CalcFD & RD Maturity Interest Calculator
Calculate interest and maturity values for Fixed Deposits (FD) and Recurring Deposits (RD) with standard quarterly compounding in India.
Maturity Value
Formula & Calculation
Maturity Value (FD) = P * (1 + r/4)^(4*t) | Maturity Value (RD) = Sum of Monthly Deposits Compounded Quarterly- P: Principal deposit amount (Fixed Deposit) or Systematic Monthly Deposit (Recurring Deposit).
- r: Interest rate per year.
- t: Tenure in years.
How to Use
- Choose the deposit scheme type (Fixed Deposit or Recurring Deposit).
- Input the principal amount or monthly deposit budget.
- Provide the annual interest rate percentage and tenure.
- Inspect maturity amount and total wealth interest gains.
Fixed Deposits (FD) and Recurring Deposits (RD) remain the most popular low-risk saving options for millions of families in India. They offer guaranteed returns, capital safety, and predictable payouts. Calczia's FD / RD Maturity Calculator estimates your interest earnings and final corpus with absolute precision.
FD vs. RD: Which One is Better?
- Fixed Deposit (FD): Best when you have a lump-sum amount (e.g., a bonus, inheritance) to lock away for a fixed tenure (7 days to 10 years). Interest rates are locked and do not fluctuate.
- Recurring Deposit (RD): Ideal for monthly salary earners. You commit to saving a fixed amount (e.g., ₹5,000/month) on a specific date every month. RD interest rates are identical to FD rates for the same tenure.
Quarterly Compounding Interest in India
Most Indian commercial banks (SBI, HDFC, ICICI, etc.) compound interest on a **quarterly basis** (every 3 months) for deposits with tenures of 6 months or more. This means your interest earns interest four times a year, yielding an effective interest rate slightly higher than the nominal rate.
TDS Slabs on Deposit Interest
Interest from FD and RD is fully taxable as "Income from Other Sources" under your income tax slab. Under Section 194A, banks deduct 10% TDS (Tax Deducted at Source) if interest income exceeds **₹40,000** in a financial year (limit is **₹50,000** for senior citizens). If you do not submit your PAN, the bank will deduct 20% TDS.
Frequently Asked Questions
What is the difference between FD and RD?
Fixed Deposit (FD) requires a one-time lumpsum investment, while Recurring Deposit (RD) involves making fixed deposits at regular intervals (monthly).
How is interest compounded on FDs in India?
Indian banks typically compound FD interest on a quarterly basis. The formula is: A = P(1 + r/4)^(4n).
Is FD and RD interest taxable in India?
Yes, interest earned on both FD and RD is taxable as 'Income from Other Sources' under slab rates. Banks deduct 10% TDS if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a year.
What is premature withdrawal in FD/RD?
Withdrawing money before maturity is allowed but usually incurs a penalty of 0.5% to 1.0% on the applicable interest rate.
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