FD Calculator

A Fixed Deposit is the most popular savings instrument in India — and this calculator shows you exactly what your FD will be worth at maturity, with quarterly compounding (the standard used by every major Indian bank). Enter your principal, the rate, and the tenure to see the maturity value, total interest earned, and year-by-year growth.

Use it to plan emergency funds, short-term goals, tax-saving 5-year FDs under Section 80C, or to compare FD returns against mutual funds, PPF, and other fixed-income options.

What is a Fixed Deposit (FD)?

A Fixed Deposit is a savings product where you deposit a lump sum with a bank or NBFC for a chosen period — anywhere from 7 days to 10 years — at an interest rate fixed for the full tenure. The bank guarantees both the principal and the interest, making FDs one of the lowest-risk investments available.

Deposits up to ₹5 lakh per bank per depositor are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). If you have more than ₹5 lakh to invest, spread it across multiple banks to stay fully insured.

How does an FD work?

1. You deposit a lump sum with the bank and lock in the current interest rate for your chosen tenure.
2. The bank compounds interest — for most tenures over 6 months, interest compounds quarterly. Tenures under 6 months use simple interest.
3. At maturity, the bank pays you back the principal plus accumulated interest (in a cumulative FD), or has been paying you periodic interest along the way (in a non-cumulative FD).
4. TDS is deducted at source if your total annual FD interest exceeds the threshold (₹40,000 regular, ₹1 lakh for senior citizens from FY 2025-26).

The FD maturity formula

• A — maturity amount
• P — principal (initial deposit)
• r — annual interest rate as a decimal (e.g. 0.07 for 7%)
• n — compounding frequency per year (4 for quarterly, the standard)
• t — tenure in years

Interest earned = A − P. For tenures under 6 months, banks use the simpler formula: Interest = P × r × t.

Worked example: ₹5,00,000 at 7.5% for 5 years

• P = ₹5,00,000
• r = 0.075
• n = 4 (quarterly compounding)
• t = 5

• Maturity amount: ₹7,25,366
• Interest earned: ₹2,25,366
• Effective annual yield: ~7.71% (vs 7.50% nominal)

How to use this FD calculator

1. Enter the deposit amount. Minimum FD with most banks is ₹1,000; corporate FDs typically start at ₹10,000.
2. Enter the annual rate. Use the rate quoted by your bank for your specific tenure and customer category (regular / senior citizen / super senior).
3. Enter the tenure. Whole years work cleanly; for tenures in months, divide by 12 (e.g. 18 months = 1.5 years).
4. Review the breakdown. See maturity value, total interest, and the year-by-year growth table that shows your FD's progression.

Current FD rates by bank (India, May 2026)

Rates change frequently — always verify on the bank's website before depositing. Small finance banks offer higher rates but check the bank's credit rating. DICGC insurance of ₹5 lakh applies to all RBI-licensed banks including small finance banks.

FD growth at different rates and tenures (₹5,00,000 principal)

A 1% rate difference compounded over 10 years on a ₹5 lakh principal produces roughly ₹2 lakh in additional interest. Always shop the best 3 banks before committing.

Types of fixed deposits

• Regular FD (cumulative). Interest compounds quarterly and pays out at maturity. The most common and highest-compounding choice.
• Non-cumulative FD. Interest is paid monthly, quarterly, or yearly. Good for retirees who want predictable cash flow.
• Tax-saving FD (5-year 80C). Section 80C deduction up to ₹1.5 lakh under old regime. Mandatory 5-year lock-in. No premature withdrawal allowed. No loan against FD allowed.
• Senior citizen FD. 0.25–0.50% higher rate for depositors 60+. Some banks (SBI WeCare, HDFC Senior Care) offer extra 0.10% for super seniors (80+).
• Flexi / sweep FD. Linked to a savings account — excess balance over a threshold auto-sweeps into FD and back when needed. Lower yield but excellent liquidity.
• Corporate / Company FD. NBFCs like Bajaj Finance, Shriram Transport, and HDFC Ltd offer FDs at 0.5–1% higher than banks — but they are NOT covered by DICGC. Check CRISIL/ICRA AAA rating only.
• NRE / NRO / FCNR FDs. For non-resident Indians. NRE and FCNR are tax-free in India; NRO is taxable. Rates vary by currency for FCNR.

Tax on FD interest (India)

FD interest is fully taxable under "Income from Other Sources" at your income-tax slab rate.

