How is FD interest calculated?

FD interest is calculated using compound interest formula: A = P(1 + r/n)^(nt), where P is principal, r is annual interest rate, n is compounding frequency (quarterly=4, monthly=12), and t is tenure in years. Interest can be quarterly, monthly or annually compounded.

What is the current FD interest rate in India?

As of 2026, FD interest rates in India range from 5.5% to 8.5% depending on the bank, tenure, and amount. Senior citizens get an additional 0.25% to 0.75%. Small finance banks typically offer higher rates than public sector banks.

Is FD interest taxable?

Yes, FD interest is fully taxable as per your income tax slab. Banks deduct TDS at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). You can submit Form 15G/15H if total income is below taxable limit to avoid TDS.

What is compounding frequency in FD?

Compounding frequency determines how often interest is added to principal. Quarterly compounding (4 times/year) is most common. Monthly compounding gives slightly higher returns than quarterly. Higher compounding frequency results in better maturity amount.

Can I withdraw FD before maturity?

Yes, you can prematurely withdraw FD but banks charge a penalty of 0.5% to 1% on the applicable interest rate. Interest is recalculated for actual deposit period at reduced rate. Some banks don't allow premature withdrawal for very short durations.

What is the minimum and maximum FD amount?

Minimum FD amount is typically ₹1,000 for most banks, though some allow ₹5,000 or ₹10,000. There's no maximum limit for FD deposits. Tax-saving FDs under Section 80C have a minimum of ₹100 and maximum deduction of ₹1.5 lakh.

Which gives better returns - FD or SIP?

SIP in equity mutual funds historically delivers 12-15% returns long-term but with market risk. FDs give guaranteed 5.5-8.5% returns with zero risk. Choose FD for safety and guaranteed returns, SIP for long-term wealth creation with higher risk-reward ratio.

FD Calculator India 2026 - Calculate Fixed Deposit Returns

Calculate Your Fixed Deposit Maturity Amount

Enter your FD amount, interest rate, tenure, and compounding frequency to see your maturity value and interest earned.

Fixed Deposit Amount: ₹5,00,000

Use +/− buttons or drag the slider between ₹1,00,000 and ₹25,00,000

Annual Interest Rate: 7%

Current FD rates: 5.5% - 8.5% p.a. (senior citizens get extra 0.5%)

Deposit Tenure: 5 Years

Longer tenure typically offers higher interest rates

Compounding Frequency Most banks offer quarterly compounding

Your FD Maturity Results

Maturity Amount

₹0

Total amount at maturity

Principal Amount

₹0

Your deposit amount

Interest Earned

₹0

Total interest income

Detailed Breakdown

Principal Deposited: ₹0

Interest Rate: 0%

Tenure: 0 Years

Compounding: Quarterly

Total Interest Earned: ₹0

Maturity Value: ₹0

📌 Important Notes

FD interest is taxable as per your income tax slab
TDS deducted at 10% if annual interest exceeds ₹40,000 (₹50,000 for senior citizens)
Premature withdrawal attracts penalty of 0.5% to 1% on interest rate
Senior citizens get additional 0.25% to 0.75% interest
Tax-saving FDs have 5-year lock-in under Section 80C
Actual returns may vary based on bank/post office specific rates

About FD Calculator

Our Fixed Deposit (FD) Calculator helps you calculate the exact maturity amount and interest earned on your fixed deposit. Whether you're investing in bank FDs, post office FDs, or corporate FDs, this tool provides accurate calculations based on your deposit amount, interest rate, tenure, and compounding frequency.

Fixed Deposits are one of the safest investment options in India, offering guaranteed returns with principal protection. Use this calculator to plan your investments, compare different FD schemes, and understand how compounding frequency affects your returns.

How to Use This FD Calculator

Enter Deposit Amount: Adjust the slider to set your FD amount (₹10,000 to ₹1 Crore)
Set Interest Rate: Enter the annual interest rate offered by your bank (typically 5.5% to 8.5%)
Choose Tenure: Select deposit period from 1 to 10 years
Select Compounding: Choose quarterly, monthly, half-yearly, or annual compounding
View Results: Instantly see maturity amount and interest earned

FD Interest Calculation Formula

Fixed deposit maturity amount is calculated using compound interest formula:

                    Maturity Amount = Principal × (1 + Rate / Compounding Frequency) ^ (Compounding Frequency × Time)
                

Where:

Maturity Amount = Total amount you receive at maturity
Principal = Initial deposit amount
Rate = Annual interest rate (in decimal)
Compounding Frequency = Number of times interest is compounded per year (4 for quarterly, 12 for monthly)
Time = Tenure in years

Understanding Compounding Frequency

Compounding frequency significantly impacts your returns:

Quarterly Compounding: Most common, interest added every 3 months (4 times/year)
Monthly Compounding: Interest added every month (12 times/year) - highest returns
Half-Yearly: Interest added twice a year (6-month intervals)
Annual: Interest added once per year - lowest returns

Higher compounding frequency results in better maturity value as interest earns interest more frequently.

Tax Implications on FD Interest

FD interest income is fully taxable:

Interest added to your income and taxed as per slab rate (5%, 20%, or 30%)
Banks deduct TDS at 10% if total FD interest in a year exceeds ₹40,000
Senior citizens have TDS limit of ₹50,000
Submit Form 15G (below 60 years) or 15H (senior citizens) to avoid TDS if income is below taxable limit
Post-tax returns are lower than displayed maturity amount

Best FD Rates in India 2026

Compare FD rates across different financial institutions:

Small Finance Banks: 8% to 8.5% (highest rates)
Private Sector Banks: 6.5% to 7.5%
Public Sector Banks: 5.5% to 7%
Post Office FD: 7% to 7.5% (5-year FD)
Senior Citizen FD: Additional 0.25% to 0.75% over regular rates

Always compare rates and check RBI deposit insurance (up to ₹5 lakh per depositor per bank).