FD Calculator

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Part of:Investment Returns Guide 2026: ROI Calculator, CAGR, Compound Interest & Portfolio Growth Strategies

Expert Reviewed

|Michael Chen, CFA, CFP®|Updated June 1, 2026Our Standards →

Last updated: June 21, 2026

Calculate Fixed Deposit maturity amount with compounding options and monthly payout mode in Indian Rupees.

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FD Calculator

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Free online FD calculator — calculate fixed deposit maturity amount, interest earned, and effective rate with AI-powered insights.

Deposit Amount (₹)

Annual Interest Rate (%)

Tenure (Months)

Compounding Frequency

Interest Payout

Enter values above to see results.

FD Calculator — Fixed Deposit Complete Guide

Fixed deposits are India's most popular savings instrument — guaranteed returns, DICGC-insured up to ₹5 lakh, and available at every bank. Understanding FD rates, compounding, and tax implications helps you maximize safe returns.

7–8%

Typical FD interest rate range in India (2024)

₹5L

DICGC insurance limit per depositor per bank

7–10 days

Minimum FD tenure at most Indian banks

0.5%

Extra interest for senior citizens (60+ years)

How Fixed Deposit Returns Are Calculated

Indian FDs use quarterly compounding for most banks. Formula: A = P(1 + r/4)^(4t) where A = maturity amount, P = principal, r = annual rate (decimal), t = time in years. For simple interest FDs: SI = P × r × t / 100. Most FDs use compound interest; post office FDs use compound interest quarterly.

Cumulative vs non-cumulative FDs: Cumulative FDs reinvest the interest — ideal for long-term wealth building. Non-cumulative FDs pay out interest monthly, quarterly, half-yearly, or annually — ideal for regular income needs (retired persons, those needing cash flow). Same principal and rate: cumulative FD earns more due to compounding.

Premature withdrawal: Breaking an FD before maturity incurs a penalty, typically 0.5–1% reduction in interest rate. Example: 1-year FD at 7%, broken at 6 months — you get 6-month rate (say 6.5%) minus 1% penalty = 5.5% effective rate. TDS is still applicable on interest earned. Some banks offer "FD with no premature withdrawal penalty" products at slightly lower rates.

FD vs Other Safe Instruments

→FD: 7–8.25% (banks), DICGC insured ₹5L

→PPF: 7.1% (fixed quarterly), 15yr lock-in, tax-free

→NSC: 7.7%, 5yr lock-in, 80C benefit, taxable

→SCSS: 8.2% (senior citizens only), 5yr, quarterly payout

→RBI Bonds: 8.05% (floating), 7yr, taxable

→Liquid Fund: ~7% (variable), no lock-in, capital not guaranteed

Types of Fixed Deposits in India

FD Type	Tenure	Interest	Tax Benefit	Key Feature
Regular FD	7 days–10 years	6.5–8.25%	None	Most flexible; premature withdrawal allowed
Tax-Saving FD	5 years (lock-in)	6.5–7.5%	Sec 80C (up to ₹1.5L)	No premature withdrawal; interest taxable
Senior Citizen FD	7 days–10 years	0.25–0.75% extra	None	Higher rates; quarterly payout options
Corporate FD	1–5 years	7.5–9%+	None	Higher rate; not DICGC insured — carry credit risk
NRE FD (NRI)	1–5 years	7–8%	Interest tax-free in India	Principal + interest fully repatriable
FCNR FD (NRI)	1–5 years	Varies	Tax-free in India	Held in foreign currency; no currency risk

FD Tax Treatment

TDS on FD Interest

Banks deduct TDS (Tax Deducted at Source) at 10% if total FD interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens). TDS rate is 20% if PAN not submitted. Interest is taxable as income per your slab rate regardless of TDS. If your total income is below taxable limit, submit Form 15G (under 60) or Form 15H (60+) to avoid TDS deduction.

Tax-Saving FD (Section 80C)

Tax-saving FDs qualify for deduction under Section 80C (up to ₹1.5 lakh). Lock-in is mandatory 5 years — no premature withdrawal. Interest earned is fully taxable at your slab rate (no special treatment). Ideal for those in 5% or 20% slab who lack 80C investments. Not advisable for 30% slab payers — ELSS (equity) gives same 80C benefit with higher returns potential.

