Fixed Deposit (FD) Calculator
Use this FD calculator to compute the maturity value of a fixed deposit at any Indian bank — SBI, HDFC, ICICI, Axis, Kotak, PNB or any small finance bank. Enter your principal amount, the interest rate and tenure, and the calculator instantly shows your maturity amount, total interest earned, and effective annualised return — using the standard quarterly compounding method that all Indian banks apply.
This fixed deposit calculator handles both cumulative FDs (interest reinvested, paid at maturity) and senior citizen rates (typically 0.50% higher). Senior citizens get a TDS exemption threshold of ₹1 lakh on annual FD interest vs ₹50,000 for general citizens. Enter your tenure in years and additional months — the math is exact to the day for Indian bank FD computation.
How this calculator works
How fixed deposit interest works
A fixed deposit (FD) is a savings instrument where you lock a lumpsum with a bank for a chosen tenure (7 days to 10 years) at a fixed interest rate. Unlike savings accounts where rates fluctuate, FD rates are locked at the time of deposit — you're protected from rate cuts but also miss any rate hikes during your tenure.
The compounding formula
Indian banks compound FD interest quarterly, even when the rate is quoted annually. The formula:
Maturity = Principal × (1 + r/4)^(4t)
Where: r = annual interest rate (in decimal), t = tenure in years
Example: ₹1,00,000 for 5 years at 7%. Maturity = 1,00,000 × (1.0175)^20 = ₹1,41,478. Interest earned = ₹41,478. The same deposit at simple interest (no compounding) would yield only ₹35,000 — quarterly compounding adds ₹6,478 over 5 years.
Typical FD rates in India — April 2026
The RBI's repo rate stood at 5.5% in early 2026, leading to deposit-rate moderation across banks:
| Bank | General Citizen Rate | Senior Citizen Rate |
|---|---|---|
| State Bank of India (SBI) | 3.05% – 6.40% | 3.55% – 7.05% |
| HDFC Bank | 2.75% – 6.50% | 3.25% – 7.00% |
| ICICI Bank | 2.75% – 6.50% | 3.25% – 7.10% |
| Axis Bank | 3.00% – 6.45% | 3.50% – 7.20% |
| Punjab National Bank | 3.00% – 6.60% | 3.50% – 7.10% |
| Small finance banks (Suryoday, AU, etc.) | 4.00% – 8.10% | 4.15% – 8.25% |
Highest rates are typically on special-tenure deposits (e.g., 444 days, 555 days). Always compare rates at your specific tenure, not the headline maximum.
Senior citizen advantage
Anyone aged 60+ gets 0.50% additional interest on FDs across nearly all banks. SBI and a few others offer an extra 0.10% under "WeCare" or similar schemes for tenures of 5+ years. So a 65-year-old can earn 7.05% at SBI vs 6.40% for a 35-year-old on the same FD — a meaningful gap on a ₹10 lakh deposit (₹6,500 extra per year).
Tax on FD interest
Interest earned on FDs is fully taxable as Income from Other Sources at your slab rate, in the year it accrues — even if the FD is cumulative and you haven't actually received the money. Banks deduct TDS:
- General citizens: 10% TDS if annual FD interest from one bank exceeds ₹50,000
- Senior citizens (60+): 10% TDS if annual interest exceeds ₹1,00,000
- Without PAN: 20% TDS regardless of amount
If your total income is below the basic exemption, submit Form 15G (general) or Form 15H (senior) at the start of the year to avoid TDS. The interest is still reported in your ITR, but TDS isn't deducted.
Tax-saver FDs (Section 80C)
Special tax-saver FDs offer Section 80C deduction up to ₹1.5 lakh under the old tax regime. They have a mandatory 5-year lock-in, no premature withdrawal allowed, and only single-holder mode (or first-holder gets the deduction in joint accounts). Rates are typically the same as regular 5-year FDs — SBI offers 6.05% for tax-saver FDs in April 2026 vs 7.05% for senior citizens. The ₹1.5 lakh deduction is unavailable in the new tax regime.
Premature withdrawal penalty
If you break an FD before maturity, you typically lose 0.5% to 1.0% from the contracted rate, OR the rate applicable for the actual period the deposit stayed with the bank — whichever is lower. So a 5-year FD at 7% closed after 2 years usually pays only the 2-year rate of 6.5% minus 1% penalty = 5.5% — losing ~25% of expected interest.
