Calculate Bank Fixed Deposit (FD) Maturity with Quarterly Compounding
Bank Fixed Deposits (FD) are one of India’s most secure and popular fixed-income investment options. As per Reserve Bank of India (RBI) guidelines, interest on cumulative fixed deposits is typically compounded on a quarterly basis throughout the tenure.
FD Compound Interest Formula
A = P × (1 + r/4)^(4 × t)
Where:
- A: Total maturity amount receivable.
- P: Principal deposit amount.
- r: Annual interest rate (in decimal format).
- t: Deposit tenure in years.
Senior Citizen Preferential Rates & TDS Rules
- Senior Citizens (Aged 60+): Most scheduled commercial banks offer an additional 0.50% to 0.75% per annum interest rate premium to senior citizens.
- TDS on FD Interest (Section 194A): Banks deduct 10% TDS if interest earned across all branches of a bank exceeds ₹40,000 per financial year (or ₹50,000 for senior citizens). Eligible individuals with total income below taxable limits can submit Form 15G / Form 15H to prevent TDS deduction.