Is a fixed deposit the same as a CD?

They work the same way, a lump sum locked in for a fixed term at a guaranteed rate. Fixed Deposit is the common term in many countries, while Certificate of Deposit (CD) is the standard US and Canadian term.

What happens if I withdraw early?

Most banks charge an early withdrawal penalty, often a reduced rate or flat fee. Terms vary by bank.

Does compounding frequency make a big difference?

The difference is usually small but real, more frequent compounding earns slightly more for the same nominal rate, especially over long terms.

FD Calculator

Calculate the maturity value and interest earned on a fixed deposit or CD

Principal Amount ($)

Annual Interest Rate (%)

Term

Compounding

What is the FD Calculator?

A Fixed Deposit (FD) is a lump-sum deposit held with a bank for a fixed term at a guaranteed interest rate — the closest equivalent in the US and Canada is a Certificate of Deposit (CD), while in the UK it's often called a "fixed-rate savings bond." This calculator works out how much your deposit will be worth at maturity, based on the principal, interest rate, term and how often interest compounds.

How to Use the FD Calculator

Enter the principal amount you plan to deposit.
Enter the annual interest rate offered by the bank.
Enter the term, in years or months.
Select the compounding frequency — quarterly is the most common default for fixed deposits, but check your bank's terms.
Read the result — total invested, interest earned, and the maturity amount.

Fixed Deposit / CD Compound Interest Formula

Maturity Amount = P × (1 + r/n)^{n × t}
P = principal, r = annual interest rate (decimal), n = compounding frequency per year, t = term in years

Example Calculation

A $10,000 deposit at 4.5% annual interest, compounded quarterly, over 2 years grows to a maturity amount of approximately $10,942 — meaning about $942 in interest earned over the term.

What Affects Your Maturity Amount

Interest rate — higher rates directly increase your return; rates vary by bank, term length and current market conditions.
Compounding frequency — more frequent compounding (e.g. monthly vs. yearly) slightly increases the final maturity amount for the same nominal rate.
Term length — longer terms generally earn more total interest, though early withdrawal often carries a penalty.

Frequently Asked Questions

They work the same way — a lump sum locked in for a fixed term at a guaranteed interest rate. "Fixed Deposit" (FD) is the common term in many countries, while "Certificate of Deposit" (CD) is the standard US and Canadian term for the same type of product.

Most banks charge an early withdrawal penalty, often a reduced interest rate or a flat fee, if you take the money out before the term ends. Check your specific bank's terms, as penalties vary widely.

The difference is usually small but real — for the same nominal rate, monthly compounding earns slightly more than yearly compounding, because interest starts earning its own interest sooner. Over long terms and large principals, this can add up.

Results are estimates only — actual rates, terms and any applicable taxes on interest depend on your bank and jurisdiction.