FD maturity amount: how to calculate interest and final payout

How do you calculate the maturity amount of an FD?

A fixed deposit (FD) maturity amount is the original money deposited plus interest payable at maturity under the bank's terms. If you choose a cumulative FD, interest is generally added back during the deposit period and can earn further interest. A non-cumulative FD may instead pay interest at regular intervals, leaving a different amount payable at maturity.

For a simple estimate where a cumulative FD compounds quarterly, use:

Maturity amount = P × (1 + r/4)^(4 × t)

Here P is the deposit amount, r is the annual interest rate as a decimal, and t is the term in years. The formula assumes a constant rate, exactly four compounding periods each year and a term that fits those periods. It is not a substitute for a bank's own maturity quote.

Use the Janooji FD calculator to explore principal, term and assumed interest rate.

Example: ₹1 lakh FD at 7% for two years

Suppose you deposit ₹1,00,000, the contracted annual rate is 7%, and the product compounds quarterly for two full years.

• Principal: ₹1,00,000
• Rate per quarter: 7% ÷ 4 = 1.75%
• Number of quarters: 2 × 4 = 8
• Illustrative maturity amount: ₹1,14,888.18
• Illustrative interest earned: ₹14,888.18

These are worked-example assumptions, not an offer of a current 7% rate or a promise that a bank will pay this exact amount. Final payout can differ because of day-count methods, the handling of partial periods, bank rounding, tax deductions and the product's payout frequency.

Cumulative versus non-cumulative FD

With a cumulative FD, interest stays invested under the scheme and is paid with the principal at maturity. With a non-cumulative FD, interest may be credited periodically to your account. The same quoted annual rate does not necessarily produce the same maturity-date lump sum, because the payout pattern is different.

When comparing products, check whether the advertised rate is annual, how often interest compounds or is paid, and whether the bank quotes a cumulative or periodic-interest product. RBI guidance requires banks to disclose applicable deposit terms and rates.

What happens if you break an FD early?

Premature withdrawal can change the interest payable. Depending on the product and bank policy, the payable rate may reflect the shorter actual holding period and a disclosed penalty may apply. Do not assume the original contracted rate applies for the full scheduled term after an early closure. Some products may have withdrawal restrictions.

Before opening an FD, ask for the premature-closure rule, any applicable charges, and the amount you could receive if you need the money sooner.

Are FDs insured in India?

For eligible deposits at an insured bank, the Deposit Insurance and Credit Guarantee Corporation (DICGC) covers eligible principal and accrued interest together up to ₹5 lakh per depositor per bank, when held in the same right and capacity. Different branches of the same bank do not give separate ₹5 lakh limits. This is insurance coverage, not a cap on how much you can deposit or earn.

Check the bank's insured status and the DICGC FAQ before relying on coverage.

What an FD maturity calculator cannot tell you

A calculator estimates interest from the values you enter. It cannot verify a bank's live FD rate, predict future renewals, confirm tax withholding on your account, or determine what happens after a premature withdrawal unless those bank-specific details are supplied. Treat it as a planning tool and compare the result with the bank's written maturity illustration.

Quick checklist before booking an FD

• Confirm the contracted rate and whether it is fixed or floating.
• Confirm the compounding or periodic payout frequency.
• Enter the actual term, including any extra days.
• Check the bank's rounding, taxation and premature-closure terms.
• Compare the maturity figure to the bank's official quote.

Related tool: FD Calculator.