A = P × (1 + r/n)^(n×t)
P = Principal | r = Annual Rate (decimal) | n = Compounding Periods/Year | t = Years
APY = (1 + r/n)^n − 1
How to Use
Enter the deposit amount and the annual interest rate offered by your bank for the chosen CD term.
Enter the CD term in months and select how frequently interest is compounded (monthly is most common for Indian FDs).
Get total interest earned, maturity amount, and APY. Use Compare to find the best rate, or Early Withdrawal to estimate penalty impact.
Frequently Asked Questions
A Certificate of Deposit (CD) is a time-deposit savings product offered by banks at a fixed interest rate for a fixed term. In India, this is called a Fixed Deposit (FD). Unlike savings accounts, the money is locked in until maturity; early withdrawal incurs a penalty.
CD interest uses compound interest: A = P × (1 + r/n)^(n×t), where P = principal, r = annual rate as a decimal, n = compounding periods per year, t = time in years. Monthly compounding: A = P × (1 + r/12)^(12t).
APY (Annual Percentage Yield) is the effective annual return after compounding. APR (Annual Percentage Rate) is the nominal rate. A 7% APR compounded monthly gives APY = (1 + 0.07/12)^12 − 1 = 7.229%. Always compare APY for the true return.
Early withdrawal penalties typically range from 3 months of interest (for short-term CDs) to 12 months of interest (for long-term CDs). For Indian FDs, the penalty is usually 0.5–1% below the applicable rate for the actual holding period.
CDs typically offer higher rates (5–8%) vs savings accounts (3–4%) but lock your money. If you don't need the funds for the term, CDs/FDs are better. Use the Compare tab to see the interest difference — for ₹1 lakh over 1 year, even a 1% rate difference equals ₹1,000+ in extra interest.