FD Calculator - Fixed Deposit Maturity

How to Use the FD Calculator

Deposit Amount

Enter your lump sum investment amount.

Interest Rate

Enter the bank's annual interest rate (e.g. 7.1%).

Tenure

Choose your deposit tenure in years and months.

Maturity Output

Instantly view total interest and maturity amount.

Fixed Deposit (FD) Calculator: Complete Interest & Maturity Guide

A Fixed Deposit (FD) is one of the most reliable and time-tested savings vehicles in banking. By locking in a lump-sum amount at a fixed rate of interest for a predetermined tenure, you protect your capital from market volatility while earning guaranteed returns. Our free FD calculator computes exact quarterly compounding maturity amounts, cumulative interest earned, and payout breakdowns for regular citizens and senior citizens.

How Bank FD Interest is Calculated: Compounding Math

Indian banks compound Fixed Deposit interest on a quarterly basis (4 times a year). The standard compound interest formula applied is:

            A = P × (1 + r / n)(n × t)
          

A: Total Maturity Amount (Principal + Total Compound Interest).
P: Principal Deposit Amount (e.g. ₹1,00,000 to ₹10,00,000+).
r: Annual Interest Rate in decimal format (e.g. 7.25% = 0.0725).
n: Compounding frequency per year (n = 4 for standard quarterly compounding).
t: Total Deposit Tenure in years (e.g. 1, 3, 5, or 10 years).

FD Rates by Institution Type

Fixed deposit rates vary far more by the type of institution than between individual banks in the same category. Senior citizens generally get an extra 0.25%–0.75% across the board.

How to read this: these are indicative market ranges as of September 2026, not quotes, and not tied to any one lender. Your actual rate depends on your credit score, income, loan-to-value and the lender’s own pricing. Always compare the APR (which folds in fees) rather than the headline interest rate, and confirm the figure with the lender before you commit.

Institution type	Regular (1–3 yr)	Senior citizen	What to know
Large public sector bank	6.5% – 7.0%	7.0% – 7.5%	Deposits insured up to ₹5 lakh per bank by DICGC
Large private bank	6.75% – 7.25%	7.25% – 7.75%	Same ₹5 lakh insurance cover
Small finance bank	7.5% – 8.5%	8.0% – 9.0%	Higher rate, identical ₹5 lakh cap — split large sums across banks
Post Office term deposit	~7.1%	Same as regular	Sovereign backing rather than DICGC insurance

FD interest is fully taxable at your slab rate and TDS is deducted once interest crosses ₹40,000 in a year (₹50,000 for senior citizens). The maturity figure above is pre-tax — at the 30% slab, a 7% FD nets closer to 4.9%.

Cumulative vs Non-Cumulative Fixed Deposits

Cumulative FD (Reinvestment Plan): Interest is compounded quarterly and paid out in full along with the principal at maturity. This maximizes your compound growth and is ideal for wealth building.
Non-Cumulative FD (Monthly/Quarterly Payout): Interest is disbursed directly into your savings account every month or quarter. This option is popular among retirees who need regular monthly income to cover living expenses.

Taxation on Fixed Deposits: TDS & Section 80TTB

The headline rate is not what you keep. Two rules decide the difference:

Tax Deducted at Source (TDS): Banks deduct 10% TDS if total annual interest across all branches exceeds ₹40,000 for regular individuals (₹50,000 for senior citizens). If PAN is not provided, TDS is deducted at 20%.
Tax Slab Liability: FD interest is added to your total income under "Income from Other Sources" and taxed at your applicable slab rate.
Form 15G / 15H: If your total taxable income is below the basic exemption threshold, you can submit Form 15G (below age 60) or Form 15H (senior citizens) to prevent TDS deduction.
5-Year Tax Saver FD: Qualifies for tax deduction under Section 80C up to ₹1.5 Lakhs, with a mandatory lock-in period of 5 years (no premature withdrawal or loan permitted).

5 Strategies to Maximize Fixed Deposit Returns

FD Laddering: Instead of locking ₹5,00,000 in a single 5-year FD, create five separate FDs of ₹1,00,000 with 1, 2, 3, 4, and 5-year maturities. This provides regular liquidity and hedges against interest rate changes.
Use senior citizen rates: Booking FDs in the name of senior citizen parents earns an extra 0.50% to 0.75% interest plus ₹50,000 tax deduction under Section 80TTB.
Deposit in Multiple Banks: Spreading deposits across multiple scheduled commercial banks ensures all your funds are covered under DICGC insurance (₹5 Lakhs per bank per depositor).
Avoid Premature Withdrawal Penalties: Banks typically charge a 0.50% to 1.00% penalty on premature liquidation. Instead, consider a short-term Loan Against FD (at 1% above the FD rate) for immediate liquidity needs.

Frequently Asked Questions

What is a Fixed Deposit (FD)?

A Fixed Deposit is a secure financial instrument offered by banks and NBFCs where you deposit a lump sum for a specific tenure at a predetermined interest rate. It provides guaranteed returns, making it one of the safest investment options available. FDs are immune to market volatility.

How is FD interest calculated?

FD interest can be calculated using either simple or compound interest, depending on the bank and tenure. Most banks compound interest quarterly. Our FD calculator automatically applies standard quarterly compounding formulas to give you accurate maturity values.

What is the difference between FD and RD?

In a Fixed Deposit, you invest a single lump sum amount at the beginning of the tenure. In a Recurring Deposit (RD), you invest a fixed smaller amount every month. FDs generally earn slightly more interest overall since the entire principal is invested from day one.

Can I withdraw my FD before maturity?

Yes, premature withdrawal of an FD is usually allowed, but it typically attracts a penalty. Banks usually reduce the applicable interest rate by 0.5% to 1% for the period the deposit was held. Tax-saving FDs (5-year lock-in), however, cannot be withdrawn prematurely.

Is FD interest taxable?

Yes, the interest earned on Fixed Deposits is fully taxable according to your income tax slab. Banks also deduct TDS (Tax Deducted at Source) at 10% if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if eligible.

Do senior citizens get higher FD rates?

Yes, almost all banks and financial institutions offer an additional interest rate of 0.50% to 0.75% for senior citizens (individuals aged 60 and above). This makes FDs a highly attractive and safe regular income option for retirees.

Cumulative vs Non-Cumulative FD?

In a cumulative FD, interest is compounded and paid out along with the principal only at maturity, offering maximum growth. In a non-cumulative FD, interest is paid out periodically (monthly, quarterly, or annually) to provide regular income, which is ideal for pensioners.

How safe are Fixed Deposits?

Bank FDs are considered highly safe. In India, deposits in scheduled commercial banks are insured up to ₹5 lakh per bank per customer by the DICGC, an RBI subsidiary. Corporate FDs carry slightly higher risk but offer better interest rates.