FD Calculator
See how much your fixed deposit will be worth at maturity.
What is a fixed deposit?
A fixed deposit (FD) is a savings instrument offered by banks and NBFCs where you lock a lump sum for a fixed period at a fixed interest rate. In return you get guaranteed, predictable returns that are unaffected by market movements — which is why FDs remain one of the most popular low-risk investments in India. If you prefer saving a fixed amount every month instead of a lump sum, compare a recurring deposit using the RD Calculator.
This calculator uses compound interest to work out your maturity value:
A = P × (1 + (r/100)/n)^(n × t)
A— the maturity amountP— the amount you depositr— the annual interest rate in percentn— how many times interest compounds per yeart— the tenure in years
Unlike a savings account or many loans that may use simple interest, a bank FD compounds — you earn interest on your interest. You can see how much difference that makes with the Simple Interest Calculator.
A worked example
Suppose you place ₹5,00,000 in a 5-year FD at 7% p.a. with quarterly compounding. Interest is added four times a year, so n = 4 and t = 5, giving 20 compounding periods. The maturity value works out to roughly ₹7,07,389 — about ₹2,07,389 of interest on your original ₹5,00,000. That is the gross, pre-tax figure; your in-hand amount will be lower once tax on the interest is accounted for.
How compounding frequency affects your FD
Most banks compound FD interest quarterly, but some offer monthly or yearly compounding. The more frequently interest compounds, the higher your maturity amount for the same rate — though the difference is modest over short tenures and grows with time.
Typical FD interest rate landscape
FD rates vary by the type of institution, the tenure you choose and where the RBI sets rates in the interest-rate cycle. The bands below are broad, indicative ranges for general citizens — always check the bank's current rate card before investing, as rates change frequently.
| Institution type | Indicative FD rate (p.a.) | Good to know |
|---|---|---|
| Public sector banks | around 6.5%–7.25% | Very safe; deposits insured up to ₹5 lakh by DICGC |
| Private banks | around 6.75%–7.5% | Often slightly higher, with the same DICGC cover |
| Small finance banks | around 7.5%–8.5% | Highest rates; also DICGC-insured up to ₹5 lakh |
| Post Office Time Deposit | around 6.9%–7.5% | Government-backed; rates reset each quarter |
| Corporate / NBFC FDs | around 7.5%–8.5% | Higher risk; check the CRISIL or ICRA credit rating |
Senior citizens usually earn an extra 0.25%–0.50% over these rates. Bank and small-finance-bank deposits are insured up to ₹5 lakh per depositor per bank by the DICGC, so splitting a very large sum across banks keeps the whole amount protected.
Cumulative vs non-cumulative FDs
A cumulative FD reinvests interest back into the deposit, so you receive the full compounded amount at maturity — this is what the calculator models. A non-cumulative FD pays interest out monthly, quarterly or yearly, which suits people who need a regular income stream but earns slightly less overall because interest is not reinvested. If regular payouts are your goal, you can also model a systematic withdrawal plan with the SWP Calculator.
TDS on FD interest and how to reduce it
FD interest is fully taxable as per your income tax slab, and banks deduct TDS (tax deducted at source) once your interest crosses a threshold. For FY 2026-27 a bank deducts TDS at 10% when your interest from that bank exceeds ₹50,000 in a financial year (₹1,00,000 for senior citizens). If your PAN is not registered with the bank, TDS is deducted at 20% instead.
TDS is not an extra tax — it is adjusted against your final liability when you file your return. If your total income is below the taxable limit, you can submit Form 15G (if you are below 60) or Form 15H (senior citizens) so the bank does not deduct TDS in the first place. To estimate the tax due on your interest, use the Income Tax Calculator.
Premature withdrawal and the penalty
Breaking an FD before maturity usually costs you twice: the interest is recalculated at the rate applicable for the period you actually held the deposit — not the higher booked rate — and most banks levy a penalty of around 0.5%–1%. So the effective return on an FD closed early is lower than the figure shown here. If there is a chance you will need the money sooner, pick a shorter tenure or ladder your deposits instead.
FD laddering for liquidity and steadier returns
Rather than locking one large sum in a single FD, laddering splits it across several FDs with staggered maturities — for example five FDs maturing one year apart. As each one matures you either use the cash or reinvest it at the prevailing rate. This gives you regular access to a portion of your money without breaking a single big deposit, and it averages out interest-rate swings over the years.
Things to keep in mind
- Senior citizens usually earn 0.25%–0.50% higher rates.
- Breaking an FD early attracts a penalty and a lower interest rate.
- Interest earned is fully taxable as per your income slab.
- Tax-saver FDs with a 5-year lock-in qualify for a deduction under Section 80C in the old tax regime.
Since FD interest is fully taxable, long-term savers often weigh FDs against the tax-free Public Provident Fund — compare returns with the PPF Calculator. And because FD rates are fixed while prices keep rising, it is worth checking your real return with the Inflation Calculator.