FD Calculator
A fixed deposit calculator is a free online tool that computes the maturity amount and interest earned on your bank fixed deposit — with monthly, quarterly, half-yearly, or yearly compounding.
Year-wise Growth
| Year | Value | Interest |
|---|---|---|
| Year 1 | ₹1,07,186 | ₹7,186 |
| Year 2 | ₹1,14,888 | ₹14,888 |
| Year 3 | ₹1,23,144 | ₹23,144 |
| Year 4 | ₹1,31,993 | ₹31,993 |
| Year 5 | ₹1,41,478 | ₹41,478 |
Estimates only. FD interest is taxable per your income slab.
How to use FD Calculator
- Enter deposit amount — Type the principal you're depositing.
- Set interest rate — Enter the annual FD rate (typically 6.5-8% in India).
- Choose tenure — Select the duration — months or years.
- See maturity — View maturity amount and total interest earned.
Key features
- Multiple compounding options
- Maturity amount calculation
- Total interest earned
- Year-wise growth table
- Effective annual yield
- Senior citizen rate support
What is a Fixed Deposit?
A fixed deposit (FD) is a financial instrument where you deposit a lump sum with a bank or NBFC for a fixed period at a fixed interest rate. FDs are one of the safest investment options in India — returns are guaranteed, and deposits up to ₹5 lakh per bank are insured by DICGC. FDs work best for conservative investors and short-to-medium-term goals.
The Power of Compound Interest in FDs
FDs use compound interest — your interest earns interest. A ₹1 lakh FD at 7% for 5 years grows to ₹1.41 lakh with yearly compounding, but ₹1.41 lakh with quarterly compounding. Over 10 years, the difference grows to ₹15,000+. Always choose quarterly compounding when available — it's the standard for most Indian banks.
FD Rates in India (2026)
Public sector banks (SBI, PNB, BoB) offer 6.5-7.5% for regular citizens and 7-8% for seniors. Private banks (HDFC, ICICI, Axis) offer slightly higher rates — 7-8% regular and 7.5-8.5% senior. Small finance banks (AU, Ujjivan, Equitas) often offer 7.5-9% — highest but with slightly higher risk. Rates also vary by tenure — 1-2 year FDs often have the best rates.
FD vs Other Investment Options
FD returns: 6.5-8% (guaranteed). Savings account: 3-4% (liquid). Debt mutual funds: 7-8% (slightly higher risk). Equity mutual funds: 10-15% expected (higher risk). PPF: 7.1% (tax-free). For pure safety, FDs are ideal. For growth, equity beats FDs long-term. Many investors split between both — FDs for safety, equity for growth.
Pro tips
- Ladder your FDs across different tenures for liquidity
- Compare rates across 3-4 banks before depositing
- Split deposits across banks to stay under ₹5L insurance limit
- Senior citizens get 0.5% higher rates — always ask
Common use cases
- Planning safe investments
- Calculating FD returns before depositing
- Comparing FD rates across banks
- Retirement corpus planning
- Emergency fund parking
Frequently asked questions
How is FD interest calculated?+
FD uses compound interest. Formula: A = P × (1 + r/n)^(n×t) where P is principal, r is rate, n is compounding frequency, t is years.
What's the current FD rate in India?+
As of 2026, FD rates range from 6.5% to 8% for regular citizens and 7-8.5% for senior citizens.
Is FD interest taxable?+
Yes — FD interest is taxed as per your income slab. TDS applies if annual interest exceeds ₹40,000 (₹50,000 for seniors).
Which compounding is best?+
Quarterly compounding is the most common and gives better returns than yearly. Monthly is slightly better but rarely offered.
Can I withdraw FD early?+
Yes, but typically with a 0.5-1% penalty on the interest rate.
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