Free Online FD Calculator

A Fixed Deposit is a savings instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. An FD calculator uses the compound interest formula A = P(1 + r/n)^(nt) where P is the principal, r is the annual rate, n is the compounding frequency, and t is the tenure in years. It instantly shows you the maturity amount and total interest earned.

FD interest in India is typically compounded quarterly by most banks. The formula is A = P(1 + r/n)^(nt). For example, Rs 1,00,000 at 7% for 3 years compounded quarterly: A = 1,00,000 x (1 + 0.07/4)^(4x3) = Rs 1,23,144. The interest earned is Rs 23,144. Some banks offer monthly or semi-annual compounding which slightly changes the final amount.

Simple interest is calculated only on the principal amount: SI = P x R x T / 100. Compound interest is calculated on the principal plus accumulated interest. Most banks use compound interest for FDs, which means you earn interest on interest. A Rs 1 lakh FD at 7% for 5 years gives Rs 35,000 as simple interest but approximately Rs 41,478 as compound interest (quarterly compounding). Compound interest always yields more over time.

Monthly compounding gives the highest returns, followed by quarterly, semi-annual, and annual compounding. The difference becomes more noticeable at higher interest rates and longer tenures. For Rs 1 lakh at 7% for 5 years: monthly compounding gives Rs 1,41,762, quarterly gives Rs 1,41,478, semi-annual gives Rs 1,40,710, and annual gives Rs 1,40,255. Most Indian banks compound FD interest quarterly.

As of 2026, FD rates for 1 to 2 year tenure at major banks are approximately: SBI at 6.8%, HDFC Bank at 7.0%, ICICI Bank at 7.0%, Axis Bank at 7.1%, Bank of Baroda at 6.85%, PNB at 7.0%, Kotak Mahindra at 7.1%, and IDFC First Bank at 7.25%. Senior citizens get an additional 0.25% to 0.75% across banks. Small finance banks and NBFCs often offer 0.5% to 1.5% higher rates.

Yes, all banks offer 0.25% to 0.75% additional interest to senior citizens aged 60 years and above. Some banks offer even higher rates for super senior citizens above 80 years. For example, if the regular rate is 7%, senior citizens may get 7.5% at SBI and up to 7.75% at some private banks. This additional rate applies across all tenures and significantly boosts returns over long periods.

Yes, FD interest is fully taxable under "Income from Other Sources" at your applicable income tax slab rate. Banks deduct TDS at 10% if total interest across all FDs exceeds Rs 40,000 per year (Rs 50,000 for senior citizens). If you do not provide PAN, TDS is deducted at 20%. You can submit Form 15G (or 15H for seniors) if your total income is below the taxable limit to avoid TDS. Use our income tax calculator to estimate your tax liability.

TDS (Tax Deducted at Source) on FD is 10% of interest when annual interest exceeds Rs 40,000 (Rs 50,000 for senior citizens). To avoid TDS, submit Form 15G if you are below 60 and your total income is within the basic exemption limit. Senior citizens can submit Form 15H if their estimated tax is nil. You can also split deposits across banks to keep interest below the TDS threshold, though this is only a TDS deferral, not a tax exemption.

A tax-saving FD has a 5-year lock-in period and qualifies for deduction under Section 80C up to Rs 1.5 lakh per year. The interest rate is same as regular FDs but premature withdrawal is not allowed. Both banks and post offices offer this product. While the investment is deductible, the interest earned is still fully taxable. Consider comparing with PPF which offers tax-free interest and the same 80C benefit.

Yes, most banks allow premature withdrawal but charge a penalty of 0.5% to 1% on the applicable interest rate. For example, if your FD rate is 7% and you withdraw after 1 year, the bank may apply a 1-year rate of 6.5% minus 1% penalty, giving you only 5.5% effective rate. Some banks have zero-penalty FDs with slightly lower rates. Tax-saving FDs with 5-year lock-in cannot be withdrawn prematurely.

In a cumulative FD, interest is reinvested and compounded until maturity, giving you a lump sum at the end. In a non-cumulative FD, interest is paid out periodically (monthly, quarterly, or annually) as regular income. Cumulative FDs yield higher total returns due to compounding. Non-cumulative FDs are suitable for retirees who need regular income. The interest rate is usually the same for both types.

FD offers flexible tenure (7 days to 10 years) but interest is fully taxable. PPF offers 7.1% with complete tax exemption (EEE status) but has a 15-year lock-in. NSC offers 7.7% with 80C benefit and a 5-year lock-in, but interest is taxable. For post-tax returns in the 30% bracket, PPF at 7.1% beats a 7% FD (effective 4.9% post-tax). Use our PPF calculator and NSC calculator to compare.

Multiple smaller FDs are generally better for liquidity management. If you need partial funds, you can break one FD instead of the entire amount, minimizing the penalty impact. Also, spreading FDs across banks keeps interest per bank below the TDS threshold of Rs 40,000. However, tracking multiple FDs requires more effort. A practical approach is to ladder your FDs across different tenures to balance liquidity and returns.

