FD Calculator India 2026 โ Fixed Deposit Interest Rate Calculator
Free FD interest calculator with 4 modes โ Maturity Calculator with year-by-year breakdown, Bank Rate Comparison (SBI, HDFC, ICICI, Axis, BOB + 7 more), TDS & Tax Impact analyser, and FD vs PPF/SCSS/MF/NPS comparison. Includes senior citizen rates, Section 80C tax-saver guide, and FD laddering strategy.
What Is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is one of the most popular and trusted savings instruments in India. When you open an FD, you deposit a lump sum amount with a bank or Non-Banking Financial Company (NBFC) for a fixed tenure at a predetermined interest rate. At the end of the tenure, you receive your principal plus the accumulated interest as the maturity amount.
FDs are classified as term deposits under the Reserve Bank of India (RBI) guidelines. They are considered one of India’s safest investment options because:
- Capital Protection — Your principal is guaranteed (no market risk)
- DICGC Insurance — Deposits up to ?5 lakh per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation (a subsidiary of the RBI)
- Guaranteed Returns — The interest rate is fixed at the time of deposit and does not change during the tenure, regardless of market conditions
- Flexible Tenure — Available from 7 days to 10 years, giving you full control over your investment horizon
India Context: As of March 2026, Indians hold approximately ?200 lakh crore in bank deposits, making FDs the single largest asset class in the country — larger than equity markets, gold, or real estate. Use our FD calculator above to plan your deposit strategy and compare rates across 12 banks instantly.
How Is FD Interest Calculated?
Indian banks use compound interest for cumulative FDs, calculated using the standard formula:
A = P × (1 + r/n)n×t
Where:
A = Maturity Amount (principal + interest)
P = Principal amount (your deposit)
r = Annual interest rate (as decimal; 7% = 0.07)
n = Compounding frequency per year (most Indian banks use n = 4 for quarterly compounding)
t = Tenure in years
Interest Earned = A − P
Where:
A = Maturity Amount (principal + interest)
P = Principal amount (your deposit)
r = Annual interest rate (as decimal; 7% = 0.07)
n = Compounding frequency per year (most Indian banks use n = 4 for quarterly compounding)
t = Tenure in years
Interest Earned = A − P
Worked Example — ?5 Lakh FD at 7% for 5 Years
| Parameter | Value |
|---|---|
| Principal (P) | ?5,00,000 |
| Rate (r) | 7% (0.07) |
| Compounding (n) | Quarterly (n = 4) |
| Tenure (t) | 5 years |
Calculation: A = 5,00,000 × (1 + 0.07/4)4×5 = 5,00,000 × (1.0175)20 = ?7,07,390
Interest Earned = ?2,07,390 on your ?5 lakh deposit over 5 years.
Interest Earned = ?2,07,390 on your ?5 lakh deposit over 5 years.
For comparison, simple interest would give: SI = 5,00,000 × 0.07 × 5 = ?1,75,000. Compound interest earns ?32,390 more (18.5% advantage) on the same deposit.
Cumulative vs Non-Cumulative FD
Banks offer two types of FDs based on how interest is handled:
| Feature | Cumulative FD | Non-Cumulative FD |
|---|---|---|
| Interest Handling | Reinvested (compounded quarterly) | Paid out periodically (monthly/quarterly/half-yearly/annually) |
| Interest Received | Only at maturity | At chosen intervals during tenure |
| Maturity Amount | Higher (due to compounding) | Only principal returned |
| Total Returns | Higher (interest-on-interest) | Lower (no compounding benefit) |
| Best For | Wealth building, salaried individuals | Retirees who need regular income |
| Example: ?10L at 7%, 5 yrs | Maturity: ?14,14,778 | Monthly payout: ?5,833 + ?10L at maturity |
Tip: If you don’t need regular income, always choose a cumulative FD — your effective return is higher because interest earns interest. Compare both options using the FD Maturity mode in our calculator above. For SWP-based monthly income from mutual funds, see our SWP Calculator.
