28.

What the compounding column is worth

Same deposit, same quoted rate, same term. Only the frequency changes:

Compounding	Maturity	Effective yield
Annual	₹7,09,507	7.2500%
Half-yearly	₹7,13,864	7.3814%
Quarterly	₹7,16,130	7.4495%
Monthly	₹7,17,675	7.4958%

Going from annual to quarterly adds ₹6,623 without changing the rate. This is why offers should be compared on effective yield: a 7.20% deposit compounded monthly yields 7.4424%, which beats 7.25% compounded annually.

Caveats

Interest is shown gross of tax. In most regimes it is taxable as it accrues, so a cumulative deposit can produce a tax bill in a year it pays you no cash at all.
Premature withdrawal normally attracts a penalty rate and loses the compounding; that is not modelled.
The rate is held fixed for the full term. Whatever you renew into at maturity will be a different number.

Estimates for planning, not financial or tax advice. For non-compounding interest see the simple interest calculator; for a market-linked comparison open the sip return calculator or the ppf maturity calculator.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Cumulative or payout option?

Cumulative compounds and gives a higher maturity; payout gives regular income but no compounding.

Is the interest taxable each year?

In most regimes interest is taxable as it accrues, even in a cumulative deposit, so plan for the tax cash flow.

Does one five-year deposit beat five one-year deposits rolled over?

Only if rates hold. Booking ₹5,00,000 for five years at 7.25% quarterly locks in ₹7,16,130. Annual renewals expose you to whatever rate exists each year — better if rates rise, worse if they fall. The long deposit buys rate certainty; the ladder buys liquidity. Run both in the calculator using the rates each option is actually offered at.

My bank advertises an annualised yield next to the interest rate. Are they two different rates?

They describe the same deposit. The interest rate is what is applied each compounding period; the annualised yield is what the compounding adds up to over a year. On the defaults the rate is 7.25% and the yield is 7.45%. Compare competing offers on yield, since banks compound at different frequencies.

How much do I give up by choosing half-yearly compounding instead of quarterly?

On the default deposit, ₹2,266. Half-yearly compounding matures at ₹7,13,864 against ₹7,16,130 for quarterly — a yield of 7.3814% versus 7.4495%. It is a small edge on ₹5,00,000 over five years, but it costs nothing to pick the more frequent option when a bank offers both at the same rate.

Is there any reason to split one large deposit into several smaller ones?

Yes, for access. The maturity math is identical whether you book ₹5,00,000 once or five deposits of ₹1,00,000, but if you need cash early you can break one ₹1,00,000 deposit and leave the other four compounding, instead of paying a penalty on the whole ₹5,00,000. Deposit insurance limits are another reason to spread across banks.