Updated for FY

FD Calculator

Calculate your fixed deposit maturity amount, total interest earned and effective annual yield. Supports monthly, quarterly, half-yearly and yearly compounding.

Results update live
All compounding frequencies
Senior citizen rates
Year-by-year breakdown
TDS note included

FD Details

₹
₹10K₹1Cr
%
1%15%
yrs
mo

Goal presets

Maturity Amount

₹1,14,888

after 2 years at 7% p.a.

Principal

₹1,00,000

Interest Earned

₹14,888

Effective Yield (p.a.)

7.19%

Wealth Multiplier

1.15×

TDS Note
If annual interest > ₹40,000, bank will deduct TDS at 10%. Submit Form 15G if income is below taxable limit.

Investment Breakdown

maturity ₹1.15L

Principal

₹1,00,000

87.0%

Interest Earned

₹14,888

13.0%

Principal 87% Interest 13%

Year-by-Year Growth

How your FD corpus grows over time

Principal
Interest
0

Year-by-Year Schedule

Opening balance, interest credited and closing balance each year

Year Opening Balance Interest Earned Closing Balance

What is a Fixed Deposit?

A Fixed Deposit (FD) is the most popular savings instrument in India. You deposit a lump sum amount with a bank or post office for a fixed tenure at a pre-agreed interest rate. The interest is compounded (usually quarterly) and the maturity amount is paid at the end of the tenure.

FDs are considered one of the safest investments since they are covered by DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance up to ₹5 lakh per bank per depositor.

DICGC Insurance

Your FD is insured up to ₹5 lakh (principal + interest) per bank. For amounts exceeding this, consider spreading across multiple banks.

FD Formula — How Interest is Calculated

FD uses the compound interest formula:

A = P × (1 + r/n)^(n × t)

Where A = maturity amount, P = principal, r = annual rate (decimal), n = compounding frequency/year, t = tenure in years.

Example: ₹1L at 7% quarterly for 2 years

A = 1,00,000 × (1 + 0.07/4)^(4×2)

A = 1,00,000 × (1.0175)^8 = ₹1,14,888

FD Interest Rates in India (FY 2025-26)

SBI (1–3 years)
6.50–7.00% Sr: 7.00–7.50%
HDFC Bank (1–3 years)
7.00–7.25% Sr: 7.50–7.75%
ICICI Bank (1–3 years)
7.00–7.25% Sr: 7.50–7.75%
Post Office TD (5 yr)
7.50% Tax benefit u/s 80C
Small Finance Banks
8.00–9.00% Higher risk, check DICGC

* Approximate rates. Verify with your bank before booking.

FD Example Calculations

₹1L · 7% · 1yr · Quarterly ₹1,07,186
Interest ₹7,186 · Eff. yield 7.19%
₹5L · 7.25% · 3yrs · Quarterly ₹6,18,907
Interest ₹1,18,907 · Gain 23.78%
₹10L · 7.5% · 5yrs · Quarterly ₹14,43,938
Interest ₹4,43,938 · Gain 44.39%
Senior Citizen bonus
At 7.5% (+0.5% sr benefit), same ₹10L for 5 years = ₹14,69,328 — ₹25,390 extra vs regular rate.

Cumulative vs Non-Cumulative FD

Cumulative FD — Better for Wealth Creation

Interest is compounded and added to the principal. Paid only at maturity. Best for long-term goals — you earn interest on interest, maximising returns.

Non-Cumulative FD — Better for Regular Income

Interest is paid out monthly, quarterly, or half-yearly. Principal returned at maturity. Best for retirees or anyone needing a regular income stream.

Tax on FD interest

FD interest is taxable at your slab rate. TDS at 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for seniors). File Form 15G/15H to avoid TDS.

FD vs Other Safe Investments

FD (SBI, 2yr)

Fixed rate, flexible tenure

~7.0%
PPF

EEE tax status, 15yr lock-in

7.1%*
Post Office TD (5yr)

Govt backed, 80C benefit

7.5%
Debt Mutual Funds

Market linked, LTCG indexation

7–9%*

* PPF rate is tax-free equivalent. Mutual fund returns vary. Past performance not guaranteed.

Frequently Asked Questions

Common questions about fixed deposits in India

How is FD interest calculated?
FD uses compound interest: A = P × (1 + r/n)^(n×t), where P = principal, r = annual rate, n = compounding frequency, t = years. For ₹1L at 7% quarterly for 2 years: A = ₹1L × (1.0175)^8 = ₹1,14,888.
What is the current FD interest rate in India?
As of FY 2025-26: SBI 6.5–7.0%, HDFC/ICICI 7.0–7.25%, Post Office TD 7.5% (5yr). Senior citizens earn 0.25–0.50% extra. Small finance banks offer up to 9%. Rates change based on RBI repo rate decisions.
Is FD interest taxable in India?
Yes. FD interest is taxable at your income tax slab rate as "Income from Other Sources." TDS at 10% is deducted if interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G (below 60) or Form 15H (senior citizen) to avoid TDS deduction if your total income is below the taxable limit.
What is the difference between cumulative and non-cumulative FD?
Cumulative FD: Interest is compounded and reinvested, paid at maturity. Ideal for wealth creation. Non-cumulative FD: Interest is paid out periodically (monthly/quarterly/half-yearly). Ideal for retirees or those needing regular income. Cumulative FDs always yield higher maturity amounts due to compounding.
Can I break an FD before maturity?
Yes. Premature FD closure is allowed at most banks, but a penalty of 0.5–1% is levied on the interest rate. You get interest for the period actually completed, minus the penalty. Some tax-saving FDs (under Section 80C) have a mandatory 5-year lock-in and cannot be broken prematurely.
FD vs PPF — which is better?
PPF wins on tax-efficiency (EEE — investment, interest, maturity all tax-free) and long-term returns. FD wins on flexibility: any tenure from 7 days to 10 years, premature closure allowed, and no mandatory lock-in (except tax-saving FD). For goals under 5 years, FD. For long-term tax-saving wealth, PPF.
What is DICGC insurance on FDs?
DICGC (Deposit Insurance and Credit Guarantee Corporation, a subsidiary of RBI) insures your bank deposits up to ₹5 lakh per depositor per bank (principal + interest combined). If a bank fails, you're guaranteed up to ₹5 lakh. To protect large FD amounts, spread them across multiple banks rather than keeping all in one.
Does compounding frequency matter for FDs?
Yes, but the difference is small for short tenures. For ₹1L at 7% for 5 years: monthly compounding gives ₹1,41,763, quarterly ₹1,41,478, yearly ₹1,40,255. More frequent compounding = slightly higher returns. Most Indian bank FDs use quarterly compounding by default.

Related Calculators

PPF Calculator
Tax-free long-term returns
SIP Calculator
Mutual fund SIP returns
CAGR Calculator
Compound annual growth rate
EMI Calculator
Home, car & personal loans