FD laddering means splitting your total deposit into multiple FDs with staggered maturity dates. For example, instead of one Rs 5 lakh FD for 5 years, create five FDs of Rs 1 lakh each maturing in 1, 2, 3, 4, and 5 years. As each FD matures, reinvest for 5 years. This gives you regular liquidity access, reduces reinvestment risk from rate changes, and maintains a high average rate across the ladder.

Under the Deposit Insurance and Credit Guarantee Corporation (DICGC), your deposits are insured up to Rs 5 lakh per depositor per bank. This covers principal and interest across all deposit types (savings, FD, RD, current). If a bank fails, DICGC pays this insured amount. To protect larger amounts, spread deposits across multiple banks so each bank holds no more than Rs 5 lakh including interest.

Yes, NRIs can open FDs in India through NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts. NRE FD interest is completely tax-free in India and the principal plus interest is fully repatriable. NRO FD interest is taxable in India at 30% plus applicable surcharge and cess. NRE FD rates are slightly lower than domestic rates. FCNR deposits in foreign currency are also available with tax-free interest.

The minimum FD amount varies by bank: Rs 1,000 at most public sector banks, Rs 5,000 at some private banks, and Rs 10,000 at a few banks. There is generally no maximum limit for FDs. However, deposits above Rs 2 crore may get bulk deposit rates which are different from retail rates. Post Office Time Deposits have no maximum limit. The minimum for tax-saving FDs is typically Rs 100 to Rs 1,000.

If your FD earns 7% and inflation is 6%, your real return is only about 1% before tax. After paying 30% tax on FD interest, your post-tax return drops to 4.9%, which is below the inflation rate. This means your purchasing power actually decreases. To beat inflation, consider allocating a portion of savings to equity mutual funds through SIP while keeping FDs for stability and emergency funds.

Bank FDs are offered by scheduled banks and insured by DICGC up to Rs 5 lakh. Corporate FDs are issued by NBFCs and companies at 0.5% to 2% higher rates but carry higher credit risk and no deposit insurance. AAA-rated corporate FDs from entities like HDFC Ltd, Bajaj Finance, and Mahindra Finance are considered relatively safe. Always check the credit rating before investing in corporate FDs. Higher returns come with higher risk.

Yes, most banks offer overdraft or loan against FD at 1% to 2% above the FD rate. The loan amount is typically 75% to 90% of the FD value. This is better than breaking the FD prematurely because you continue earning interest on the full FD amount while paying slightly higher interest on the loan. The net cost is just the margin (1-2%), which is lower than a personal loan rate of 10-14%.

For tenures that include odd days (like 1 year 6 months 15 days), banks calculate interest for complete quarters using compound interest and for remaining odd days using simple interest. The formula becomes: A = P(1+r/n)^(n*complete_years) + simple interest for remaining days. This calculator handles standard year-based tenures. For exact odd-day calculations, check your bank specific calculator.

Post Office Time Deposit rates (as of 2026) are approximately: 1 year at 6.9%, 2 years at 7.0%, 3 years at 7.1%, and 5 years at 7.5%. The 5-year deposit qualifies for Section 80C deduction. Post office deposits are backed by the Government of India, making them extremely safe. Interest is compounded quarterly and paid annually. These rates are revised quarterly by the government.

The choice depends on your goals and interest rate outlook. If rates are expected to rise, keep FDs short (6-12 months) so you can reinvest at higher rates. If rates are expected to fall, lock in a longer tenure (3-5 years). For emergency funds, a sweep-in FD linked to your savings account provides instant access. For retirement income, a non-cumulative FD with quarterly payouts works well. FD laddering balances both approaches.

A sweep-in FD automatically converts excess savings account balance above a set threshold into FD, and when you need funds, it breaks the FD in reverse order (last FD first). This gives you FD interest rates on idle savings while maintaining savings account liquidity. Most banks offer this feature with a minimum threshold of Rs 25,000 to Rs 1,00,000. It is an excellent way to earn more on idle cash.

In a joint FD, interest is calculated the same way as individual FDs. However, TDS is deducted based on the first holder PAN. For tax purposes, the income can be apportioned based on the contribution of each holder. If the first holder income is below the taxable limit, they can submit Form 15G/15H to avoid TDS. Joint FDs can have "Either or Survivor" or "Former or Survivor" operating instructions.

If you do not provide PAN to the bank, TDS on FD interest is deducted at 20% instead of the standard 10%. This applies when annual interest exceeds the TDS threshold. Additionally, from FY 2019-20, banks require PAN or Form 60 for opening FDs of Rs 50,000 or more. Always link your PAN with your bank to ensure correct TDS deduction and smooth income tax return filing.

Spreading FDs across banks does not reduce your tax liability since all FD interest is taxable regardless of source. However, it helps manage TDS. If interest per bank stays below Rs 40,000, no TDS is deducted (though you must still report all interest income in your ITR). This is useful if your total income is below the taxable limit and you want to avoid the hassle of TDS refund claims. Also ensure DICGC coverage by keeping deposits under Rs 5 lakh per bank.

