FD Calculator India 2026
Calculate your Fixed Deposit maturity value, total interest earned, and effective annual yield. Supports quarterly, monthly, half-yearly, and annual compounding with senior citizen rate bonus.
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is one of the safest and most popular investment instruments in India. You deposit a lump sum amount with a bank or NBFC for a fixed tenure at a pre-decided interest rate. The principal is guaranteed, and interest is earned at a fixed rate regardless of market conditions, making FDs the preferred choice for risk-averse investors seeking capital safety.
FDs are offered by all scheduled commercial banks, post offices, and several NBFCs in India. The interest can be compounded quarterly (most common), monthly, half-yearly, or annually, and the maturity amount includes both your principal and the accumulated compound interest.
FD Interest Calculation Formula
Maturity Value = P x (1 + r/n)^(n x t)
Where:
P = Principal deposit amount
r = Annual interest rate / 100
n = Compounding frequency per year (4 for quarterly, 12 for monthly)
t = Tenure in years
Interest Earned = Maturity Value - Principal
Fixed Deposit Interest Rates in India (2026)
| Bank | 1 Year | 3 Years | 5 Years | Senior Citizen Extra |
|---|
| SBI | 6.80% | 6.75% | 6.50% | +0.50% |
| HDFC Bank | 6.60% | 7.00% | 7.00% | +0.50% |
| ICICI Bank | 6.70% | 7.00% | 7.00% | +0.50% |
| PNB | 6.80% | 7.00% | 6.50% | +0.50% |
| Post Office TD | 6.90% | 7.00% | 7.50% | N/A |
| Bajaj Finance | 7.40% | 7.55% | 7.75% | +0.25% |
Types of Fixed Deposits
- Regular FD: Standard deposit with fixed tenure and rate. Interest compounded quarterly in most banks. Premature withdrawal allowed with penalty (usually 0.5-1% rate reduction).
- Tax-Saver FD (5-year): Qualifies for Section 80C deduction up to Rs 1.5 lakh. 5-year mandatory lock-in — no premature withdrawal. Interest is fully taxable.
- Senior Citizen FD: Higher rate (usually 0.25-0.50% extra) for depositors aged 60+. Some banks offer super senior citizen rates (80+) with additional 0.25%.
- Cumulative FD: Interest is reinvested and compounded till maturity. You receive principal + total interest at the end. Best for wealth accumulation.
- Non-cumulative FD: Interest is paid out periodically (monthly/quarterly/half-yearly/annually). Best for retirees who need regular income.
- Flexi FD: Linked to savings account. Excess balance beyond a threshold is auto-swept into FD. Offers FD returns with savings account liquidity.
FD Tax Rules in India
- FD interest is fully taxable as "Income from Other Sources" at your income tax slab rate
- TDS: Banks deduct 10% TDS if interest exceeds Rs 40,000/year (Rs 50,000 for senior citizens). If no PAN is provided, TDS is 20%.
- Form 15G/15H: If your total taxable income is below the basic exemption limit, submit Form 15G (under 60) or 15H (senior citizen) to avoid TDS.
- Tax-saver FD: Only the principal invested (up to Rs 1.5L) qualifies for 80C deduction. The interest earned remains fully taxable.
- After-tax return: For someone in the 30% tax bracket, a 7% FD effectively yields only 4.9% after tax — barely keeping pace with inflation.
FD vs PPF vs Debt Mutual Funds
| Feature | Bank FD | PPF | Debt Mutual Fund |
|---|
| Returns | 6.5-7.5% | 7.1% | 6-8% |
| Tax on returns | Fully taxable | Tax-free (EEE) | Taxed at slab (no indexation) |
| Lock-in | Flexible (7 days to 10 years) | 15 years | None (open-ended) |
| Risk | Zero (up to Rs 5L DICGC insured) | Zero (Govt backed) | Low (credit risk) |
| Liquidity | High (with penalty) | Low | High |
| Best for | Short-term parking, emergency fund | Long-term tax-free savings | Tax-efficient short-term |