FD Calculator

🏦

Calculate your Fixed Deposit maturity amount instantly — free & accurate

Compounding Frequency

Investment Amount ₹1,00,000

Interest Rate (per year) 7%

Investment Period 5 Years

Maturity Amount

₹0

after 0 Years at 0% p.a. (Quarterly)

Principal

₹0

Interest Earned

₹0

Return Rate

Principal vs Interest Earned

Principal Invested

₹0

Interest Earned

₹0

Year	Opening Balance	Interest Earned	Closing Balance

⚡ Instant Calculation 🏦 RBI Standard Formula 📱 Mobile Friendly 🔒 100% Free

🏦 What is a Fixed Deposit (FD)?

A Fixed Deposit (FD) is one of the safest and most popular investment instruments in India. You deposit a lump sum amount with a bank or NBFC for a fixed period at a predetermined interest rate. At the end of the tenure, you receive your principal plus the interest earned — called the maturity amount.

FDs are preferred by millions of Indians because they offer:

Guaranteed returns — unaffected by market fluctuations
Flexible tenure — ranging from 7 days to 10 years
DICGC insurance — deposits up to ₹5 lakh insured by RBI
Loan facility — borrow up to 90% of FD value against your deposit
Senior citizen benefit — 0.25%–0.5% extra interest rate

📐 FD Maturity Calculation Formula

Banks calculate FD maturity using the compound interest formula:

A = P × (1 + r/n)^n×t

A = Maturity Amount

P = Principal (Invested Amount)

r = Annual Interest Rate (÷100)

n = Compounding Frequency per Year

t = Tenure in Years

📊 Example FD Calculation

Suppose you invest ₹1,00,000 in a Fixed Deposit with the following terms:

Parameter	Value
Principal Amount (P)	₹1,00,000
Annual Interest Rate (r)	7% per annum
Tenure (t)	5 Years
Compounding Frequency (n)	Quarterly (4 times/year)
Maturity Amount (A)	₹1,41,478
Interest Earned	₹41,478
Total Return	41.5%

    💡 Why Quarterly Compounding? Most banks in India compound FD interest quarterly.
    This means interest is added to your principal every 3 months, and the next quarter's interest
    is calculated on this higher amount — giving you more returns than annual compounding.
  

📈 FD Interest Rates Comparison — Top Indian Banks (2026)

FD interest rates vary across banks. Here is a general comparison of typical rates offered by major banks and small finance banks in India. Always check the latest rates on the bank's official website before investing.

Bank Type	1 Year FD	3 Year FD	5 Year FD	Senior Citizen
Large PSU Banks (SBI, PNB)	6.8%–7.0%	6.5%–7.0%	6.5%–6.8%	+0.50%
Large Private Banks (HDFC, ICICI)	7.0%–7.25%	7.0%–7.25%	7.0%–7.25%	+0.50%
Small Finance Banks	8.0%–9.5%	8.5%–9.5%	8.0%–9.0%	+0.50%
NBFCs (Bajaj, Shriram)	7.5%–8.5%	7.8%–8.8%	7.5%–8.5%	+0.25%
Post Office Time Deposit	6.9%	7.1%	7.5%	No extra

*Rates are indicative and change frequently. Verify current rates on the respective bank's official website. Small Finance Bank deposits are also DICGC insured up to ₹5 lakh.

💰 FD Maturity Comparison — ₹1 Lakh at Different Rates

Interest Rate	1 Year	3 Years	5 Years	10 Years
6.5%	₹1,06,677	₹1,21,356	₹1,37,932	₹1,90,256
7.0%	₹1,07,186	₹1,23,114	₹1,41,478	₹2,00,160
8.0%	₹1,08,243	₹1,26,824	₹1,48,594	₹2,20,804
8.5%	₹1,08,774	₹1,28,717	₹1,52,286	₹2,31,756
9.5%	₹1,09,845	₹1,32,586	₹1,59,935	₹2,55,757

*Based on quarterly compounding. Use calculator above for exact amounts.

📋 Types of Fixed Deposits in India

Banks in India offer several types of FDs to suit different financial goals:

🔒

Regular FD

Standard fixed deposit with fixed tenure and guaranteed returns. Most common type.

👴

Senior Citizen FD

Extra 0.25%–0.50% interest for investors aged 60+. Best returns for retirees.

💰

Tax Saving FD

5-year lock-in FD eligible for ₹1.5 lakh deduction under Section 80C.

🔄

Auto-Renewal FD

Automatically renews at maturity at prevailing rates. No manual intervention needed.

💼

Corporate FD

FDs offered by NBFCs and companies. Higher rates but slightly higher risk.

🏛️

Post Office TD

Time Deposits by India Post. Government-backed, completely safe, good rates.

