FD Calculator
Calculate your Fixed Deposit maturity amount and interest earned
🏦 Fixed Deposit Details
📖 Complete Guide to Fixed Deposit Investment in India
A Fixed Deposit (FD) is one of the safest investment options in India, offering guaranteed returns at a fixed interest rate. Banks, NBFCs, and post offices offer FDs with tenures ranging from 7 days to 10 years. FDs are ideal for risk-averse investors who want capital protection with predictable returns.
📊 FD Interest Rates — Bank-wise Comparison
| Bank | 1 Year | 3 Years | 5 Years | Senior Citizen (+) |
|---|---|---|---|---|
| SBI | 6.80% | 7.00% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.10% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.10% | 7.00% | +0.50% |
| Post Office | 6.90% | 7.10% | 7.50% | N/A |
| AU Small Finance | 7.50% | 7.50% | 7.25% | +0.50% |
Note: Rates are indicative and may vary. Check with your bank for latest rates.
📐 FD Interest Calculation Formula
Maturity Amount = P × (1 + r/n)^(n×t)
- P = Principal (deposit amount)
- r = Annual interest rate (as decimal)
- n = Compounding frequency (4 for quarterly)
- t = Tenure in years
Example: ₹5,00,000 at 7% for 5 years (quarterly compounding) = ₹5,00,000 × (1 + 0.07/4)^(4×5) = ₹7,07,393. Interest earned: ₹2,07,393.
🆚 FD vs RD vs SIP — Which to Choose?
| Factor | FD | RD | SIP (Mutual Fund) |
|---|---|---|---|
| Investment Type | One-time lumpsum | Monthly fixed amount | Monthly in equity/debt MF |
| Returns | 6-8% guaranteed | 6-8% guaranteed | 10-15% (not guaranteed) |
| Risk | Zero (up to ₹5L insured) | Zero | Market risk |
| Tax | Interest taxed at slab | Interest taxed at slab | 10% LTCG above ₹1L |
| Best For | Short-term, lumpsum | Monthly savings goal | Long-term wealth |
💡 FD Investment Tips
- Ladder your FDs: Instead of one large FD, split into multiple FDs with different tenures (1yr, 2yr, 3yr) for better liquidity
- Check small finance banks: They offer 0.5-1.5% higher rates than large banks with same DICGC insurance coverage
- Use Form 15G/15H: Submit to your bank to avoid TDS if your total income is below taxable limit
- Consider Recurring Deposit if you don't have a lumpsum but want guaranteed returns
- Compare with SIP investments for long-term goals — equity SIPs significantly outperform FDs over 5+ years
❓ Frequently Asked Questions
Q: What is an FD Calculator?
A: An FD Calculator estimates the maturity amount and interest earned on a Fixed Deposit. Enter principal amount, interest rate, tenure, and compounding frequency to instantly see your FD maturity value, total interest earned, and effective yield.
Q: How is FD interest calculated?
A: FD interest uses compound interest: A = P(1 + r/n)^(nt), where P = principal, r = annual rate, n = compounding frequency (usually quarterly for banks), t = tenure in years. For example, ₹1,00,000 at 7% for 5 years with quarterly compounding gives ₹1,41,478.
Q: Which bank gives the highest FD rate in India?
A: Small finance banks like AU, Ujjivan, and Equitas typically offer 7-9% FD rates. Large banks like SBI, HDFC, and ICICI offer 6-7%. Post office FD offers 7.5% for 5 years. Senior citizens get an additional 0.25-0.50% premium at most banks.
Q: What is the difference between cumulative and non-cumulative FD?
A: Cumulative FD reinvests interest and pays the total at maturity — ideal for wealth building. Non-cumulative FD pays interest monthly/quarterly — ideal for regular income. Cumulative FDs earn more due to compounding effect.
Q: Is FD interest taxable?
A: Yes, FD interest is fully taxable at your income tax slab rate. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below taxable limit.
Q: What is the FD rate for senior citizens?
A: Senior citizens (60+) get 0.25-0.50% higher FD rates at most banks. For example, if the regular rate is 7%, seniors may get 7.50%. Some banks like SBI and HDFC offer special senior citizen FD schemes with even higher rates.
Q: Can I break my FD before maturity?
A: Yes, premature withdrawal is allowed but banks charge a penalty of 0.5-1% (deducted from the applicable rate). Some banks offer loan against FD at 1-2% above FD rate, which is a better option than breaking the FD.
Q: FD vs RD — which is better?
A: FD is better if you have a lumpsum to invest (higher total interest due to full principal earning from day 1). RD is better if you want to save monthly from salary. Both offer similar interest rates and guaranteed returns.
Q: What is a tax-saving FD?
A: A 5-year tax-saving FD qualifies for ₹1.5 lakh deduction under Section 80C. However, it has a 5-year lock-in (no premature withdrawal). Interest is still taxable. Available at all major banks with rates similar to regular FDs.
Q: FD vs SIP — which gives better returns?
A: Equity SIPs historically give 12-15% CAGR vs 6-7% from FDs over 10+ years. However, FDs offer guaranteed returns with zero risk, while SIPs carry market risk. FDs are better for short-term goals (1-3 years), SIPs for long-term (5+ years).
Q: How does TDS work on FD interest?
A: Banks deduct TDS at 10% when total FD interest across all branches exceeds ₹40,000/year (₹50,000 for seniors). If you don't provide PAN, TDS is 20%. File ITR to claim refund if your total tax liability is lower than TDS deducted.
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