FD Calculator
Calculate Fixed Deposit maturity amount, interest earned, and effective yield. Compare compounding frequencies instantly.
FD Details
Growth Over Tenure
Year-wise Breakup
| Year | Value | Interest |
|---|
Top Bank FD Rates (2025)
| Bank | 1 Year | 2 Year | 3 Year | 5 Year | Senior Citizen (+) |
|---|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.00% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.00% | 7.00% | 7.00% | +0.50% |
| Axis Bank | 6.70% | 7.10% | 7.10% | 7.00% | +0.50% |
| Kotak Mahindra | 7.10% | 7.10% | 7.10% | 6.20% | +0.50% |
| Small Finance Banks | 8.50% | 8.50% | 8.50% | 8.25% | +0.25–0.50% |
What Is a Fixed Deposit (FD)?
A Fixed Deposit is a financial instrument where you deposit a lump sum with a bank or NBFC for a fixed tenure at a predetermined interest rate. The principal and interest are guaranteed — making FD one of India's safest investment options.
FD Interest Calculation Formula
For cumulative FDs (interest compounded): M = P × (1 + r/n)^(n×t), where M = maturity amount, P = principal, r = annual rate, n = compounding frequency per year, t = tenure in years.
For quarterly compounding (most common): M = P × (1 + r/4)^(4t)
FD vs Other Safe Investments
- FD vs PPF: FD offers higher flexibility (any tenure 7 days–10 years). PPF gives tax-free returns at 7.1% but locks money for 15 years. PPF wins on post-tax returns for taxpayers in 20%+ slab.
- FD vs NSC: NSC offers 7.7% (5-year lock-in) with 80C benefit. FD rates are comparable but interest is fully taxable. NSC beats FD for tax-paying investors.
- FD vs Debt MF: Debt mutual funds can give 7–8% but without guaranteed returns. FD is DICGC insured up to ₹5L per bank.
- FD vs RD: FD gives one-time lump sum deployment. RD (Recurring Deposit) builds corpus via monthly deposits — similar rate but different cash flow.
Tax on FD Interest
- FD interest is taxed as "Income from Other Sources" at your income tax slab rate.
- Banks deduct TDS at 10% when annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
- Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
- Senior citizens (60+) get an additional 0.25–0.50% interest rate in most banks.
FAQ
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If total income is below taxable limit, submit Form 15G/15H to avoid TDS.
What is DICGC insurance on FD?
Deposits (savings + FD) up to ₹5 lakh per depositor per bank are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation). This covers bank failure risk. To maximize safety, spread large FDs across multiple banks.
Can I break an FD before maturity?
Yes. Premature withdrawal is allowed but usually attracts a penalty of 0.5–1% on the applicable rate for the actual tenure. Some banks offer penalty-free premature withdrawal for emergencies.
Which compounding frequency gives the highest return?
Monthly compounding gives slightly higher returns than quarterly, which beats half-yearly, which beats annual. For ₹1L at 7% for 1 year: annual = ₹7,000, quarterly = ₹7,186, monthly = ₹7,229 interest.