Frequently Asked Questions

Which bank offers the highest FD rate in India?▾

Small Finance Banks (SFBs) like Suryoday SFB, Unity SFB, ESAF SFB offer 8.5–9.5% rates. Among major scheduled banks, Bandhan Bank and Yes Bank offer 7.5–8.25%. Among public sector banks, SBI offers 6.5–7.25%. Higher-rate FDs from smaller banks carry higher (though DICGC-insured up to ₹5L) risk. For amounts over ₹5L, stick to major banks or spread across multiple banks for full DICGC coverage.

What is DICGC and how much does it protect?▾

DICGC (Deposit Insurance and Credit Guarantee Corporation) is an RBI subsidiary that insures bank deposits. Coverage: ₹5 lakh per depositor per bank (increased from ₹1L in Feb 2020). Covers savings, FD, current, recurring deposits. If a bank fails, insured amount paid within 90 days. To maximize coverage: keep less than ₹5L per bank or spread across multiple banks. NBFC deposits and corporate FDs are NOT covered by DICGC.

Is FD interest taxable even if I reinvest it?▾

Yes — cumulative FD interest is taxable on accrual basis (each year), not just at maturity. Even though you don't receive the money, it's deemed income for that year. Banks issue Form 26AS showing TDS deducted annually. You must report and pay tax on interest accrued each year in your ITR. At maturity, only the difference between total interest accrued and what you've already paid tax on is taxed for that final year.

Can I use FD as collateral for a loan?▾

Yes — FD-secured loans (Loan Against FD or LAFD) are offered by banks at rates 1–2% above FD rate. On a ₹10L FD at 7%: LAFD at 8–9%. Loan-to-Value (LTV) is typically 70–90% of FD value. LAFD is ideal for short-term cash needs — cheaper than personal loan (15%+) and doesn't break your FD. FD continues to earn interest; you only pay interest on LAFD. Most useful for urgent liquidity without disturbing long-term FDs.

What is the difference between cumulative and non-cumulative FD?▾

Cumulative FD: interest is compounded and paid at maturity along with principal. Best for wealth accumulation. ₹1L at 7.5% for 3 years → ₹1,24,230 at maturity. Non-cumulative FD: interest paid out periodically (monthly/quarterly/semi-annual/annual). Monthly payout = lower effective yield because each payout doesn't compound. Best for regular income. Same ₹1L/7.5%/3yr → ~₹6,250/quarter or ~₹2,083/month payout.

Can NRIs open FDs in India?▾

Yes, NRIs have three options: (1) NRE FD — in Indian Rupees, principal+interest freely repatriable, interest tax-free in India (may be taxable in country of residence). (2) NRO FD — in Rupees, interest taxable in India at 30% TDS, repatriation limited to $1M/year. (3) FCNR FD — in foreign currencies (USD, GBP, EUR, etc.), no currency conversion risk, tax-free in India. NRE and FCNR rates are tied to international rates.

How does FD laddering work?▾

FD ladder: spread your total investment across multiple FDs of different maturities. Example: ₹3L → ₹1L each in 1-yr, 2-yr, 3-yr FDs. When 1-yr matures: reinvest in 3-yr FD (highest available rate). After 3 years: all FDs are 3-yr but one matures annually. Benefits: (1) liquidity every year without premature withdrawal, (2) average return approaches long-term rates, (3) hedge against rate changes — you don't lock all money at one rate.

What is the minimum and maximum FD amount?▾

Minimum: typically ₹1,000 at most banks (some accept ₹500). Maximum: no regulatory limit, but DICGC coverage is ₹5L per depositor per bank. Large deposits (₹2Cr+) at some banks qualify for bulk deposit rates, which may be slightly higher or negotiable. For amounts above ₹5L seeking full insurance: split across multiple banks, use joint accounts (each joint holder gets ₹5L coverage per account), or use government schemes (NSC, PPF) for unlimited sovereign guarantee.