RD allows monthly contributions (starting from Rs 500) instead of a lump sum, making it ideal for building savings gradually. FD requires a lump sum upfront but offers slightly higher effective returns due to full principal compounding from day one. RD is best for disciplined monthly savings while FD is better when you have surplus cash. Compare using our RD calculator.

Floating rate FDs have interest rates linked to a benchmark like the RBI repo rate. The rate adjusts periodically (usually quarterly) based on changes in the benchmark. SBI floating rate FD is linked to SBI term deposit rate. These are suitable when rates are expected to rise. Fixed rate FDs lock your rate for the entire tenure. In a falling rate environment, fixed rate FDs are better.

To open an FD, you need: PAN card (mandatory for deposits of Rs 50,000 or more), Aadhaar card (for KYC verification), a bank account with the same bank (for interest and maturity credit), and one address proof if KYC is not completed. For online FD opening, most banks require only an active savings account with KYC completed. NRIs need NRE/NRO account with valid passport and visa copies.

FDs remain suitable for the conservative portion of your portfolio, especially for emergency funds and short-term goals. With current rates around 7%, post-tax returns for those in the 30% bracket are about 4.9%, which may not beat inflation. A balanced approach is to keep 3-6 months expenses in FD for emergencies and invest the rest in a mix of PPF, NPS, and equity SIPs for higher long-term returns.

FD gives guaranteed returns of around 7% (pre-tax, approximately 4.9% post-tax in 30% bracket). Equity SIP historically returns 12-14% over 5+ years but with market risk. For comparison, Rs 1 lakh in FD at 7% for 10 years gives approximately Rs 2 lakh. The same amount in SIP at 12% gives approximately Rs 3.1 lakh. Use our SIP calculator to compare and plan your allocation between FD and mutual funds.

Auto-renewal automatically reinvests your matured FD at the prevailing rate for the same tenure. It is convenient if you want to stay invested without manual intervention. However, in a changing rate environment, manual renewal lets you choose a different tenure or negotiate a better rate. Some banks add a small rate premium for online renewal. Set maturity alerts so you can decide at maturity whether to renew, partially withdraw, or invest elsewhere.

FD interest is added to your total income and taxed at your slab rate. Under the New Regime: no tax up to Rs 4 lakh, 5% from Rs 4-8 lakh, 10% from Rs 8-12 lakh, 15% from Rs 12-16 lakh, and so on up to 30%. Under the Old Regime: 5% from Rs 2.5-5 lakh, 20% from Rs 5-10 lakh, and 30% above Rs 10 lakh. High-income earners effectively lose nearly one-third of FD returns to tax. This makes tax-free instruments like PPF more attractive for them.

Yes, parents or legal guardians can open FDs in the name of minor children. The interest income is clubbed with the parent who has the higher income. A deduction of Rs 1,500 per child (maximum 2 children) is available under Section 10(32) for this clubbed income. Once the child turns 18, the FD income is taxed in their own hands. This can be a useful strategy if the child income stays within the exemption limit after turning 18.

FD rates are closely linked to the RBI repo rate. When RBI increases the repo rate, banks raise FD rates to attract deposits. When repo rate decreases, FD rates follow downward. Currently, the repo rate is around 6%, and major bank FD rates are 6.5-7.5%. There is usually a lag of 1-3 months between RBI rate changes and bank FD rate adjustments. Monitoring RBI monetary policy helps you time your FD investments for better rates.

Report all FD interest under "Income from Other Sources" in your ITR. Banks issue Form 16A (TDS certificate) for the TDS deducted. Verify your total FD interest against Form 26AS and AIS (Annual Information Statement) on the income tax portal. If TDS deducted exceeds your actual tax liability, claim a refund by filing your ITR. Interest is taxable in the year it accrues, not when the FD matures, for FDs using the accrual method of accounting.

The highest FD rates in India (2026) are offered by small finance banks and NBFCs: Unity Small Finance Bank at around 8.5%, Utkarsh Small Finance Bank at 8.25%, and Bajaj Finance at 8.0% for specific tenures. Among large banks, IDFC First Bank and Bandhan Bank offer around 7.25-7.5%. Senior citizen rates go 0.25-0.75% higher. Always verify the credit rating and DICGC coverage before choosing high-rate FDs.

For holding periods under 3 years, FDs are simpler and provide guaranteed returns. For periods above 3 years, debt mutual funds previously offered indexation benefits making them more tax-efficient, but recent tax changes have removed this advantage for new investments. Now, debt fund gains are taxed at slab rate like FD interest. FDs still win on simplicity and guarantee. Debt funds offer better liquidity (no premature penalty) and potential for slightly higher returns based on interest rate movements.

FD earns more total interest than RD for the same total amount because the full principal compounds from day one. In an RD, money enters gradually each month so early deposits earn more interest than later ones. For Rs 1,20,000 over 1 year: FD earns approximately Rs 8,400 (at 7%), while RD with Rs 10,000/month earns approximately Rs 4,550 because the average deposit period is only 6.5 months. FD is better when you have a lump sum; RD when you save monthly.