⚖️ FD vs Other Investment Options

Before investing in an FD, compare it with other popular investment options to make the best decision for your financial goals:

Feature	Fixed Deposit	SIP / Mutual Funds	PPF	Savings Account
Returns	6.5%–9.5%	10%–15% (variable)	7.1% (current)	2.5%–4%
Risk Level	Very Low	Medium–High	Zero	Zero
Investment Type	Lump Sum	Monthly SIP	Yearly	Anytime
Liquidity	Medium (penalty)	High (3 days)	Low (15 years)	High
Tax on Returns	Taxable as income	10%–30% LTCG/STCG	Tax-Free	Taxable
80C Benefit	Only 5-yr FD	Only ELSS	Yes	No
Ideal For	Safe short-term goals	Long-term wealth	Long-term + tax	Emergency fund

✅ Choose FD When

You want guaranteed, risk-free returns
Saving for a goal in 1–5 years
You are a senior citizen seeking stable income
Building emergency fund corpus
You cannot afford market volatility

📈 Consider SIP Instead When

Investing for 7–10+ years
You want to beat inflation significantly
Building long-term wealth or retirement corpus
You can handle short-term market swings
Tax-efficient returns are priority

🧾 FD Taxation Rules in India (2026)

FD interest is fully taxable in India. Understanding how FD income is taxed helps you plan your investments more efficiently:

Situation	Tax Treatment
FD interest earned	Added to total income, taxed at your income tax slab rate
TDS on FD interest	10% TDS if interest exceeds ₹40,000/year (₹50,000 for senior citizens)
TDS if no PAN provided	20% TDS deducted by bank
Tax-saving FD (5 yr)	₹1.5 lakh deduction under Section 80C. Interest is still taxable.
Form 15G / 15H	Submit to bank to avoid TDS if total income is below taxable limit
Premature withdrawal	Interest on premature withdrawal is taxable + penalty (0.5%–1%) by bank

    📌 Pro Tip: If your total annual income is below the basic exemption limit (₹2.5 lakh for
    regular / ₹3 lakh for senior citizens), submit Form 15G (or 15H for seniors) at your bank
    branch at the start of each financial year to avoid unnecessary TDS deduction on your FD interest.
  

💡 Smart Tips to Maximise FD Returns

Use FD Laddering Strategy Instead of one large FD, split into multiple FDs with different tenures (1, 2, 3 years). This gives you liquidity at regular intervals while earning good returns.

Choose Quarterly Compounding Most banks offer quarterly compounding which gives better returns than annual compounding. Our calculator shows the exact difference — use it to compare.

Compare Small Finance Banks Small Finance Banks offer 1–2% higher rates than large banks and are equally safe (DICGC insured up to ₹5 lakh). Always compare before investing.

Reinvest Maturity Amount Instead of withdrawing at maturity, reinvest the full maturity amount (principal + interest) to benefit from the power of compounding over the long term.

Book FD When Rates are High FD rates move with RBI repo rate decisions. When rates are at a cycle peak, locking in a long-term FD at higher rates gives you better guaranteed returns.

Submit Form 15G/15H Timely If your income is below the taxable limit, submit Form 15G (below 60 yrs) or 15H (60+ yrs) at the start of each financial year to avoid TDS deduction.

❓ Frequently Asked Questions — FD Calculator

A Fixed Deposit is an investment where you deposit a lump sum amount with a bank for a fixed period at a guaranteed interest rate. At maturity, you receive your principal plus the accumulated interest — called the maturity amount. FDs are considered one of the safest investments in India.

FD interest is calculated using the compound interest formula: A = P × (1 + r/n)^(n×t), where P is principal, r is annual interest rate (÷100), n is compounding frequency per year (4 for quarterly), and t is tenure in years. Most Indian banks use quarterly compounding.

Compounding frequency is how often the bank adds interest to your principal. The more frequent the compounding (monthly > quarterly > half-yearly > annually), the higher your returns. Most banks in India compound FD interest quarterly (4 times a year). Use our calculator to compare the difference.

Yes, FD interest is fully taxable. It is added to your total annual income and taxed at your applicable income tax slab rate. Banks deduct 10% TDS if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H if your income is below the taxable limit to avoid TDS.

Yes, you can do premature withdrawal of FD, but the bank will charge a penalty (typically 0.5%–1% reduction in applicable interest rate). Tax-Saving FDs (5-year) cannot be withdrawn prematurely. It is always better to plan your FD tenure based on your actual liquidity needs.

FDs are very safe. All bank deposits in India are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) under RBI for up to ₹5 lakh per depositor per bank. This includes both principal and interest. Small Finance Banks are also covered under DICGC insurance.

Most banks allow FD deposits starting from ₹1,000. There is generally no maximum limit for regular FDs. However, for Tax-Saving FDs under Section 80C, the maximum investment eligible for deduction is ₹1.5 lakh per financial year.

In a Cumulative FD, interest compounds and is paid at maturity along with principal — suitable for wealth accumulation. In a Non-Cumulative FD, interest is paid out periodically (monthly, quarterly, annually) — suitable for senior citizens and retirees who need regular income.

Yes. Our FD calculator uses the exact compound interest formula (A = P(1+r/n)^nt) that Indian banks use to compute maturity amounts. You can also choose compounding frequency — annually, half-yearly, quarterly, or monthly — to match your bank's compounding method.

⚠️ Disclaimer: This FD Calculator and content on FinToolsHub is for educational purposes only. Actual FD interest rates, maturity amounts, and TDS deductions may vary based on your bank's specific terms and conditions, applicable tax laws, and RBI guidelines. Always verify the current rates with your bank before investing. FinToolsHub is not a financial advisor.