FD Interest Rates in India — March 2026
Here are the current Fixed Deposit rates from major Indian banks for retail deposits (below ?3 Crore) as of March 2026:
| Bank | 1 Year | 3 Years | 5 Years | Senior Citizen (5Y) |
|---|---|---|---|---|
| SBI | 6.80% | 6.75% | 6.50% | 7.00% |
| HDFC Bank | 6.60% | 7.00% | 7.00% | 7.50% |
| ICICI Bank | 6.70% | 7.00% | 7.00% | 7.50% |
| Axis Bank | 6.70% | 7.10% | 7.00% | 7.75% |
| Kotak Mahindra | 6.50% | 7.10% | 6.70% | 7.20% |
| Bank of Baroda | 6.85% | 7.05% | 6.50% | 7.15% |
| Punjab National Bank | 6.80% | 7.00% | 6.50% | 7.00% |
| Canara Bank | 6.85% | 7.00% | 6.70% | 7.20% |
| Post Office TD | 6.90% | 7.10% | 7.50% | 7.50% |
| AU Small Finance Bank | 7.25% | 7.50% | 7.25% | 7.75% |
| Ujjivan SFB | 7.40% | 7.90% | 7.60% | 8.10% |
Note: Rates are indicative and subject to change. Banks revise FD rates based on RBI repo rate decisions and liquidity conditions. Small Finance Banks (SFBs) offer higher rates but may carry slightly higher perceived risk. All listed banks are covered under DICGC insurance up to ?5 lakh. Use our Bank Comparison mode above to see exact maturity amounts.
Special Rate Schemes: Many banks offer limited-period special FD schemes with higher rates for specific tenures — BOB Square Drive (444 days), SBI Amrit Vrishti, and HDFC special tenures. Check bank websites for current special offers.
Senior Citizen FD Benefits
Indian banks provide preferential treatment to senior citizens (aged 60 and above) for Fixed Deposits:
- Higher Interest Rates — Typically 0.25% to 0.50% above the general public rate. Some banks offer up to 0.75% extra for super senior citizens (80+)
- Higher TDS Threshold — TDS is deducted only when annual FD interest exceeds ?1,00,000 (vs ?50,000 for others)
- Form 15H — Seniors can submit Form 15H to request no TDS if total income is below taxable limit
- SCSS Alternative — The Senior Citizens Savings Scheme (SCSS) offers 8.2% p.a. with quarterly payouts and Section 80C benefit — often better than bank FDs. Use our Pension Calculator to compare
| Bank | General Rate (5Y) | Senior Citizen Rate (5Y) | Extra Benefit |
|---|---|---|---|
| SBI | 6.50% | 7.00% | +0.50% |
| HDFC Bank | 7.00% | 7.50% | +0.50% |
| Axis Bank | 7.00% | 7.75% | +0.75% |
| Ujjivan SFB | 7.60% | 8.10% | +0.50% |
TDS on Fixed Deposit Interest — Rules for 2026
Banks are required to deduct Tax Deducted at Source (TDS) on FD interest under Section 194A of the Income Tax Act:
| Parameter | Regular Citizen | Senior Citizen (60+) |
|---|---|---|
| TDS Threshold | ?50,000 per FY | ?1,00,000 per FY |
| TDS Rate (with PAN) | 10% | 10% |
| TDS Rate (without PAN) | 20% | 20% |
| Declaration Form | Form 15G / Form 121 | Form 15H / Form 121 |
| Condition for no TDS | Total income below taxable limit | Total income below taxable limit |
Important: TDS is per bank, not per FD. If you have 3 FDs in SBI earning ?20K, ?18K, and ?15K interest = ?53K total — TDS of 10% will be deducted on the entire ?53K. Strategy: Spread FDs across multiple banks to stay below the threshold at each bank.
Use the TDS & Tax mode in our calculator above to see exact TDS and post-tax returns. Check your tax slab with our Income Tax Calculator.
Use the TDS & Tax mode in our calculator above to see exact TDS and post-tax returns. Check your tax slab with our Income Tax Calculator.
