FD maturity formula
A = P × (1 + r/n)n × t, where P is the deposit, r the annual rate, n the number of compounding periods per year and t the tenure in years. Most Indian banks compound FD interest quarterly.
Tips to earn more on FDs
- Senior citizens usually get 0.25%–0.50% extra interest.
- Small finance banks often offer higher rates (deposits up to ₹5 lakh are insured by DICGC).
- Ladder your deposits across tenures to reduce reinvestment risk.
- FD interest is taxable at your slab rate; TDS applies above the yearly threshold. Submit Form 15G/15H if eligible.