What happens to my FD if I die?▾

The FD passes to nominees registered at account opening. Nominees submit death certificate and claim form. Banks release funds to nominees (or legal heirs if no nomination) within a defined period. Important: always register a nominee for every FD. Without nomination, family needs to go through legal heir certificate/succession process, which takes months. For high-value FDs, consider also informing family about where FDs are held to simplify estate settlement.

Should I invest in FD or mutual funds?▾

Purpose-driven choice: Emergency fund, capital preservation, guaranteed returns, short-term goals (under 3 years): FD wins — guaranteed, insured, predictable. Long-term wealth creation (5+ years), inflation-beating returns, retirement corpus: Equity mutual funds (SIP) historically return 12–15% CAGR vs FD's 7–8%. At 7% FD vs 12% equity: ₹1L invested for 20 years → FD: ₹3.87L; Equity: ₹9.65L. The gap widens significantly over time.

Can I withdraw my FD before maturity without penalty?▾

Most banks allow premature withdrawal with a 0.5–1% interest rate penalty. Some banks offer "no-penalty" or "flexi FDs" that allow withdrawal at the prevailing rate for that tenure without penalty — at slightly lower rates. Alternatively, take a loan against FD rather than breaking it. If you know you may need the money early, consider: (1) No-penalty FD products, (2) Liquid mutual funds (7% returns, next-day redemption), or (3) FD ladder so only a fraction needs breaking at any time.

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Calculate Your FD Maturity Amount

Enter your principal, interest rate, and tenure above to instantly see your maturity amount, interest earned, and effective return.

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FD Calculator — Complete Guide

Fixed Deposit maturity formulas, comparison of compounding frequencies, tax implications, and optimization strategies.

FD

Fixed Deposit / Term Deposit

6-8%

Bank FD rates (India, 2024)

4-5%

CD rates (USA, 2024)

DICGC/FDIC

Deposit insurance coverage

What Is a Fixed Deposit (FD)?

A Fixed Deposit (FD) — also called a Term Deposit or Certificate of Deposit (CD) internationally — is a financial instrument where you deposit a lump sum with a bank or financial institution for a fixed period at a predetermined interest rate. The capital and returns are guaranteed, making FDs the cornerstone of conservative investing.

In India, FDs remain the most popular savings instrument — banks hold over ₹200 lakh crore ($2.4 trillion) in term deposits. FDs offer guaranteed returns, deposit insurance (₹5 lakh per depositor via DICGC), and flexible tenure options from 7 days to 10 years.

The maturity amount depends on four factors: principal amount, interest rate, tenure, and compounding frequency (quarterly is most common in India). Understanding these factors helps maximize your FD returns.

FD Maturity Formulas

Simple Interest FD

A = P × (1 + r × t)
Interest = P × r × t

Where:
P = Principal (deposit amount)
r = Annual interest rate (decimal)
t = Time in years

Example (₹5,00,000 at 7% for 3 years):
A = 5,00,000 × (1 + 0.07 × 3)
A = ₹6,05,000 | Interest = ₹1,05,000

Simple interest pays less than compound — used mainly for short-term FDs.

Compound Interest FD

A = P × (1 + r/n)^(n×t)

Where:
n = Compounding frequency per year
  Quarterly: n=4, Monthly: n=12

Example (₹5,00,000 at 7%, 3 years, quarterly):
A = 5,00,000 × (1 + 0.07/4)^(4×3)
A = 5,00,000 × (1.0175)^12
A = ₹6,15,687 | Interest = ₹1,15,687

Quarterly compounding earns ₹10,687 more than simple interest on the same FD.

Effective Annual Rate

EAR = (1 + r/n)^n − 1

Examples for 7% nominal rate:
Annual compounding:    EAR = 7.000%
Quarterly compounding: EAR = 7.186%
Monthly compounding:   EAR = 7.229%
Daily compounding:     EAR = 7.250%

Difference: Daily earns 0.25% more than annual.

Compare FDs using EAR, not nominal rates — especially across different compounding frequencies.

