FD Calculator
Calculate your Fixed Deposit maturity amount and interest earned. Adjust principal, rate, tenure, and compounding frequency.
FD Calculator
How to Use the FD Calculator
Enter your deposit amount, the annual interest rate offered by your bank or NBFC, tenure in years, and compounding frequency. The calculator instantly shows maturity value and total interest earned — all in your browser, with no data stored.
- Principal amount — lump sum you deposit (₹1,000 to ₹1 crore)
- Annual interest rate — FD rate from your bank (typically 6.5%–8.5% in 2026)
- Tenure — lock-in period in years (7 days to 10 years for regular FDs)
- Compounding — quarterly compounding usually beats annual for the same rate
FD Interest Formula Explained
Maturity Amount (A) = P × (1 + r/n)nt
Interest Earned = A − P
P = principal, r = annual rate (decimal), n = compounding per year, t = years
Example: ₹5,00,000 at 7.5% for 3 years with quarterly compounding → maturity ≈ ₹6,24,000 (interest ≈ ₹1,24,000).
FD Maturity Examples (7.5% p.a., Quarterly Compounding)
| Deposit | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| ₹1,00,000 | ₹1.08 L | ₹1.25 L | ₹1.45 L |
| ₹5,00,000 | ₹5.39 L | ₹6.24 L | ₹7.23 L |
| ₹10,00,000 | ₹10.77 L | ₹12.48 L | ₹14.46 L |
Illustrative only. Actual bank rates and TDS may differ.
FD Tips for Indian Investors
- Compare rates across SBI, HDFC, ICICI, and small finance banks — spreads can be 0.5–1% for the same tenure.
- Senior citizens typically earn 0.25–0.50% extra; always declare age for the correct rate.
- Tax-saving FD (5-year lock-in) qualifies under Section 80C but interest is still taxable.
- Ladder FDs across maturities (1yr, 2yr, 3yr) to balance liquidity and rate lock-in.
- For inflation-beating returns over 7+ years, consider SIP in equity mutual funds alongside FDs for stability.
Frequently Asked Questions
How is FD interest calculated?
FD interest is calculated using the compound interest formula: A = P(1 + r/n)^(nt), where P is your principal amount, r is the annual interest rate, n is the compounding frequency (quarterly = 4, annually = 1), and t is the tenure in years.
What is the best compounding frequency for FD?
Quarterly compounding gives higher returns than annual compounding for the same interest rate. Most banks in India offer quarterly compounding on fixed deposits by default.
Is FD interest taxable in India?
Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can claim a refund while filing your ITR if your total income is below the taxable limit.
What is the current FD interest rate in India 2026?
As of 2026, major banks offer FD rates between 6.5% to 8% for general citizens and 7% to 8.5% for senior citizens. Small finance banks and NBFCs may offer slightly higher rates.
How to Use This FD Calculator
Enter your principal amount, the annual interest rate offered by your bank, the tenure in years, and select the compounding frequency. The calculator will show you the total maturity amount and interest earned.
Benefits of Fixed Deposits
- Guaranteed returns with zero market risk
- Flexible tenure from 7 days to 10 years
- Senior citizens get 0.25% to 0.50% extra interest
- Tax-saving FD under Section 80C (5-year lock-in)
Want higher returns with some risk? Consider SIP investing in mutual funds which historically deliver 12-15% over 10+ years vs 6-8% for FDs. Browse top mutual funds on IPOFins.
Fixed Deposit (FD) calculator — India 2026
Bank fixed deposits remain popular for capital preservation. Senior citizens typically earn 0.25–0.50% extra. Major banks (SBI, HDFC, ICICI) offer 6.5–7.5% on 1–3 year tenures as of 2026; small finance banks may offer higher rates with slightly higher risk — always check DICGC insurance coverage (up to ₹5 lakh per bank per depositor).
FD interest can be cumulative (reinvested) or paid out monthly/quarterly. TDS applies if annual interest exceeds ₹40,000 (₹50,000 for seniors). Interest is taxed at your income slab rate — in the 30% bracket, a 7% FD yields ~4.9% post-tax.
FD vs debt mutual funds
Debt mutual funds offer indexation benefit on long-term gains (if held >2 years in some categories — check current tax rules) and better liquidity. FDs suit definite short-term goals (1–3 years) where capital safety is paramount. For emergency funds, consider sweep-in FDs or liquid mutual funds.
Laddering strategy
Split capital across 1-year, 2-year, and 3-year FDs maturing in sequence to balance liquidity and rate-lock benefit. When each FD matures, reinvest at prevailing rates if you do not need the cash. This calculator helps project maturity values for each ladder rung.