FD Calculator — Calculate Fixed Deposit Returns
Find out exactly how much your Fixed Deposit will grow. Supports all compounding frequencies — monthly, quarterly, half-yearly, and annually.
FD Details
Compounding Frequency
Maturity Amount
₹1.41 L
Effective rate: 7.2% p.a.
Principal
₹1.00 L
Interest Earned
₹41,478
Effective Rate
7.2%
Maturity Amount
₹1.41 L
FD Growth Over Time
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is one of India's most popular savings instruments, offered by banks and NBFCs. You deposit a lump sum amount for a fixed tenure at a predetermined interest rate. Unlike savings accounts, the interest rate on an FD is locked in at the time of opening — your returns are guaranteed regardless of market fluctuations. FD tenures in India range from 7 days to 10 years, with interest rates varying by bank, tenure, and investor type (regular vs senior citizen). Bank FDs are insured by DICGC up to ₹5 lakh per depositor per bank, making them one of the safest investment options available to Indian investors.
How to Use the RupeeMath FD Calculator
- 1.Principal Amount: Enter the amount you want to deposit (e.g., ₹1,00,000).
- 2.Interest Rate: Enter the annual interest rate offered by your bank (e.g., 7.5%). Check the bank's website for the latest rates.
- 3.Tenure: Enter the FD duration in years (e.g., 5 years).
- 4.Compounding Frequency: Select how often interest is compounded — monthly, quarterly (most common), half-yearly, or annually.
- 5.View results: Instantly see Maturity Amount, Total Interest Earned, and Effective Annual Rate. The chart shows year-by-year growth of your deposit.
FD Compounding Frequencies Compared
The FD maturity formula is: A = P × (1 + r/n)^(n×t), where r is the annual rate, n is the compounding frequency, and t is tenure in years.
| Frequency | Compounds/year | ₹1L at 7.5% for 5 yrs |
|---|---|---|
| Annually | 1 | ₹1,43,563 |
| Half-yearly | 2 | ₹1,44,141 |
| Quarterly | 4 | ₹1,44,438 |
| Monthly | 12 | ₹1,44,636 |
Example figures for illustration. Actual returns depend on the bank's offered rate.
What is a Fixed Deposit — Complete Guide
A Fixed Deposit is a financial instrument offered by banks and non-banking financial companies (NBFCs) in India where you deposit a sum of money for a predetermined period at an agreed interest rate. Unlike a savings account where your balance fluctuates and the interest rate can change at any time, an FD locks in both your principal and the interest rate for the full tenure. When you open an FD, you receive a Fixed Deposit Receipt (FDR) that specifies the principal amount, interest rate, maturity date, and the maturity amount — every number is guaranteed from day one. This certainty is the primary reason fixed deposits remain one of the most popular investment instruments in India despite the availability of higher-return alternatives.
Indian banks offer FDs across a wide range of tenures — from as short as 7 days to as long as 10 years. Interest rates generally increase with tenure up to a point (typically 1–3 years) and then plateau or slightly decline for very long tenures. Small Finance Banks (SFBs) like AU Small Finance Bank, Equitas, Ujjivan, and ESAF offer significantly higher rates than large PSU and private sector banks — sometimes 1.5–2.5% higher — because they are trying to attract deposits. These higher-rate SFB deposits are also covered by DICGC insurance up to ₹5 lakh per depositor, making them a genuinely good option for investors comfortable with slightly less brand recognition in exchange for higher guaranteed returns.
The compounding frequency of an FD significantly affects the actual return you receive. Most Indian banks compound FD interest quarterly, meaning interest is added to your principal four times a year. Some banks offer monthly compounding for certain deposit types. The more frequently interest compounds, the higher your effective annual return — even at the same stated annual rate. For a ₹5 lakh FD at 7.5% for 5 years, the difference between annual and quarterly compounding is approximately ₹4,000 in total maturity value. While this may seem small, it illustrates why comparing FDs on their stated annual rate alone is insufficient — always calculate the effective annual yield (EAR) which accounts for compounding frequency before comparing deposits across different banks.
Best FD Interest Rates in India 2026
FD interest rates in India are closely linked to the RBI repo rate, which is the rate at which the Reserve Bank of India lends money to commercial banks. When the RBI raises the repo rate to control inflation, banks raise their FD rates to attract deposits; when the RBI cuts rates to stimulate the economy, FD rates typically decline within a few months. As of 2026, major PSU banks like SBI, Bank of Baroda, and PNB offer FD rates in the range of 6.5–7.25% for general customers and 7–7.75% for senior citizens across tenures of 1–5 years. Private sector banks like HDFC, ICICI, Axis, and Kotak offer broadly similar rates, typically 0.1–0.25% higher than SBI for comparable tenures.
Small Finance Banks (SFBs) offer the most competitive FD rates in the country, often 1–2% above the major bank rates. AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, and Jana Small Finance Bank regularly offer rates of 8–9% for specific tenures, with special rates for senior citizens going even higher. These deposits are just as safe as major bank FDs up to the DICGC insured limit of ₹5 lakh per depositor per bank. For investors with FD amounts below ₹5 lakh who prioritise maximum guaranteed return, allocating a portion of their FD corpus to one or two SFBs is a prudent and financially sound strategy.
When comparing FD rates across banks, it is important to look beyond the headline annual rate. Consider the TDS threshold (₹40,000/year for general customers, ₹50,000 for senior citizens), early withdrawal penalty (typically 1% on applicable rate for the completed tenure), auto-renewal policy (some banks silently auto-renew at prevailing rates which may be lower), and whether the bank offers an overdraft facility against the FD if you need liquidity without breaking the deposit. The best FD is not simply the one with the highest rate — it is the one that gives you the best combination of rate, safety, flexibility, and service quality relative to your specific financial needs.
Tax on FD Interest — What You Must Know
FD interest is fully taxable in India under the head "Income from Other Sources" in your Income Tax Return. It is added to your total income for the financial year and taxed at your applicable income tax slab rate. This means a person in the 30% tax bracket who earns ₹1 lakh in FD interest will pay ₹30,000 in tax on it, leaving an effective post-tax return of just 4.9% on a 7% FD. Contrast this with equity mutual fund Long Term Capital Gains, which are taxed at only 12.5% — and the structural tax disadvantage of FDs for high-income earners becomes clear. For investors in the 5% or 10% tax slab, the tax impact on FD returns is minimal and FDs remain a genuinely good investment. For those in the 20–30% slab, the post-tax FD return is significantly lower than the stated rate.
Banks deduct TDS (Tax Deducted at Source) at 10% on FD interest when the total interest credited by a single bank in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). This TDS is not the final tax — it is an advance payment. If your actual tax rate is higher than 10%, you must pay the difference when filing your ITR. If your total income is below the taxable threshold, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to your bank at the start of each financial year to instruct them not to deduct TDS. Many FD investors forget to submit these forms annually and unnecessarily lose cash to TDS that they later have to claim as a refund. Note that even if no TDS is deducted (because you submitted Form 15G/15H), you are still legally required to declare the interest income in your ITR.
Frequently Asked Questions
These calculations are for educational and informational purposes only. Please consult a qualified financial advisor before making any financial decisions.
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