Calculate maturity value, compound interest earned, and effective annual yield (APY) on bank fixed deposits and CDs.
Did this calculation save you time?
Student ProjectHi! I'm a student developer building Calculat in my spare time. I was tired of searching for basic math tools and having to click through 10 spammy popups, loan ads, and cookie trackers.
I keep this website 100% free, private, and ad-free. If this helped you with your homework, project, or finances today, bookmarking this page or telling a friend helps me keep building more free tools!
A Fixed Deposit (FD) or Certificate of Deposit (CD) is a low-risk financial instrument offered by commercial banks and credit unions where you deposit a lump sum for a fixed tenure at a predetermined guaranteed interest rate. Interest compounds periodically (monthly, quarterly, semi-annually, or annually) until maturity.
A = P \left(1 + \frac{r}{n}\right)^{n \times t} \quad ; \quad I = A - PWhere A is the final maturity amount, P is the initial principal, r is the annual nominal interest rate (decimal), n is compounding events per year (e.g. 4 for quarterly), and t is time in years.
Scenario: Depositing $10,000 for 5 years at 7.00% annual interest compounded quarterly.
Principal P = $10,000, r = 0.07, n = 4, t = 5 years (20 quarters).
Periodic Rate: 0.07 / 4 = 0.0175 per quarter.
Maturity: $10,000 × (1.0175)^20 = $10,000 × 1.414778 = $14,147.78.
Total Interest Earned: $14,147.78 - $10,000.00 = $4,147.78.
With quarterly compounding, interest is calculated and added to the principal 4 times every year. Future quarters earn interest on previous interest, increasing the effective annual percentage yield (APY).
Yes. In most jurisdictions (such as the US, UK, and India), interest earned on fixed deposits and CDs is treated as taxable ordinary income and must be reported on annual tax filings.
In a cumulative FD, interest accumulates and reinvests until final maturity for maximum compounding growth. In a non-cumulative FD, interest is paid out periodically (monthly or quarterly) directly to your checking account as cash flow.
In the US, deposits are insured up to $250,000 per depositor per bank by the FDIC. In India, DICGC insures deposits up to ₹5 lakh per depositor across commercial banks.
Calculate long-term wealth accumulation and compound returns from monthly Systematic Investment Plans in mutual funds and index funds.
Calculate Return on Investment (ROI), Compound Annual Growth Rate (CAGR), and total wealth multiplier for any asset or project.
Simulate Systematic Transfer Plans to systematically transfer capital from liquid debt funds to high-growth equity mutual funds.