Tax-Saver FD Under Section 80C
A Tax-Saver Fixed Deposit is a special 5-year FD that qualifies for deduction under Section 80C of the Income Tax Act:
| Feature | Tax-Saver FD | Regular FD |
|---|---|---|
| Section 80C Deduction | Yes — up to ?1.5 lakh/year | No |
| Lock-in Period | 5 years (strict) | No lock-in |
| Premature Withdrawal | Not allowed | Allowed (with penalty) |
| Interest Taxability | Fully taxable at slab rate | Fully taxable at slab rate |
| Joint Holding | Allowed (only first holder gets 80C) | Allowed |
| Auto-Renewal | No | Yes (optional) |
Comparison with PPF: While Tax-Saver FDs offer 80C benefit, the interest is taxable. PPF offers EEE status (investment, interest, AND maturity all tax-free). For individuals in the 30% slab, a 7% tax-saver FD gives ~4.9% post-tax vs PPF’s 7.1% tax-free. PPF wins for long-term tax-efficient savings. For more 80C options, check our Income Tax Calculator.
FD Laddering Strategy — Optimise Liquidity & Returns
FD laddering is a smart investment strategy where you spread your deposit across multiple FDs with staggered maturity dates:
How It Works — ?10 Lakh Example
| FD # | Amount | Tenure | Rate | Maturity Date |
|---|---|---|---|---|
| FD-1 | ?2,00,000 | 1 Year | 6.80% | March 2027 |
| FD-2 | ?2,00,000 | 2 Years | 7.00% | March 2028 |
| FD-3 | ?2,00,000 | 3 Years | 7.10% | March 2029 |
| FD-4 | ?2,00,000 | 4 Years | 7.05% | March 2030 |
| FD-5 | ?2,00,000 | 5 Years | 7.00% | March 2031 |
Benefits:
- Annual Liquidity — An FD matures every year, reducing premature withdrawal penalties
- Rate Optimization — When FD-1 matures in 2027, you reinvest at the prevailing 5-year rate (which may be higher if RBI has increased rates)
- TDS Management — Interest earned on each FD stays lower, potentially below the TDS threshold per bank
- DICGC Maximization — By spreading across different banks, you maximize the ?5L deposit insurance per bank
Pro Tip: For larger sums (?25L+), combine laddering with multi-bank distribution: 5 banks × 5 tenures = 25 FDs, each within ?5L DICGC limit. This gives you maximum insurance coverage, annual liquidity, and rate diversification. Use our Compound Interest Calculator to model each FD’s growth independently.
FD vs PPF vs SCSS vs SIP — Comprehensive Comparison
How does an FD stack up against other popular Indian investment options?
| Feature | Bank FD | PPF | SCSS | Equity SIP |
|---|---|---|---|---|
| Interest Rate | 6.50–7.50% | 7.10% | 8.20% | ~12% (historical avg) |
| Compounding | Quarterly | Annually | Quarterly | Daily (NAV-based) |
| Tenure | 7 days–10 yrs | 15 years | 5 years | Flexible |
| Tax on Returns | Fully taxable | EEE (tax-free) | Fully taxable | 12.5% LTCG (>?1.25L) |
| Section 80C | 5-yr tax-saver only | Yes (up to ?1.5L) | Yes | Only ELSS |
| Liquidity | Anytime (penalty) | Partial from Year 7 | After 1 year (penalty) | Anytime (exit load) |
| Risk | Very Low | Zero (sovereign) | Zero (sovereign) | High (market-linked) |
| DICGC Cover | Up to ?5L | Sovereign guarantee | Sovereign guarantee | SEBI regulated |
| Post-Tax Return (30% slab) | ~4.9% | 7.1% | ~5.7% | ~10.5% |
Verdict: For guaranteed, tax-free returns: PPF and Sukanya Samriddhi are unmatched. For regular fixed income (retirees): SCSS at 8.2% with quarterly payouts โ see our Pension Calculator. For wealth creation: Equity SIPs outperform FDs over 10+ year horizons but carry market risk. FDs remain ideal for short-to-medium term parking of funds, emergency fund, and capital preservation.
