FD Calculator
Estimate your fixed deposit maturity amount. See how your lump sum grows at different interest rates and compounding frequencies.
Deposit
₹1 L
Interest Earned
₹41,478
Maturity Amount
₹1.41 L
Interest Breakdown
FD Calculator – Fixed Deposit Returns Calculator
What is a Fixed Deposit?
A Fixed Deposit (FD) is one of India's most popular and safest investment options. You deposit a lump sum with a bank or NBFC for a fixed tenure at a predetermined interest rate. The interest is compounded (typically quarterly) and paid at maturity or periodically, depending on the FD type.
FDs are ideal for conservative investors who want guaranteed returns without market risk. They're also useful for parking emergency funds or short-term savings.
How Does the FD Calculator Work?
The FD calculator uses the compound interest formula with quarterly compounding (the standard for most Indian banks): A = P × (1 + r/4)^(4×t), where P is the deposit amount, r is the annual interest rate, and t is the tenure in years.
For example, a ₹1,00,000 FD at 7% for 5 years with quarterly compounding matures to approximately ₹1,41,477 — earning ₹41,477 in interest.
FD Interest Rates in India (2025)
FD rates vary by bank, tenure, and depositor type (senior citizens typically get 0.25–0.50% extra). As of 2025, major banks offer 6.5–7.5% for general depositors and 7–8% for senior citizens on 1–5 year FDs. Small finance banks and NBFCs may offer higher rates (8–9%) but carry slightly more risk.
Always compare FD rates across banks before investing. Even a 0.5% difference on a large deposit can mean thousands of rupees in additional interest.
Tax on Fixed Deposit Interest
FD interest is fully taxable as "Income from Other Sources" at your slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). If your total income is below the taxable limit, submit Form 15G/15H to avoid TDS.
For tax efficiency, consider tax-saving FDs under Section 80C (5-year lock-in) which offer deduction up to ₹1.5 lakh on the principal, though interest is still taxable.
Frequently Asked Questions
Most Indian banks compound FD interest quarterly. Some NBFCs and cooperative banks may compound monthly or half-yearly. Our calculator defaults to quarterly compounding but supports all frequencies.
Yes, but premature withdrawal usually attracts a penalty (0.5–1% lower interest rate). Some banks offer sweep-in FDs or partial withdrawal facilities. Consider a ladder strategy — splitting your amount across multiple FDs with different maturities — for liquidity flexibility.
Bank FDs up to ₹5 lakh per depositor per bank are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation). NBFC and company FDs are not insured. Always check the credit rating (AAA/FAAA) before investing in non-bank FDs.
Most banks allow FDs from ₹1,000 to ₹5 crore. There's no legal maximum, but amounts above ₹5 crore may get negotiated rates. For DICGC insurance coverage, keep deposits under ₹5 lakh per bank. If you have more, spread across multiple banks for full insurance coverage.
A 5-year tax-saving FD qualifies for Section 80C deduction up to ₹1.5 lakh on the principal. It has a mandatory 5-year lock-in with no premature withdrawal. The interest, however, is still fully taxable. It's useful for people in the 20–30% tax bracket who want guaranteed returns with tax benefits.
Senior citizens (60+) typically get 0.25–0.50% higher FD rates than general depositors. Some banks like SBI, HDFC, and ICICI offer special senior citizen FD schemes with even higher rates (up to 7.75–8%). If both spouses are senior citizens, each can get the higher rate on their individual FDs.
An FD ladder splits your investment across multiple FDs with staggered maturities (e.g., 1-year, 2-year, 3-year, 5-year). As each FD matures, you reinvest at the longest rung. This provides liquidity, captures rising interest rates, and avoids locking everything at one rate. It's ideal for large FD portfolios.
Yes, most banks offer loans against FDs at 1–2% above the FD rate (typically 8–10%). You can borrow 85–95% of the FD value. This is cheaper than personal loans and doesn't break your FD. The FD continues earning interest while you repay the loan. It's a smart option for short-term liquidity needs.
FDs offer two payout options: cumulative (interest reinvested, paid at maturity — higher total returns) and non-cumulative (interest paid monthly/quarterly/half-yearly — regular income). Choose cumulative for growth and non-cumulative if you need regular income, like during retirement.