Online Maturity Calculator
Instantly calculate maturity amount and total interest earned for your Recurring Deposit (RD), Lump Sum, PPF, NSC, or general savings investments.
🔄 RD Monthly Installment
RD ModeNote: Indian bank FDs typically compound quarterly by default.
Effective Annual Yield
8.65% annualized return
How is Maturity Amount Calculated in India?
When you invest in financial instruments like Fixed Deposits (FD), Recurring Deposits (RD), or Systematic Investment Plans (SIP), the final amount you receive at the end of the tenure is called the Maturity Amount. It consists of your original investment (principal) plus the accumulated compound interest or market returns.
1. Fixed Deposit (FD) Formula
Indian bank FDs compound interest quarterly. The compounding formula used is:
Where P is Principal, r is annual interest rate (in decimals), n is 4 (quarters/year), and t is tenure in years.
2. Recurring Deposit (RD) Formula
RDs calculate interest on a monthly diminishing compounding basis:
Each monthly installment compounds for the remaining months of the tenure.
Frequently Asked Questions (FAQs)
What is the difference between Simple Interest and Compound Interest maturity?
Simple interest only earns returns on your original principal. Compound interest earns returns on both your principal AND the accumulated interest from previous periods, leading to exponential wealth growth over longer tenures.
Is TDS deducted from maturity proceeds in Indian FDs?
Yes, according to Indian income tax rules, if your total interest earned across all FDs in a bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank will deduct 10% TDS (Tax Deducted at Source) unless you submit Form 15G/15H.
Why do bank FDs compound quarterly instead of annually?
Most RBI-regulated commercial banks in India (SBI, HDFC, ICICI, Axis) calculate term deposit interest on a quarterly rest basis by default. This gives investors a slightly higher effective yield than simple annual compounding.