What is a Fixed Deposit (FD)?

A Fixed Deposit is a financial instrument where you deposit a lump sum amount with a bank for a fixed period at a predetermined interest rate. The interest is compounded (usually quarterly in India) and paid at maturity along with the principal. FDs are considered one of the safest investment options.

What is a Recurring Deposit (RD)?

A Recurring Deposit is a savings scheme where you deposit a fixed amount every month for a set tenure. Interest is compounded (usually quarterly) and the total maturity amount includes all your monthly deposits plus the accumulated interest. RDs are ideal for building savings discipline.

How is FD interest calculated?

FD interest is calculated using the compound interest formula: A = P x (1 + r/n)^(n*t), where P is the principal, r is the annual rate, n is the compounding frequency per year, and t is the tenure in years. Most banks in India compound FD interest quarterly (n=4).

What compounding frequency do banks use?

Most Indian banks use quarterly compounding (4 times per year) for both FD and RD. Some banks may use monthly compounding for specific products. This calculator lets you choose between monthly, quarterly, half-yearly, and yearly compounding to match your bank's method.

Is TDS applicable on FD/RD interest?

Yes, Tax Deducted at Source (TDS) is applicable on FD/RD interest if it exceeds Rs 40,000 per year (Rs 50,000 for senior citizens). Banks deduct 10% TDS if PAN is provided, or 20% without PAN. You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

Which gives better returns — FD or RD?

For the same interest rate and tenure, an FD typically earns more total interest than an RD because the entire principal earns interest from day one. In an RD, deposits are staggered monthly, so earlier deposits earn more interest than later ones. However, RDs are better for those who want to save a fixed amount monthly.

FD & RD Calculator

Calculate Fixed Deposit & Recurring Deposit maturity amount with year-by-year breakdown.

Updated Mar 2026100% Private — runs in browser

Deposit Amount₹5,00,000

Interest Rate (% p.a.)7%

Tenure (years)5 yr

Compounding

Banks typically use quarterly

FD Maturity Value

₹7,07,389

Deposit

₹5,00,000

70.7%

Interest Earned

₹2,07,389

29.3%

Effective Return

41.5%

on deposit

Deposit 70.7%Interest 29.3%

Maturity at Different Tenures

Tenure	Invested	Interest	Maturity
1 yr	₹5,00,000	₹35,930	₹5,35,930
2 yrs	₹5,00,000	₹74,441	₹5,74,441
3 yrs	₹5,00,000	₹1,15,720	₹6,15,720
5 yrs	₹5,00,000	₹2,07,389	₹7,07,389
7 yrs	₹5,00,000	₹3,12,706	₹8,12,706
10 yrs	₹5,00,000	₹5,00,799	₹10,00,799

* Calculations are based on the standard FD interest formula with quarterly compounding. Actual returns may vary by bank. TDS may be applicable on interest exceeding ₹40,000/year (or ₹50,000 for senior citizens). Consult your bank for exact rates.

FD & RD Calculator कसरी प्रयोग गर्ने

1
Select the mode — Fixed Deposit (FD) or Recurring Deposit (RD).
2
For FD: enter deposit amount, interest rate, and tenure. For RD: enter monthly deposit, rate, and tenure.
3
Choose compounding frequency (quarterly is standard for most banks).
4
View maturity value, interest earned, and effective return percentage instantly.
5
Check the comparison table to see returns at different tenures or monthly amounts.
6
Click "Show Year-by-Year Breakdown" to see detailed growth each year.

FD & RD Calculator बारेमा

The FD calculator and RD Calculator by ToolsArena is a free, no-signup tool to calculate the maturity value of your Fixed Deposit and Recurring Deposit investments. Whether comparing bank FD rates or planning a monthly RD savings goal, get instant, accurate results.

Key Features

FD & RD Modes: Switch between Fixed Deposit and Recurring Deposit modes with a single click.
Compounding Frequency: Choose monthly, quarterly, half-yearly, or yearly — most Indian banks use quarterly compounding.
Year-by-Year Breakdown: See exactly how your deposit grows each year with a detailed table.
Visual Breakdown: Proportional bar chart showing deposit amount vs interest earned.
Comparison Table: Instantly compare maturity values across different tenures or monthly amounts.

Who Is This For?

Ideal for bank customers comparing FD rates, salaried individuals planning RD savings, and anyone who wants to understand how their deposits compound over time.

Privacy & Security

Runs 100% in your browser — no data is sent to any server, no signup needed.

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