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FD Calculator – Calculate Fixed Deposit Maturity Amount
About this calculator
Use the FD Calculator – Calculate Fixed Deposit Maturity Amount to quickly estimate results. Enter the inputs and review the calculated output below. This tool is for guidance and educational purposes only.
More about this tool
What is Fixed Deposit?
Fixed Deposit (FD) is a financial instrument offered by banks and financial institutions. You deposit a lump sum for a fixed period (7 days to 10 years) at a fixed interest rate. FDs are extremely safe, backed by DICGC insurance up to Rs. 5 lakh. Ideal for risk-averse investors seeking guaranteed returns. Use this FD calculator to compare maturity values across different compounding frequenci (truncated)
How FD Interest is Calculated
FD interest can be simple or compounded. For a simple-interest FD, Interest = P × R × T / 100. For a compounded FD, Maturity = P × (1 + r/n)^(n×t), where r is the annual rate, n is the compounding frequency (quarterly, monthly, etc.), and t is years. Most bank FDs in India compound quarterly, so for the same rate a compounded FD pays more than a simple-interest one. Use this calculator to compare both and choose the best option.
Current FD Interest Rates in India
Regular FD rates in 2026 range from 5.5% to 7.5% for tenures between 1 and 5 years. Senior citizens earn an extra 0.25%–0.75%. Small finance banks offer 7.5%–9% on select tenures, though deposit safety is insured only up to Rs. 5 lakh per bank via DICGC. Corporate FDs from companies like Bajaj Finance, Shriram, and HDFC Ltd. offer 7.5%–8.5% but carry credit risk.
Simple vs Cumulative FDs
A cumulative FD reinvests interest, and you receive the full maturity amount at the end. A non-cumulative FD pays interest monthly, quarterly, half-yearly, or yearly — useful for retirees who need regular income. Cumulative FDs earn more overall because of compounding. Choose non-cumulative only if you actually need the periodic payout to meet expenses.
Senior Citizen FD Benefits
Indian residents aged 60 and above receive an extra 0.25%–0.75% over the standard FD rate. Several banks like SBI and HDFC run special senior-citizen schemes (SBI Amrit Kalash, HDFC Senior Citizen Care FD) offering an additional 0.10%–0.25% on top. Under Section 80TTB, interest income up to Rs. 50,000 per financial year is tax-free for senior citizens.
Tax-Saving 5-Year FD
A tax-saving FD with a locked 5-year tenure qualifies for deduction up to Rs. 1.5 lakh under Section 80C. Premature withdrawal is not allowed. Rates are usually 0.25%–0.5% lower than regular FDs. Interest earned is taxable. Despite the lower rate, it is a good option for risk-averse tax-payers seeking 80C deductions without market exposure.
Premature Withdrawal Rules
Most banks allow premature withdrawal after 7 days, but impose a penalty of 0.5%–1% on the applicable rate for the actual tenure completed. For instance, breaking a 3-year FD after 1 year gets you the 1-year rate minus 0.5%–1% penalty. Some banks offer FDs with no premature-withdrawal penalty but at a slightly lower rate. Choose based on how likely you are to need the funds early.
TDS on Fixed Deposits
Banks deduct 10% TDS if total FD interest across all branches of one bank exceeds Rs. 40,000 in a financial year (Rs. 50,000 for senior citizens). If you do not submit PAN, TDS is 20%. If your total annual income is below the tax-free limit, submit Form 15G (below 60) or Form 15H (60 and above) at the start of the year to avoid TDS. TDS is adjusted against your final tax liability when filing ITR.
FD vs Other Investment Options
FDs offer capital safety and guaranteed returns but are fully taxed. Debt mutual funds offer similar returns with slightly higher flexibility and tax efficiency over long periods. Equity mutual funds offer far higher long-term returns at higher risk. PPF and Sukanya Samriddhi offer tax-free returns but with 15-year and 21-year lock-ins. Use FDs for short- to medium-term savings (1–5 years) and emergency funds, not long-term wealth creation.
Bank FD vs Corporate FD
Bank FDs are insured up to Rs. 5 lakh per depositor per bank under DICGC. Corporate FDs from AAA-rated companies like Bajaj Finance, HDFC Ltd., and Mahindra Finance offer 0.75%–1.5% higher rates but carry credit risk. Never invest in unrated or low-rated corporate FDs, however attractive the rate. A safe strategy is to split corpus — keep 80% in bank FDs for safety, 20% in AAA corporate FDs for yield.
How to Maximize FD Returns
Ladder your FDs — split the total amount into FDs of different maturities (1, 2, 3, 5 years) so one FD matures every year, giving liquidity without breaking others. Use cumulative FDs for compounding. Compare rates across banks and small finance banks before investing. Submit 15G/15H where eligible to avoid TDS. Renew maturing FDs promptly rather than letting them auto-renew at the default rate.
Frequently asked questions
What is the current FD interest rate in India?
Regular FD rates in 2026 range from 5.5% to 7.5% for tenures of 1 to 5 years. Senior citizens earn an extra 0.25% to 0.75%. Small finance banks offer 7.5% to 9% on select tenures.
How is FD interest compounded?
Most bank FDs in India compound interest quarterly. A cumulative FD reinvests the interest and pays the total at maturity. A non-cumulative FD pays interest monthly, quarterly, half-yearly, or yearly without reinvesting.
Is FD interest tax-free?
No. FD interest is fully taxable as Income from Other Sources. Banks deduct 10% TDS if total FD interest across their branches exceeds Rs. 40,000 per year (Rs. 50,000 for senior citizens under Section 80TTB).
Can I break my FD before maturity?
Yes, most banks allow premature withdrawal after 7 days with a penalty of 0.5% to 1% on the applicable rate. Tax-saving 5-year FDs under Section 80C cannot be broken before maturity.