Ad — 728×90

FD Calculator

Calculate maturity amount and interest earned on your fixed deposit.

₹
%
years

Results

Maturity Amount₹1.41 L
Total Interest Earned₹41,478
Deposit Amount₹1.00 L
Breakdown
Deposit
₹1,00,000
Interest
₹41,478
Ad — 300×250

What is FD?

A Fixed Deposit (FD) is one of the safest and most popular investment options in India where you deposit a lump sum with a bank for a fixed period at a guaranteed interest rate. Unlike mutual funds or stocks, FD returns are predictable — you know exactly how much you will get at maturity. This makes FDs ideal for conservative investors, emergency funds, and short-term goals.

Banks in India compound FD interest quarterly (every 3 months), which means you earn interest on previously earned interest. This quarterly compounding gives slightly higher returns than simple annual interest. For example, ₹1,00,000 at 7% simple interest for 5 years gives ₹35,000 interest, but with quarterly compounding, you earn ₹41,478 — that is ₹6,478 extra from compounding alone.

FD rates in India vary significantly across banks. Large banks like SBI, HDFC, ICICI typically offer 6.5-7.5% for general citizens. Small finance banks like AU Small Finance, Ujjivan, Equitas, and Jana often offer 7.5-8.5%. Senior citizens (60+) get an additional 0.25-0.50% at most banks. Corporate FDs from companies like Bajaj Finance, HDFC Ltd, and Shriram Finance offer higher rates (7.5-8.5%) but carry slightly higher risk than bank FDs.

Important tax consideration: FD interest is fully taxable under your income tax slab — unlike PPF or ELSS where the interest/gains can be tax-free. TDS of 10% is automatically deducted by the bank if annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). If you are in the 30% tax bracket, your effective FD return of 7% becomes only 4.9% after tax.

For tax-free alternatives with similar safety, consider PPF (7.1%, fully tax-free, 15-year lock-in) or Sukanya Samriddhi Yojana (8.2%, tax-free, for girl child). For higher returns with moderate risk, check our SIP Calculator.

Want bank-specific FD rates? Try our SBI FD Calculator or Post Office FD Calculator.

Formula

For quarterly compounding (standard in Indian banks):

Maturity Amount = P × (1 + r/4)^(4×t)

Where: - P = Principal deposit amount - r = Annual interest rate (as decimal) - t = Tenure in years - 4 = Number of compounding periods per year (quarterly)

Worked Example — ₹5,00,000 FD at 7% for 3 years: Maturity = ₹5,00,000 × (1 + 0.07/4)^(4×3) Maturity = ₹5,00,000 × (1.0175)^12 Maturity = ₹5,00,000 × 1.2314 Maturity = ₹6,15,699 Interest Earned = ₹1,15,699

FD maturity reference for ₹1,00,000: - At 6.5% for 3 years: ₹1,21,291 - At 7.0% for 3 years: ₹1,23,144 - At 7.5% for 5 years: ₹1,44,995 - At 8.0% for 5 years: ₹1,48,595 - At 7.0% for 10 years: ₹2,00,160 (your money doubles!)

Rule of 72: To estimate when your FD doubles, divide 72 by the interest rate. At 7%, your FD doubles in approximately 72/7 = 10.3 years.

How to use this FD Calculator?

1. Enter Deposit Amount: Type the lump sum you want to invest. Minimum FD in most banks is ₹1,000-10,000.

2. Set Interest Rate: Enter the rate offered by your bank. Check the bank's website for latest rates. Senior citizens should add 0.25-0.50% to the regular rate.

3. Choose Tenure: Select in years. FD tenures range from 7 days to 10 years. Most popular tenures: 1 year, 2 years, 3 years, and 5 years (tax-saving FD).

4. Read Results: See your maturity amount, total interest earned, and the original deposit for comparison.

Pro tip: Compare your FD's after-tax returns with other options. If you are in the 30% tax bracket, a 7% FD gives only 4.9% effective return — less than PPF's 7.1% which is completely tax-free.

Frequently asked questions

Is FD interest taxable in India?
Yes, FD interest is fully taxable under your income tax slab rate (5%, 10%, 15%, 20%, or 30%). TDS of 10% is deducted by the bank if annual interest from all FDs exceeds ₹40,000 (₹50,000 for senior citizens). To avoid TDS, submit Form 15G (under 60) or Form 15H (60+) if your total income is below the taxable limit.
Can I break an FD before maturity?
Yes, most banks allow premature withdrawal with a penalty of 0.5-1% on the applicable rate for the actual period. Some banks like Kotak and IDFC First offer sweep-in FDs that allow partial withdrawal without penalty on the remaining amount.
Which bank gives the highest FD rate in India?
Small finance banks typically offer the highest rates: AU Small Finance Bank (7.5-8%), Ujjivan SFB (7.5-8.25%), Jana SFB (7.5-8.2%). Among large banks, SBI (6.8%), HDFC (7.0%), ICICI (7.0%). Corporate FDs: Bajaj Finance (7.4-8.1%), Shriram Finance (7.5-8.4%). Always check that deposits up to ₹5 Lakhs are insured by DICGC.
FD vs PPF — which is better?
PPF offers 7.1% tax-free returns (EEE status) with 15-year lock-in. FD offers 6.5-8% but interest is fully taxable. For someone in 30% tax bracket: FD effective return is ~4.9-5.6% vs PPF 7.1%. PPF is clearly better for long-term, but FD is better for short-term needs (1-3 years) and amounts above ₹1.5L/year (PPF's annual limit).
Are bank FDs safe? What if the bank fails?
Bank FDs are very safe. Deposits up to ₹5 Lakhs per depositor per bank are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation). For amounts above ₹5L, spread your deposits across multiple banks. No major scheduled commercial bank has failed in India in recent decades.
What is a tax-saving FD?
A 5-year FD that qualifies for tax deduction under Section 80C (Old Regime only) up to ₹1.5 Lakhs per year. The FD has a lock-in period of 5 years — no premature withdrawal allowed. The interest earned is still taxable. It is offered by all scheduled banks at regular FD rates.
Ad — 728×90

Related calculators

EMI CalculatorSIP CalculatorIncome Tax CalculatorHome Loan EMI Calculator