Fixed Deposit Interest Calculator — FD Maturity Value & Returns

Most fixed deposits calculate interest using the simple interest formula: I = P × R × T. For a $25,000 deposit at 5.5% over 3 years, the interest is $25,000 × 0.055 × 3 = $4,125. Some FDs offer compound interest if you choose to reinvest the interest, but many pay out interest monthly or quarterly using simple interest calculations.

Maturity value = Principal + Total Interest Earned. For a $25,000 deposit at 5.5% simple interest over 3 years, maturity value = $25,000 + $4,125 = $29,125. This amount is guaranteed as long as you hold the deposit for the full term without early withdrawal.

If you need regular income (retirees, for example), choose a simple interest FD that pays out interest periodically to your account. If you want maximum growth and don't need the income, choose a compound interest option that reinvests your interest. Over 3 years at 5.5%, compound interest would earn approximately $440 more than simple interest on $25,000.

Most banks charge an early withdrawal penalty of 0.5–1% reduction in the interest rate. For example, if your FD rate is 5.5% and you break it early, you might only get 4.5–5% for the period you held it. Some banks also forfeit a portion of accrued interest. Always check your bank's specific terms before opening an FD.

Yes, in most countries FD interest is taxable as ordinary income. In the US, CD interest is reported on Form 1099-INT. In India, banks deduct TDS (Tax Deducted at Source) at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.