Worked example
Example 1 — ₹2,00,000 FD for 3 years at 6.5% (general citizen):
- Quarterly rate: 1.625%; total quarters: 12
- Maturity = 2,00,000 × (1.01625)^12 = ₹2,42,567
- Interest earned: ₹42,567 over 3 years
- Effective annualised return: 6.66% (slightly above the headline rate due to compounding)
Example 2 — ₹5,00,000 FD for 5 years at 7.05% (senior citizen at SBI):
- Maturity = 5,00,000 × (1.017625)^20 = ₹7,07,810
- Interest earned: ₹2,07,810 over 5 years
- Annual interest: ~₹41,562 in early years to ~₹46,500 in final year
- TDS applicable: above ₹1 lakh annual interest threshold from year 4 onwards (~₹4,500 TDS in year 5)
Example 3 — ₹1,00,000 tax-saver FD for 5 years at 6.05% (under 80C):
- Maturity = 1,00,000 × (1.015125)^20 = ₹1,35,089
- Interest earned: ₹35,089
- Section 80C deduction: ₹1,00,000 — saves ₹30,000 in tax (30% slab) or ₹20,000 (20% slab)
- Effective post-tax return: significantly higher than regular FD due to upfront tax saving
Frequently asked questions
Why do banks use quarterly compounding instead of annual?
Quarterly compounding reflects how interest accrues in commercial deposit accounting — the bank credits interest to its books every quarter end. While the customer doesn't physically receive the interest until maturity in a cumulative FD, the compounding effect is real because interest earned in Q1 starts earning further interest from Q2 onwards. This is mandated by RBI accounting standards and is why ₹100 at 7% for 5 years yields ₹141 (quarterly) vs ₹140 (annual) vs ₹135 (simple).
What is the difference between cumulative and non-cumulative FD?
In a cumulative FD, interest is reinvested every quarter and paid as a lumpsum at maturity — best for long-term wealth building. In a non-cumulative FD, interest is paid out monthly, quarterly, half-yearly or annually as a regular income stream — preferred by senior citizens needing cash flow. Cumulative FDs always yield slightly more (compounding effect) but lock the income till maturity.
Should I split FDs across multiple banks for safety?
Yes, especially for amounts above ₹5 lakh. The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures bank deposits up to ₹5 lakh per depositor per bank in case the bank fails. So ₹50 lakh in one bank has only ₹5 lakh protected; ₹50 lakh across 10 banks (₹5 lakh each) is fully insured. Public sector banks are considered safer than small private/cooperative banks, but the insurance cap applies equally.
Can I get a loan against my FD?
Yes. Most banks let you borrow up to 75-90% of your FD value at an interest rate 1-2% higher than the FD rate. The FD continues to earn interest, your borrowing happens against it. This is much cheaper than personal loans (10.5-18%) and faster — usually approved within hours since the bank has the FD as collateral. Useful for short-term liquidity without breaking the FD and losing maturity benefits.
What happens if I break my FD early?
You pay a premature withdrawal penalty — typically 0.5% to 1.0% lower than the contracted rate, OR the rate applicable to the actual period the deposit stayed (whichever is lower). For example, a 5-year FD at 7% closed after 2 years would pay the 2-year rate (say 6.5%) minus 1% = 5.5%. You lose roughly 25-30% of expected interest. Always check the penalty clause in your FD receipt before breaking.
Is FD interest taxable even if I haven't received it?
Yes. Tax law follows the accrual principle — interest is taxable in the year it accrues, not when paid. So in a 5-year cumulative FD, even though you receive the entire amount only at maturity, you must declare the interest credited each year in your ITR and pay tax on it. The bank issues Form 16A annually showing TDS deducted. Many investors miss this and face notices from the IT department.
How do I avoid TDS on FD interest?
Submit Form 15G (under 60) or Form 15H (60+) at the start of the financial year, declaring that your total income is below the taxable limit. Each bank where you have FDs needs a separate form. The form is valid for one financial year. Note: avoiding TDS does not mean the interest is tax-free — you still report it in your ITR. It only means the bank doesn't deduct 10% at source.
Can NRIs invest in fixed deposits?
Yes. NRIs can open three types of FDs: (1) NRE (Non-Resident External) — fully repatriable, interest tax-free in India, rates around 6.5-7.0%, (2) NRO (Non-Resident Ordinary) — interest taxed at 30% TDS, partially repatriable (up to USD 1 million per year), (3) FCNR (Foreign Currency Non-Resident) — held in USD/GBP/EUR/JPY, no exchange risk, rates 4-5% in USD.
What is the difference between FD and RD?
FD: lump-sum deposit at the start, single maturity payout. RD (Recurring Deposit): equal monthly deposits over the tenure, single maturity payout. Both use quarterly compounding and have similar headline rates at most banks, but FD always yields more in absolute terms because all your money earns interest from day one. RD is best when you don't have a lumpsum but can save monthly from salary.
Are small finance bank FDs safe?
Small finance banks (SFBs) like Suryoday, AU, Equitas offer significantly higher rates (8-8.25% for senior citizens vs 7-7.2% at large private banks). They are RBI-licensed scheduled commercial banks and offer the same DICGC ₹5 lakh deposit insurance. The trade-off: SFBs have smaller balance sheets and more concentrated lending exposure, so split your investment across an SFB and a large bank for the safety-yield balance.