• TDS threshold. 10% TDS applies if your total FD interest from one bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens; raised to ₹1,00,000 for senior citizens from FY 2025-26 onward).
• No PAN = 20% TDS. Always update your PAN with the bank.
• Form 15G / 15H. Submit at the start of each financial year if your total income is below the basic exemption limit — banks will then not deduct TDS.
• Interest accrues yearly. Even in cumulative FDs where you receive interest only at maturity, it is taxable in each year it accrues. Many depositors miss this.
• Section 80TTB (senior citizens). Deduction up to ₹50,000 per year on interest from savings accounts and FDs combined (old regime).

Use our Income Tax Calculator to see your overall liability with FD interest included.

FD vs SIP vs PPF vs Liquid Fund

FD laddering — get liquidity without losing rate

Instead of locking ₹10 lakh in a single 5-year FD, split it into 5 FDs of ₹2 lakh each with tenures of 1, 2, 3, 4, and 5 years. As each FD matures, reinvest it for 5 years.

This FD ladder gives you:

• Access to ₹2 lakh every year without breaking any FD.
• Average tenure of ~3 years, so you earn closer to the long-tenure rate.
• Reinvestment-rate diversification — when rates rise or fall, one-fifth of your money reprices each year.

This is the standard technique used by retirees who need periodic liquidity but don't want to sacrifice the higher rate of longer tenures.

Common FD mistakes to avoid

1. Not shopping rates. The same ₹5 lakh in HDFC at 6.5% vs Unity SFB at 8.15% over 5 years differs by ₹73,000. Compare at least 3 banks.
2. Putting more than ₹5 lakh in one bank. DICGC only insures the first ₹5 lakh per depositor per bank. Spread larger amounts across institutions.
3. Choosing non-cumulative when you don't need the cash. Non-cumulative payouts forfeit compounding. Cumulative is almost always better for goal-based saving.
4. Forgetting Form 15G/15H. If your taxable income is below the exemption limit, banks deduct TDS anyway unless you submit the form. You can claim a refund later, but it takes months.
5. Auto-renewal at the bank's default rate. When your FD matures, banks auto-renew at the prevailing rate — which may be lower than what's currently available elsewhere. Set a calendar reminder for maturity.
6. Confusing tax-saving FDs with regular FDs. Tax-saving FDs have a hard 5-year lock-in with NO premature withdrawal under any circumstances. Don't put emergency money in them.
7. Ignoring inflation. A 6.5% FD with 5% inflation gives just 1.5% real return. For long-horizon goals, FDs alone don't keep pace with inflation.

FD myths vs reality

• Myth: "FDs always beat inflation." Reality: only marginally, and after tax, often not at all.
• Myth: "All my FD money is insured." Reality: only ₹5 lakh per bank per depositor. Anything above is at-risk if the bank fails.
• Myth: "I should put all my savings in FDs for safety." Reality: for goals over 7 years, equity-based investments typically deliver 2–3× the corpus after inflation and tax.
• Myth: "Senior citizens always get higher rates." Reality: only for FDs in their own name. The 0.5% bonus does NOT apply to NRO/NRE accounts.
• Myth: "FD interest is taxed only at maturity." Reality: it accrues yearly and is taxable yearly, even in cumulative FDs where you don't receive the money until later.

Tips to maximize FD returns

• Use small finance banks for tenures under 3 years where they pay 1–1.5% more. Stay within ₹5 lakh per bank.
• Choose the cumulative option when you don't need regular interest.
• Look for special tenure rates. 444-day, 555-day, and 999-day "celebration" rates often beat the standard 1/2/3-year rates by 0.25–0.50%.
• Ladder your FDs for both liquidity and reinvestment diversification.
• Open senior citizen FDs in a senior parent's name (with full disclosure) to access the 0.50% bonus — verify gift tax implications.
• Submit Form 15G/15H at the start of every financial year if your income is below the taxable threshold.
• Reinvest matured FDs promptly — don't let auto-renewal lock you into a stale rate.

Related calculators

• Compound Interest Calculator — the underlying math, with any compounding frequency.
• SIP Calculator — compare FD with equity SIP returns.
• PPF Calculator — compare with the tax-free government scheme.
• Lumpsum Calculator — equity mutual fund lump-sum returns.
• Inflation Calculator — see what your FD maturity will be worth in real terms.
• Income Tax Calculator — quantify the after-tax FD return at your slab rate.
• CAGR Calculator — compare effective annual returns across FDs and alternatives.

The bottom line

FDs are the right tool for capital preservation and short-term goals — not for long-term wealth creation. Use this calculator to find the best rate-tenure combination for your specific need, ladder larger amounts across banks for both insurance coverage and liquidity, and don't let auto-renewal cost you silently. For anything beyond 5–7 years, ask whether a tax- advantaged equity SIP would serve you better.