Post-Tax FD Returns

Post-Tax Return = r × (1 − Tax Rate)

Example (7% FD, 30% tax bracket):
Post-tax = 7% × (1 − 0.30) = 4.9%

With 6% inflation:
Real return = 4.9% − 6% = −1.1%

FDs in the highest tax bracket often
deliver negative real returns!

Consider tax-saving FDs (80C) and inflation impact when evaluating FD returns.

FD Rates Comparison (2024)

Bank/Institution	1 Year	2 Years	3 Years	5 Years	Senior Citizen Extra
SBI	6.80%	7.00%	6.75%	6.50%	+0.50%
HDFC Bank	6.60%	7.00%	7.00%	7.00%	+0.50%
ICICI Bank	6.70%	7.10%	7.00%	7.00%	+0.50%
Post Office (POTD)	6.90%	7.00%	7.10%	7.50%	N/A
Small Finance Banks	7.50%	8.00%	8.25%	8.00%	+0.50%
Corporate FDs (AAA)	7.50%	8.00%	7.75%	7.75%	Varies

Note: Rates are indicative and subject to change. Always verify with the institution before investing.

History of Fixed Deposits

1694

Bank of England — First Modern Deposits

The Bank of England accepted term deposits from the public at fixed interest rates, establishing the foundational model for modern fixed deposits used worldwide.

1834

India's First Bank Deposits

The Bank of Bombay (later merged into SBI) began accepting fixed-term deposits from Indian savers, introducing the concept to the subcontinent.

1961

FD Interest Rate Regulation (India)

RBI began regulating FD interest rates to prevent excessive competition. Banks were mandated to follow prescribed rate ranges based on tenure — creating a standardized FD market.

1997

Deregulation of FD Rates

RBI deregulated interest rates on term deposits above ₹15 lakh, allowing banks to compete on rates. This later extended to all FD sizes, creating the competitive rate environment we see today.

2020

DICGC Cover Increased to ₹5 Lakh

India increased deposit insurance from ₹1 lakh to ₹5 lakh per depositor per bank, significantly enhancing safety of FD investments — especially relevant after PMC Bank crisis.

2022-24

FD Rate Revival

After years of declining rates post-demonetization, FD rates revived as RBI hiked the repo rate to 6.50%. Senior citizen rates crossed 7.5% at major banks, making FDs attractive again.

Key Research & Data

Reserve Bank of India

Deposit Growth Statistics

RBI data shows scheduled commercial banks held ₹200+ lakh crore in term deposits (2024), with 55% held by households. FDs remain India's largest savings instrument by volume.

DICGC India

Deposit Insurance Framework

Deposit Insurance and Credit Guarantee Corporation insures deposits up to ₹5 lakh per depositor per bank — covering 98.1% of all deposit accounts by number (though only 50.9% by amount).

FDIC (USA)

CD Rate Trends & Insurance

FDIC insures CDs up to $250,000 per depositor per institution. Current high-yield CD rates range from 4.50-5.25% for 1-year terms, the highest since 2007 following Fed rate hikes.

World Bank

Global Savings & Deposit Trends

Global household savings rates averaged 10-25% of GDP (2022), with fixed deposits constituting the primary savings vehicle in developing economies. India's household savings rate is approximately 17.5% of GDP.

FD Myths vs. Facts

✕

FDs are always safe — you can never lose money.

✓

While FDs are guaranteed by deposit insurance (up to ₹5L in India, $250K in USA), any amount above the insurance limit is at risk if the bank fails. Always check the bank's financial health and stay within insured limits.

✕

Higher FD rates always mean better returns.

✓

A higher nominal rate can be misleading. Compare using the Effective Annual Rate (EAR) which accounts for compounding frequency. Also consider post-tax returns — a 7% FD in the 30% tax bracket yields only 4.9% post-tax.

✕

Breaking an FD early means losing all interest.

✓

Premature withdrawal usually means a 0.5-1% penalty on the applicable rate — not forfeiting interest entirely. Some banks may apply the rate for the actual period held, minus a penalty. Still, you earn something.

✕

FDs always beat inflation.

✓

In India (2024), with FD rates at 7% and inflation at 5-6%, real returns are only 1-2% pre-tax and often negative post-tax. During 2020-22, FD rates dropped below 5% while inflation exceeded 6%, delivering negative real returns.

