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.

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.

How to Use FD & RD Calculator

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.

About FD & RD Calculator

The ToolsArena FD & RD Calculator is a free, no-signup tool that helps you calculate the maturity value of your Fixed Deposit (FD) and Recurring Deposit (RD) investments. Whether you're comparing FD rates across banks or planning a monthly RD savings goal, this calculator gives you instant, accurate results.

Switch between FD and RD modes with a single click. For Fixed Deposits, enter your lump sum deposit amount, interest rate, and tenure. For Recurring Deposits, enter your monthly deposit amount, interest rate, and tenure. Choose your compounding frequency (monthly, quarterly, half-yearly, or yearly) — most Indian banks use quarterly compounding for FDs and RDs.

The calculator shows your total maturity value, interest earned, effective return percentage, and a visual breakdown of deposit vs interest. A quick comparison table shows maturity values at different tenures (FD) or monthly amounts (RD) side by side. The year-by-year breakdown table lets you see exactly how your money grows each year.

Everything runs 100% in your browser — no data is sent to any server, no signup needed. Perfect for comparing bank FD rates, planning RD savings, or understanding how your deposits grow over time.