Fixed deposits remain the default safe-money instrument for most Indian households - DICGC insured up to ₹5 lakh per bank, locked-in returns immune to market swings, and a simple booking process. The trade-off is modest after-tax yield: at 7.25% pre-tax, someone in the 30% slab nets ~5.1% after TDS and slab-rate taxation, often barely beating inflation.
The guides below cover the three decisions that actually move the needle for FD investors: laddering (splitting one large FD across staggered maturities to balance liquidity and rate-lock), comparing FD with PPF and debt funds at your specific tax slab, and understanding the compound-interest mechanics so you can spot when one bank's "higher rate" is actually a lower yield. The FAQ at the bottom covers the FY 2025–26 TDS thresholds and DICGC insurance details.
All Fixed Deposit Guides
FD Laddering Strategy India 2026 | Stay Liquid & Earn More
Split one large FD into multiple FDs with staggered maturities. Worked ₹5 lakh example across 1–5 year tenures with senior citizen tips.
Read Guide →FD vs PPF vs Debt Funds India 2026 | Which Wins?
After-tax returns at 30%, 20% and 5% tax brackets. See which safe investment wins for your tax slab in FY 2025-26.
Read Guide →How FD Interest Is Calculated in India 2026 | Formula
Simple vs compound, quarterly compounding formula, TDS deduction rules, and examples for ₹1 lakh to ₹10 lakh FDs.
Read Guide →Calculate Your Fixed Deposit
Use our free Fixed Deposit calculator to plan your investments with accurate projections.
Open FD Calculator →Frequently Asked Questions
What are the current FD interest rates in India?
As of 2026, major banks offer 6.5%–7.25% for general citizens and 7.0%–7.75% for senior citizens on 1–5 year FDs. Small finance banks and NBFCs offer higher rates (up to 8.5%) but with slightly elevated risk. Rates change with RBI repo decisions and each bank's liquidity position.
Are bank FDs safe in India?
FDs are among the safest instruments in India. Deposits up to ₹5 lakh per bank per depositor are insured by DICGC (a RBI subsidiary). For amounts above ₹5 lakh, split deposits across multiple banks. Scheduled commercial banks carry negligible failure risk; small finance banks carry slightly more.
What is the TDS threshold on FD interest?
Banks deduct 10% TDS when total annual interest from FDs with one bank exceeds ₹50,000 for general citizens or ₹1,00,000 for senior citizens (FY 2025-26 onward). Submit Form 15G (below 60) or Form 15H (60+) if your total income is below the basic exemption to avoid TDS.
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