FD Calculator

A fixed deposit (FD) is a term deposit where you place a lump sum with a bank or non-banking financial company (NBFC) for a fixed period at an agreed interest rate. The rate and tenure are locked at the time of booking, which makes FDs a common choice for parking emergency funds or goal-based savings where capital preservation matters more than high growth.

In India, scheduled commercial banks offer FD tenures typically ranging from 7 days to 10 years. Interest may be paid at maturity (cumulative) or at regular intervals (non-cumulative). The Reserve Bank of India regulates how banks accept deposits and disclose terms, but each bank sets its own retail interest rates.

The calculator at the top of this page supports simple interest and compound interest with monthly, quarterly or yearly compounding. Indian banks most often use quarterly compounding on cumulative FDs. Toggle senior citizen for a typical +0.50% rate bump, and use the tax slab chips for a post-tax estimate on interest.

Simple interest: M = P + (P × r × t ÷ 100), where P is the deposit amount, r is the annual rate in percent, and t is tenure in years.

Quarterly compound interest (typical for cumulative bank FDs): M = P × (1 + r/400)^4t. Interest is compounded every quarter, which is why the divisor is 400 (four quarters per year).

Worked example (compound, quarterly): For ₹1,00,000 at 7.5% p.a. for 5 years, M = 1,00,000 × (1 + 7.5/400)²⁰ ≈ ₹1,44,995. Estimated interest ≈ ₹44,995. The same deposit at simple interest would mature at ₹1,37,500 (₹37,500 interest). Use the sliders above to model your own figures.

Estimate maturity and interest in seconds without applying compounding formulae by hand. Compare monthly, quarterly and yearly compounding, model a senior-citizen rate bump, and optionally view post-tax interest for your slab. The growth chart and year-wise schedule show how corpus builds versus your fixed principal.

Cumulative (reinvestment) FD: Interest is compounded and reinvested; you receive principal plus accumulated interest at maturity. This maximises returns for the same rate and tenure.

Non-cumulative FD: Interest is paid out on a schedule you choose — monthly, quarterly, half-yearly or annually. Useful if you need regular income from savings.

Tax-saving FD (5-year): A special category with a mandatory 5-year lock-in. Deposits qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per financial year. Interest remains taxable. Premature withdrawal is generally not allowed.

Senior citizen FD: Many banks offer an additional rate — often 0.25% to 0.50% p.a. — on standard tenures for customers aged 60 and above. The extra rate is set by each bank, not by RBI.

Unlike small savings schemes such as PPF (where the Ministry of Finance notifies rates quarterly), bank FD rates are determined by each bank's board-approved policy within RBI's Master Directions on Interest Rate on Deposits. Banks consider their cost of funds, liquidity needs, and competition when publishing rate cards.

As of 12 July 2026, retail bank FD rates for popular tenures of 1–5 years commonly fall in an indicative range of roughly 3% to 7.5% p.a., with senior citizen variants often slightly higher. Short-tenure deposits and NBFC FDs may differ. Rates are subject to change without notice — always check your bank's website or branch on the day you invest.

RBI's directions allow banks to permit premature withdrawal of term deposits and to levy a penalty for early exit. The penalty is usually a reduction from the contracted rate or a charge specified in the bank's terms. Some flexi or sweep-in products link an FD to a savings account for partial liquidity without breaking the full deposit.

Tax-saving FDs cannot normally be broken before the 5-year lock-in. For all other FDs, read the premature-withdrawal clause on your receipt before booking.

Interest earned on FDs is treated as "Income from other sources" and taxed at your applicable income-tax slab rate. It is not exempt unlike PPF returns.

Under Section 194A, banks deduct tax at source (TDS) when aggregate interest on FDs with that bank exceeds ₹50,000 in a financial year (₹1,00,000 for resident senior citizens, effective 1 April 2025). TDS does not replace your final tax liability — you must report interest in your return and pay any additional tax due, or claim a refund if excess TDS was deducted.

Resident individuals whose total income is below the taxable limit may submit Form 15G (or Form 15H for senior citizens) to request no TDS, subject to conditions in the Income Tax Act.

Choosing between products depends on how you save, your time horizon, and tax treatment. Use the comparison below alongside our RD calculator and PPF calculator to model returns.

FDs are often used by salaried and retired individuals who want predictable returns without market volatility. They suit short-to-medium goals — a tuition fee due in two years, a home down-payment buffer, or parking a windfall while deciding longer-term investments.

FDs may be less suitable if you need inflation-beating growth over decades, want full liquidity without penalty, or can commit to long horizons where tax-free instruments like PPF offer competitive post-tax returns. This is general information, not personal financial advice.