Frequently Asked Questions

What is a Fixed Deposit?▼

A Fixed Deposit is a savings instrument where you deposit a lump sum for a fixed period at a guaranteed interest rate. The bank pays interest at the agreed rate, and your principal is returned at maturity. FDs are insured up to ₹5 lakh in India.

How is FD interest calculated?▼

Most Indian banks calculate FD interest using quarterly compounding: A = P × (1 + r/4)^(4t). For example, ₹1,00,000 at 7% for 1 year with quarterly compounding yields ₹1,07,186 — ₹186 more than simple interest.

What is the difference between FD and CD?▼

FD (Fixed Deposit) is the Indian term; CD (Certificate of Deposit) is the US/international term. Functionally identical — both are fixed-term, fixed-rate deposit instruments. CDs are FDIC-insured ($250K), FDs are DICGC-insured (₹5L).

Can I get a loan against my FD?▼

Yes, most banks offer loans/overdrafts against FDs at 1-2% above the FD rate. You can typically borrow up to 90% of the FD value. This avoids premature withdrawal penalties while providing liquidity.

What is a tax-saving FD?▼

5-year tax-saving FDs qualify for Section 80C deduction up to ₹1.5 lakh/year. They have a mandatory 5-year lock-in (no premature withdrawal). However, interest earned is fully taxable — reducing their effective benefit.

Should I choose cumulative or non-cumulative FD?▼

Cumulative FDs compound interest and pay at maturity — ideal for wealth growth. Non-cumulative pays interest monthly/quarterly — useful for regular income (retirees). Cumulative yields higher total returns due to compounding.

What happens to FD after the holder's death?▼

The FD is transferred to the nominee or legal heirs. Interest continues at the original rate until maturity. Heirs can also request premature closure. Nomination should be filed at the time of FD creation.

Are corporate FDs safe?▼

Corporate FDs carry higher credit risk than bank FDs and are NOT covered by DICGC. Only invest in companies with AAA/AA+ credit ratings. Returns are 0.5-2% higher than bank FDs to compensate for the additional risk.

How does TDS work on FD interest?▼

Banks deduct 10% TDS if total interest exceeds ₹40,000/year (₹50,000 for seniors). If your income is below the taxable limit, submit Form 15G/15H to avoid TDS. PAN is mandatory; 20% TDS applies without it.

What is an FD ladder strategy?▼

Instead of one large FD, split into multiple FDs of varying tenures (1, 2, 3, 4, 5 years). As each matures, reinvest at the longest tenure. This provides periodic liquidity while capturing the best rates.

Should seniors choose FD or SCSS?▼

Senior Citizens Savings Scheme (SCSS) offers 8.2% (2024) vs ~7.5% FD rate for seniors. SCSS has a 5-year lock-in and ₹30 lakh limit but offers higher returns and quarterly payouts. Consider both for diversification.

Are FD returns guaranteed?▼

The interest rate is guaranteed for the FD term. Principal is guaranteed up to DICGC insurance limit (₹5L). For amounts above ₹5L or in corporate FDs, there's a theoretical default risk, though historically rare for major banks.

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FD Calculator — Fixed Deposit Complete Guide

How Fixed Deposit Returns Are Calculated

FD vs Other Safe Instruments

Types of Fixed Deposits in India

FD Tax Treatment

TDS on FD Interest

Tax-Saving FD (Section 80C)

Frequently Asked Questions

Related Calculators

Calculate Your FD Maturity Amount

FD Calculator — Complete Guide

What Is a Fixed Deposit (FD)?

FD Maturity Formulas

FD Rates Comparison (2024)

History of Fixed Deposits

Bank of England — First Modern Deposits

India's First Bank Deposits

FD Interest Rate Regulation (India)

Deregulation of FD Rates

DICGC Cover Increased to ₹5 Lakh

FD Rate Revival

Key Research & Data

Deposit Growth Statistics

Deposit Insurance Framework

CD Rate Trends & Insurance

Global Savings & Deposit Trends

FD Myths vs. Facts

Frequently Asked Questions

References

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