Premature Withdrawal & Penalty Rates
If you need to break your FD before maturity, here’s what to expect:
| Bank | Penalty | Non-Callable FDs |
|---|---|---|
| SBI | 0.50% below the card rate for the period held | Not offered |
| HDFC Bank | 1.00% below the applicable rate | Not offered |
| ICICI Bank | 0.50–1.00% depending on tenure | Not offered |
| Bank of Baroda | 1.00% for general; BOB Advantage FD is non-callable | BOB Advantage FD |
| Post Office TD | Savings account rate for premature closure in first year | Not applicable |
Strategy: Instead of one large FD, split into smaller FDs (FD laddering). If you need funds urgently, break only one small FD instead of the entire deposit. This minimizes penalty impact. Also, some banks offer sweep-in FDs linked to your savings account — the bank automatically breaks FDs in ?1,000 denominations when your savings balance falls short.
How to Open an FD Online in India
Most major Indian banks allow online FD booking through their net banking portal or mobile app:
- Log in to your bank’s internet banking (SBI → YONO, ICICI → iMobile, HDFC → NetBanking/PayZapp)
- Navigate to Deposits โ Fixed Deposit โ Open New FD
- Choose deposit type (Cumulative/Non-Cumulative), enter amount, select tenure
- Set nomination (mandatory for tax-saver FDs)
- Review the interest rate, maturity date, maturity amount, and confirm
Documents needed: Existing savings account with completed KYC, PAN card (for TDS compliance), Aadhaar (for e-KYC verification). Some banks like AU SFB and Ujjivan SFB offer video KYC-based FD opening without visiting a branch.
7 Common Mistakes When Investing in Fixed Deposits
- Not comparing rates across banks — Even a 0.50% difference on ?10 lakh over 5 years is ?28,000+ in extra interest. Use our Bank Comparison mode above.
- Ignoring post-tax returns — A 7% FD in the 30% tax bracket gives only ~4.9% post-tax, which may not beat inflation (~5–6%). Use our TDS & Tax mode to see the real picture. Check your slab with our Income Tax Calculator.
- Putting all money in one FD — Use FD laddering (see above) for better liquidity, rate optimization, and DICGC coverage.
- Not claiming 80C on tax-saver FDs — If you have a 5-year FD, make sure you claim the Section 80C deduction in your ITR.
- Forgetting to submit Form 15G/15H — If your total income is below the taxable limit, submit the form at the start of each financial year to avoid unnecessary TDS.
- Auto-renewal at the old rate — Many banks auto-renew FDs at the then-prevailing rate, which may be lower. Review and rebook manually for the best available rate/scheme.
- Ignoring inflation — A 6.5% FD in the 30% slab gives ~4.55% post-tax and −1.45% real return after 6% inflation. For inflation-beating returns, consider PPF or equity SIPs.
Related Calculators & Tools
- Compound Interest Calculator — Understand the CI formula that powers FD interest calculations. Includes FD comparison mode with SBI/HDFC/ICICI rates.
- PPF Calculator — Calculate 15-year PPF maturity at 7.1% with tax-free EEE status. The best tax-free alternative to FDs.
- SIP Calculator — Compare equity mutual fund SIP returns with FD growth over 10+ year horizons.
- Sukanya Samriddhi Calculator — 8.2% tax-free returns for girl child savings — the highest guaranteed return in India.
- Pension Calculator — Plan retirement with SCSS (8.2%), NPS, and EPS pension estimates.
- Income Tax Calculator — Find your exact tax slab to calculate post-tax FD returns accurately.
- SWP Calculator — Compare SWP from mutual funds with non-cumulative FD monthly payouts.
- Lumpsum Calculator — Compare one-time mutual fund investment returns with FD maturity.
- Crorepati Calculator — Can you reach ?1 Crore with FD laddering? Find out.
- XIRR Calculator — Calculate the true return on FDs with premature withdrawal or partial breakage using XIRR.